Nexus touts condo hotspot along Ratchadaphisek

Locations on Ratchadaphisek Road, from the Rama IX to Ratchayothin intersections, are attractive for condominium investment as the rental yield and capital gain starts from 5% per year, says property consultant Nexus Property Marketing Co.

Managing director Nalinrat Chareonsuphong said Ratchadaphisek Road connects to many key thoroughfares including Lat Phrao, Sutthisan and Rama IX, making condominium investment there attractive.

“Along Ratchadaphisek Road, from the Rama IX to Ratchayothin intersections, — a stretch spanning 10.5 kilometres — there will be two future mass transit lines connecting to the MRT, boosting opportunities for growth in the location,” she said.

According to company research, the location is divided into three zones: Ratchada-Rama IX, covering the area from the Rama IX intersection to the Thailand Cultural Centre MRT station; Ratchada-Sutthisan, covering the area from the Thailand Cultural Centre MRT station to the Thiem Ruammit and Sutthisan intersections; and the Ratchada-Lat Phrao zone, covering the area from the Sutthisan to Ratchayothin intersections.

Over the past five years, locations on Ratchadaphisek Road saw condominium prices grow 9.3% per year or from an average of 86,900 baht per square metre in 2013 to 116,000 per sq m in 2017.

That condominium price rise was in line with growth of 10% per year in inner city locations.

Among the three zones, Ratchada-Lat Phrao saw the highest growth over the past five years, rising 15% annually.

In the Ratchada-Sutthisan zone, condominium prices increased by 5% annually, while the Ratchada-Rama IX zone registered 8% growth. This suggests market growth and strong demand among middleend condominium buyers, said Nexus.

For investment purposes, Mrs Nalinrat said condominium rentals in this location generated an annual yield of 5.39%, higher than that in inner city locations, which saw a yield of 3-5% per year.

“Condominiums in this location are attractive as they are near offices and can be sold or rented to foreigners,” she said.

The company said condominium supply in the Ratchada-Rama IX zone totals 6,279 units, with a sales rate of 89% and an average price of 132,600 baht per sq m, the highest average price per sq m among the three zones.

In the Ratchada-Sutthisan zone, there are 3,305 condominium units with a sales rate of 93% and an average price of 117,875 baht per sq m.

This location is full of offices and entertainment venues, where many Chinese and Korean visitors frequent, said Mrs Nalinrat.

Condominium supply in the Rat chad a-Lat Phrao zone totals 5,256 units, with a sales rate of 68% and an average price of 100,200 baht per sq m.

There will be a lot of new condominium projects in this zone as the Yellow Line is scheduled for construction, she said.

“By 2020, when the Yellow Line will be completed, the Ratchadaphisek location will likely attract investors to develop new projects, particularly in locations where the Yellow and Orange lines will have an interchange,” said Mrs Nalinrat.

There is also an additional extension from the Yellow Line at Ratchada-Lat Phrao intersection, linking up with the Dark Green Line at Ratchayothin intersection.