The skyrocketing price of real estate in Bangkok’s Central Business District has inevitably forced retail investors to review their investment strategy. Many investors are now reevaluating the “risk and reward ratio” of buying in Prime Central Bangkok!
The sky-high property prices of new projects in recent years have inevitably led to an equivalent decrease in rental yields and the current uncertain situation has made forecasting capital appreciation returns difficult.
This has led adventurous investors to seek opportunity and investment return in new, up-and-coming and speculative neighborhoods. While this is definitely risky, for a rapidly transforming city like Bangkok, the strategy of speculating on the “Next Central Business District” presents a unique opportunity!
It is important to note that extensions of Bangkok’s Prime Areas are a recurring market trend in the city’s urban development history. Many previously “peripheral locations” are now desirable and high-coveted; this includes areas such as Rama 9- Ratchada and even the Riverside (Charoen Krung – Charoen Nakhon Road).
At present, 3 neighborhoods in the Capital are starting to position themselves as major business, commercial and lifestyle districts. These 3 areas are largely considered “Peripheral Outer Bangkok” and property prices in those neighborhoods are still very affordable!
Let’s explore these 3 emerging business and lifestyle districts:
Located in Eastern Bangkok, the neighborhood is often touted as Bangkok’s gateway to the Eastern Economic Corridor. This is due to its geographical proximity to the provinces of Chonburi and Rayong that are the heart of Thailand’s export processing and manufacturing zones. This part of Thailand has been in the spotlight in recent years, especially with the opening of the ASEAN economic community. With property professionals and developers predicting that the area has the potential to be a commercial and business hotspot for Inter-Asean trade.
Bangna is not just an industrial neighborhood, it is actually already an affluent area with many expensive low-rise housing projects and numerous top international schools (I.e., Bangkok Pattana International School, Berkeley International School, etc.) located in the area.
Bangna is also the center of intense commercial and residential development activity with several mega projects currently under construction. This includes the Bangkok Mall located on the Bangna Intersection; according to earlier plans released, this development will be the largest mixed-use complex in Southeast Asia.
Another ambitious project currently under construction is The Forestias by MQDC developed on an expansive 30-rai of land; the mixed-use mega project will consist of office towers, residential developments and a lifestyle mall.
Finally, 2 other notable projects include the extension and upgrade of Mega Bangna and the launch of Central Village, a “Premium Outlet Mall”.
Phahon Yothin- Ladprao
Located on the northern section of Bangkok, Phahon Yothin- Ladprao is already an established and popular residential and lifestyle hub!
However, this already appealing neighborhood is now ultra-connected and convenient especially with the completion of the Mass Transit Extensions and Interchange (BTS Skytrain and MRT Line). This effectively, allows residents to shuttle to the northern, western and southern parts of the city with ease. Don Mueang International Airport is also located in close travelling proximity.
The lifestyle convenience has not gone unnoticed by the city’s commercial developers that have invested into gentrifying and upgrading the neighborhood’s retail and leisure offerings. The residents of Phahon Yothin-Ladprao can currently enjoy several shopping destinations notably Union Mall, CentralPlaza Ladprao and Major Ratchayothin Complex. The area is also host to the iconic Chatuchak Market, the biggest open-air market in Southeast Asia and an important wholesale market for the region’s retailers.
However, the reason Phahon Yothin-Ladprao has specifically made this list is because of the imminent completion of the Bangsue Grand Station. This impressive transport infrastructure is the biggest rail transit hub in ASEAN. The station currently links Bangkok to several parts of Thailand and it could be the beginning of a Trans-ASEAN connection from Bangkok to all parts of Southeast Asia.
It is important to note that large development sites around the Bang Sue Grand Station have been allocated for potential mixed-use developments (I.e., Office and Business, residential, retail and leisure). This could transform the Phahon Yothin- Ladprao into a logistics and business hotspot!
Rama IV Road
Rama IV Road is a strategically positioned thoroughfare on the periphery of several of Bangkok’s most exclusive neighborhoods notably Silom, Ploenchit, Samyan and Phrom Phong.
This geographic proximity to Bangkok’s Prime Areas combined with the availability of developable land plots have made this road an intense development hotspot. Rama IV Road is currently welcoming numerous transformational mega-projects that are completely changing the character of the area.
These projects include the already completed Samyan Mitrtown and The PARQ. Other major projects still under construction include “Dusit Central Park”, a joint venture led by Dusit Thani and Central Pattana and One Bangkok by TCC, a mixed-used complex spread over 120 rais of land comprised of A-Grade office towers, 5 luxury hotels, 3 luxury residences and several leisure and lifestyle venues.
These are only a small list of the large pipeline of projects currently underway, however this is enough of an overview to provide the scale and magnitude of the urban transformation that Rama IV Road is currently experiencing.
Numerous property professionals are predicting that the neighborhood is likely to attract more developments in the near future. Eventually establishing Rama IV Road as an official “Extended Central Business District”!
Peripheral Markets an Investment Opportunity?
As mentioned earlier, these 3 neighborhoods are still considered “Peripheral Markets” and in many ways remain speculative and risky bets. This inherent risk means that real estate in these locations are still attractively low when compared to Central Bangkok. Investors prospecting these neighborhoods should be cautious and high-selective, only taking on a manageable level of risk that is offset by potentially high returns!
Fresh Property is an established real estate agency offering consultancy, sales, rental and property management services.
If you are an investor or homebuyer interested in the real estate options available in Bangkok’s up-and-coming peripheral markets, feel free to browse our Agency’s extensive collection of new projects and resale properties.