Charoen Nakhon Emerges as New Commercial Centre, Adding to the Robustness of the Area
The opening of Icon Siam, which is a large shopping centre, has added a sense of robustness to the Charoen Nakhon area. After being open for one year, it was found that Icon Siam attracted 150,000 people per day, which exceeds the initial target.
This figure is likely to increase as well. As such, the project’s Phase 2 will be under development, to be comprised of a 244-room hotel, Hilton Garden Inn Bangkok, and a large supermarket. In addition, Charoen Nakhon also features the development of a large mixed-use project, Asiatique The Riverfront II, which is by TCC Land, on a
16-rai plot. Expected to be completed and open in 2022, the project will include 10,000 square metres of retail space, a 5-star hotel with 800 rooms and a seminar room.
Development of Public Transportation Systems in Charoen Nakhon
Development of the Gold Line train system, which connects with the Light Green Line at Krung Thon Buri Station to Charoen Nakhon, brings comfort and convenience in rail travel to the area. It also affords seamless travel to central business areas like Sathorn and Silom.
Ms. Risinee Sarikaputra, Director of Research at Knight Frank Thailand, said that the areas around Charoen Nakhon, Krung Thon Buri and Talat Phlu are ones that operators are interested in because they have commercial developments and large-scale retail projects, as described above. It was found that the supply of condominiums in this area totalled 33,197 units.
In the first 11 months of 2019, there were up to 3,611 new condominiums launched for sale. As of November 2019, there were 25,458 condominiums units sold from a total of 33,197 units, representing a sales rate of 76.7 percent. There are approximately 7,739 units remaining for sale. Buyers of condominiums in Charoen Nakhon, Krung Thon Buri and Talat Phlu are mostly residents of the area, including civil servants working in the area. For condominiums located in Krung Thon Buri and Talat Phlu, the buyers are usually working in the central business district; given that Krung Thon Buri and Talat Phlu are located on the Green Line, residents enjoy convenient access to the business centres of Sathorn and Silom.
There are also investors who buy condominiums in this area to rent out or to keep as longer term assets. Condominium prices are likely to increase in the future because of the area’s many large-scale project developments; once completed, they would add to the area’s convenience.
Graph 1
Demand, Supply and Average Selling Price of Condominiums in Charoen Nakhon, Krung Thon Buri and Talat Phlu, 2010 to November 2019
Based on Knight Frank Thailand’s research, the selling price of condominiums in this area is divided into two groups, which are the selling price of condominiums in Talat Phlu and the selling price of condominiums in Charoen Nakhon and Krung Thon Buri. The majority of the condominiums in Talat Phlu are Grade B and Grade C, with an average selling price of Grade B condominiums, as of November 2019, at 94,425 baht per square metre. This is up from 2012, which had an average price of 77,154 baht per square metre. From 2012 to November 2019, the area experienced a 6-year Compound Annual Growth Rate or CAGR of 3.5 percent.
The average selling price of Grade C condominiums in Talat Phlu, as of November 2019, was 66,640 baht per square metre. This marked an increase from 2010, which had an average price of 51,596 baht per square metre. From 2010 to November 2019, the area experienced an 8-year Compound Annual Growth Rate or CAGR of 3.4 percent.
Graph 2
Average Selling Price of Condominiums in Talat Phlu, 2010 to November 2019
Most condominiums in Charoen Nakhon and Krung Thon Buri are Premium Grade, Grade A and Grade B. The average selling price of Premium Grade condominiums, as of November 2019, was 334,000 baht per square metre, which increased from 2014’s average price of 222,257 baht per square metre. From 2014 to November 2019, the area experienced a 4-year Compound Annual Growth Rate or CAGR of 11.2 percent.
The average selling price of Grade A condominiums in Charoen Nakhon and Krung Thon Buri, as of November 2019, was 164,000 baht per square metre, increasing from 2014’s average price of 125,000 baht per square metre. From 2014 to November 2019, the area experienced a 4-year Compound Annual Growth Rate or CAGR of 6.9 percent.
As for the average selling price of Grade B condominiums in Charoen Nakhon and Krung Thon Buri, as of November 2019, it stood at 122,513 baht per square metre, increasing from 2008’s average price of 81,077 baht per square metre. From 2008 to November 2019, the area experienced a 10-year Compound Annual Growth Rate or CAGR of 5.1 percent.
Graph 3
Average Selling Price of Condominiums in Charoen Nakhon and Krung Thon Buri, 2008 to November 2019
