Developers drawn to new hub
The Phahon Yothin-Lat Phrao area is becoming a new residential centre and transport hub, with major developers racing to launch new projects in the area, says property consultant Plus Property.
Managing director Anukul Ratpitaksanti said the company’s survey of the condominium market in the Phahon Yothin-Lat Phrao area found major developers have begun projects in the vicinity of the electric train line there over the past five years.
The launch prices of condominiums were between 120,000-180,000 baht per square metres. The first half of 2017 saw a high reception rate, at 84% of total outstanding supply of 4,616 units. Average absorption rate was 153 units per month per project.
The expansion of demand in this zone has resulted in an upward adjustment of the selling price of condominiums. The average selling price has risen 5% from that at the end of 2016, to 150,000 baht per sq m. Rooms at existing condominium projects are being resold at a 10% markup, at an average of 165,000 baht per sq m.
The Phahon Yothin-Lat Phrao zone will be where the Green Line BTS and the Ratchamongkhon Line MRT meet.
The two electric train lines allow for easy access to Bangkok’s downtown area. Many bus routes also service the area, and there are two expressways in the vicinity — Sirat Expressway and Uttraphimuk Tollway (Don Mueang tollway).
The area also affords easy access to Chatuchak Market and Chatuchak Park, the Market Organization for farmers Market, and well-known shopping centres, hospitals and educational institutes.
These facilities make the Phahon YothinLat Phrao area suited for residency and condominium projects within the zone are popular due to real demand. This fact is presently contributing to a rapid rise in the average selling price of condominiums in this zone.
Furthermore, Bang Sue central train station is undergoing development. When ready, this will link various electric train lines with high-speed trains that connect the northern and southern regions. Construction is 52% complete and it is expected to open for service within 2020.
Bang Sue central station’s prospect of becoming a transport hub in the near future has been stimulating various kinds of real estate developments in its vicinity.
New ready-to-use office buildings provide an example of such developments — which will result in the locality becoming a new jobs market, which will in turn spur demand for more residences.
“The Phahon Yothin-Lat Phrao zone not only accommodates those who make purchases for residency but also receive a warm response from rental tenants, with the average rate of return standing at 5% per year,” said Mr Anukul.
“The most popular room type is the onebedroom unit with areas of 30-40 sq m. The average rent is 520 baht per sq m per month [15,000-23,000 baht per unit per month]. Owners make up 65% of occupancy and tenants make up 25%,” he said.