Knight Frank Thailand Spotlights Ramkhamhaeng as the New Up-and-Coming Locale for Expansion from the City Centre

Mr. Phanom Kanjanatheimthao, Managing Director of Knight Frank Thailand revealed that the Bangkapi- Ramkhamhaeng area reflects a new potential location for the expansion of residential condominium development projects. Several factors support this growth, including investment in public infrastructure, namely, the development of three MRT lines: the Orange Line (East) Project from the Cultural Centre-Min Buri (Suwinthawong); the Yellow Line Project from Lat Phrao-Samrong; and the Ramkhamhaeng area, which is served by the Airport Link train route at Ramkhamhaeng Station. This helps people living or working in this area to have convenient access to Suvarnabhumi Airport as well as to be able to travel easily to the city, including the Makkasan or Phayathai areas, by the Airport Link.

Image 1: Map of Development in Ramkhamhaeng by Public and Private Sectors

In addition to the government’s development of infrastructure, the private sector has also seen the potential of Ramkhamhaeng. The Mall Group is preparing to adapt and renovate The Mall Ramkhamhaeng 2 to better cater to residents and workers in the area.

The Mall Ramkhamhaeng 2 shopping complex is expected to be completed and open with about 200,000 square metres of space. There will be approximately 88,000 square metres of space available for rent. The project is expected to be finished in the 4^th quarter of 2021.

In the future, the Ramkhamhaeng area is also slated to be a business district. At present, there has been development of grade A branded office buildings like Major Tower, which uses the name Major Tower Rama 9-Ramkhamhaeng. It has around 25,000 square metres of space for rent. There are also mixed-use developments, which include offices, retail space and residential units, such as the Matris Rama –Ramkhamhaeng condominium that is being developed by Major Development PCL.

Travel by private car is convenient, whether going inbound or outbound, due to the connectivity of many major routes such as Rama 9 Road and Ramkhamhaeng to Ekamai and Thonglor. The latter two are served by the BTS mass transit system as well as the Expressway.

In addition, the Motorway, Chalong Rat Expressway and Srirat Expressway are close by. Moreover, the area houses leading hospitals as well as many education institutions at both the primary and secondary levels.

Image 2: Details of Project Developments in Ramkhamhaeng

Knight Frank Thailand research indicatesthat the condominium supply in the Ramkhamhaeng area in the middle of 2019 stood at 14,750 units. The market in this area has seen a large amount of new supply occurring since 2017; this is due to the Cabinet approval of the construction of the Orange Line MRT Project serving the Thailand Cultural Centre-Min Buri route on 19 April 2016. Operators came in to buy land to develop condominium projects, and they launched more sales from 2017 to 2019.

By 2017, the new supply of condominiums launched for sale was up to 3,658 units. In 2018, the new supply launched for sale included 2,661 units, and as of the first half of 2019, there has been around 2,236 new units launched for sale. In 2019, it expected that there would be more than 6,000 condos launched for sale in this area.

Image 3: Condominium Supply in Ramkhamhaeng Area, 2011 to Mid-2019

In the middle of 2019, the cumulative number of condominiums units sold in the Ramkhamhaeng area reached as high as 12,370 units out of 14,750 units available for sale, representing a sales rate of 83.9 percent. There are about 2,380 condominium units left for sale. The number of condominium units sold over the past 2 to 3 years has been about 2,500 units per year, as the area has shown much potential. More and more people, both Thais and foreigners, are interested in buying condominiums in this area.

Foreign buyers who are interested in condominiums in the Ramkhamhaeng area include the Chinese and Singaporeans, as the units still have affordable prices when compared to condominiums on Ratchadapisek Road, which have a selling price of up to 150,000 baht per square metre. Once the Orange Line is completed, travelling from Ramkhamhaeng to Ratchadaphisek at the Thailand Cultural Centre station will be convenient. Most Thai buyers buy condominiums as a residence, while other purchase them as investment property. It is expected that the prices of condominiums in ​​Ramkhamhaeng will experience significant increases in the future.

 Image 4: Supply, Demand and Sales Rate in Ramkhamhaeng Area, 2011 to Mid-2019

Knight Frank Thailand research about the selling price of condominiums in Ramkhamhaeng found that the selling price has continuously increased. As of mid-2019, the average selling price of Grade B condominiums was 98,323 baht per square metre, increasing from 2014’s average price of 74,292 baht per square metre. The average rise of condominium prices from the 2014 to mid-2019, a 5-year period, has a compound annual growth rate (CAGR) of 7.2 percent per year.

The average selling price of grade B condominiums reached its highest point in 2017 with an increase of 10.5 percent from 2016. The average selling price of grade C condominiums in the Ramkhamhaeng area during the middle of 2019 was 63,705 baht per square metre, increasing from 2014, which had an average price of 53,402 baht per square metre. The rise of condominiums from 2014 to mid-2019, or in 5 years, experienced a compound annual growth rate (CAGR) of 4.3 percent per year.

Image 5: Average Selling Prices of Condominium in Ramkhamhaeng Area, 2011 to Mid-2019

Niche MONO Ramkhamhaeng

Niche MONO Ramkhamhaeng is a project that addresses every lifestyle need, from work and exercise to hanging out at popular stores. It caters to a new generation of urban dwellers whose lifestyles change in every aspect of life. The location also offers convenience, featuring a complete array of facilities. The unit design has also been configured for the greatest functionality.

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