Knight Frank Thailand reveals the great potential of Bangkok’s latest residential area, ‘Taopoon-Bangson’. ‘Bangsue’ is near Taopoon-Bangson, an area that will become the new central hub for transportation and businesses in Bangkok and Thailand. The condominium market in Taopoon being developed covers the whole area surrounding Bangsue station. It is growing in supply, demand, and pricing.
Mr. Phanom Kanjanathiemthao, Managing Director of Knight Frank Chartered (Thailand) Co., Ltd., states that Bangsue is being developed to become the center of railways and transportation for Bangkok and for the country. This follows the government and State Railway of Thailand’s development plan. Bangsue station is set to become the central railway terminal for the two high-speed rail, including the northern line ( to Chiang Mai), the Bangkok-Hua Hin line, the standard double track rail line (Standard Gauge, rail size of 1.435 meters). The Bangkok-Nong Kai line, with 1m tracks, (Meter Gauge) serves as a connection to the Northern Line, North-eastern Line, and Southern Line. Bangsue station will also become the centre of the Bangkok Mass Transit System (BTS).
Mr. Phanom added that the State Railway of Thailand is still in the planning process for developing the ground around Bangsue Grand Station. The area of 305.5 Rai shows potential for business development. This new business area will be divided into 4 zones; Zone A 35 Rais of land set to become the leading complete modern business hub with hotels, and a food plaza for tourists and business. There’s Zone B, 78 Rais of land that are planned to become the ‘latest commercial area’ for both retail and wholesale serving ASEAN. Zone C, 105 Rais of land will focus on residential areas, work, and relaxation. And Zone D, 87.5 Rais of land will be a center for transportation and a transferring point’, connecting between the BTS and the MRT which extends to Bangsue Grand Station and areas of Zone A, B, and C.
The condominium market in Taopoon covers the area around Bangsue station, including Pracha Rat Sai 1 Road, Pracha Rat Sai 2 Road, Pracha Chuen Road, Krung Thep-Nonthaburi Road from Soi 1-39 and Soi 2-50. The total supply is approximately 10,878 units. Condominium development in this area began in 2011; 803 units were on the market that year. In 2012, there were 1,257 units offered at three different condominium projects. In 2013, there were 3,781 units selling. And in 2014, the largest amount of condominium was for sale at 5,037 units, Mr. Phanom added.
Mr. Phanom explained that demand for condominiums in this area is growing well. So far, more than 8,768 units out of 10,878 units (80.6%) have been sold, and there are only 2,110 units left. The sales rate for condominium averages 1,800- 2,000 units sold annually.
Graph 1
Source: Research and Consultancy Department, Knight Frank Chartered (Thailand) Co., Ltd.
The selling price for condominiums in this area is likely to increase. At present, the average price of condominium in the area is 88,000 baht per sq.m. It increased from 66,360 baht per sq.m in 2011. The price is likely to increase to over 100,000 baht per sq.m. Many projects in this area have already opened for sale at over 120,000 baht per sq.m, Mr. Phanom added.
Graph 2
Source: Knight Frank Thailand Research & Consultancy
Furthermore, an increasing investment at the current land price of over 350,000 baht per sq.m will affect the selling price of future condominium projects at an estimated average selling price at 100,000 baht per sq.m. Yet there is strong demand for land development and land developers due to the great potential of future growth. The completion of Bangsue Grand Station and Railways systems in 2019 will affect the demand as consumers migrate to the Taopoon-Bangsue area. This will result in an increase in the pricing of condominium to 120,000 baht per sq.m or 150,000 baht per sq.m in some projects.
Mr. Phanom concluded that the Metropolitan Rapid Transit (MRT) Purple Line will be completed and ready for testing by May, and will be opened for service this August. The MRT Blue Line between Bangsue-Taopoon stations will be opened for services this August and will connect the MRT Purple Line and other railway systems. This shows great potential and convenience for traveling and living in the Taopoon area.
