Explore "Inner core of Bangkok"
The most captivating areas for living and future investment
published : 30 Aug 2016 at 14:41
Bangkok, a capital city of Thailand, is renowned as a strategic location in ASEAN, as it is a hub of transportation, a hub of business and industry, a hub of art & culture, and a hub of tourism. Over the past decade, Bangkok has rapidly grown following the launch of the Suvarnabhumi International Airport, ranked as the world's 7 largest airport covering area of 2980 hectares (7,400 acres), Bangkok's main mass transit lines (BTS skytrain and MRT subway) running through the heart of Bangkok, where you see the most developed areas in terms of business, tourism, and education.
Areas along the main mass transit routes has developed and changed dramatically, mainly due to a significant increase in Thai and expatriate populations in Bangkok. Many skyscrapers and mega projects by the public and private sectors as well as Thai and foreign business investments have led to a leap in growth in land prices along electric train routes and land in the inner core of Bangkok. These key factors will undoubtedly drive Bangkok to enter into a new chapter and become a city which is full of potential and opportunity.
Nevertheless, Bangkok continues to move forward for further development. Within 5 years, you will experience a striking phenomenon which will significantly change the history of Bangkok and orchestrate a quantum leap including the extension of 10 electric train routes connecting all areas in Bangkok to the main existing mass transit routes which will be the feeders to shorten travel time for people commuting from various outlying areas to the inner city, making their journeys more convenient. Furthermore, the influx of ASEAN Economic Community (AEC) will help bring more foreigners to invest in Thailand. The government's high-speed train projects, comprising 4 routes connecting to the main cities including North Line (Bangkok - Phitsanulok), East Line (Bangkok - Rayong), Northeast Line (Bangkok - Nakhon Ratchasima) and South Line (Bangkok - Hua Hin) will also make Bangkok become a major "Hub of Logistics" in ASEAN community which will facilitate both passenger and goods transportation in the region.
Let's explore the areas in Bangkok with the highest growth opportunity.
"Five years from now... which areas in Bangkok will have the highest potential and opportunity to grow by leaps and bounds?"
A zone in Bangkok with a tendency to develop the most is the "inner core of Bangkok" or the epicentre of the city. One of the indicators of such development is the main BTS route along Sukhumvit Road. This route has an interchange station with the MRT at the Asoke junction. In the west of this junction, it passes important areas and places such as Ploenchit, Chidlom and Siam Paragon. In the east, it passes Phrom Phong, The EM District, and Thong Lor. In the north, it passes the Makkasan Airport Rail Link Station at MRT Petchaburi, connecting downtown to Suvarnabhumi International Airport as well as passing the "superstation" of the MRT Orange Line at MRT Thailand Cultural Center in Ratchada, Bangkok's new CBD where you find many significant business landmarks including the new Stock Exchange of Thailand Head Quarter and the Embassy of the People's Republic of China as well as other future megaprojects. In the south, the train passes Silom and Sathon. All main electric train routes in the heart of Bangkok pass many important places such as high-end shopping malls, office buildings, embassies, and 5-6 star hotels.
By 2021, the launch of 10 electric train routes will take people from all areas in Bangkok to the inner city through the main existing mass transit routes. The Airport Link will also increase convenience for both domestic air travellers (connecting to Don Muang Airport) and international air travellers (connecting to Suvarnabhumi Airport). The four high-speed train projects will help bring people from all regions to the capital and the MRT Orange Line (Thailand Cultural Centre -- Min Buri) will have an interchange station that connects eastern and western Bangkok. "The Super Tower," a 125-storey building and the future tallest building in ASEAN will be a landmark of the inner core of Bangkok and another key magnet that leads a huge number of people into the city.
The mega projects mentioned above will make the inner core of Bangkok the centre of living, starting from Siam, Chidlom, and Ploenchit -- the areas of high-end and luxury shopping malls and 5-6 star hotels -- to the upper part of Asoke where an interchange station is located and the middle part of Sukhumvit surrounded with public parks and large luxury department stores. The inner core of Bangkok stretches to the Ratchada area around the MRT Thailand Cultural Centre Station.
If you draw a line to connect the four locations -- Ploenchit, Asoke, Phrom Phong, and Ratchada, you will see a triangle in the heart of the city. Each area has its own identity but they share the same potential to be the most prime locations of the future surrounded by Bangkok's high-end facilities and amenities such as office buildings, leading shopping malls, schools, and hospitals. These areas have high value for investment in the age when real estate prices never stop increasing and land plots in the heart of the city are hard to find. The increase in real estate prices result the rental yield to rise 5-7%, higher than the interest rates today.
"Prices of condominiums along electric train lines are persistently skyrocketing and much higher than those located in other areas. In terms of investment, buying condominiums along the main mass transit lines that pass through inner core of Bangkok will offer higher rental yield than other condominiums. An average annual rental yield is around 5-7% with capital gain up to 12% per year." [Source: TarraBKK Research]
In addition, research from CBRE, Thailand's leading real estate research company, clearly indicates that "Inner Core of Bangkok" is a "Preferred Area" for expatriates. The report shows that expatriates continue to dominate the city's high-end rental market in the inner core of Bangkok, particularly in Sukhumvit, Sathorn, Silom and Central Lumpini (e.g. Ploenchit-Wireless) as these areas offer easy access to the BTS skytrain as well as a large number of malls and restaurants. The number of expatriates with work permits in Bangkok increased in Q1 2016 to almost 83,000, growing by 1.3%. Demand for expatriate apartments in the inner core of Bangkok remained strong with an occupancy rate of 95.1%, up by 0.7 percentage points Q-o-Q but down by 1.0 percentage points Y-o-Y. A total of 10,507 units were occupied. However, the supply of serviced apartments and rental condominiums in these areas is limited. So, this offers a great investment opportunity for individual owners who are buy-to-rent investors to market their units directly to renters.
"Future Trend of Inner Core of Bangkok: Ploenchit-Wittayu, Asoke, Phrom Phong, and Ratchada in the next 5 years"
Ploenchit-Wittayu, a prime area in the heart of the city nestled along the main electric train line, not only stands out as a location for high-end residences, but also a focal business area which is worth the investment. This captivating area is surrounded by Thailand's leading department stores such as Central Embassy, Central Chidlom, CentralWorld, Siam Paragon, embassies, and 6-star hotels. Furthermore, Ploenchit-Wittaya is another prime location that sees a significant increase in land price and currently become one of Bangkok's most expensive land prices in Bangkok. According to a survey by CBRE on land prices in central Bangkok, Ploenchit tops the most expensive land price at 1.9 million baht per square meter, rising by 13.7% per year. This fact significantly grabs attention of investors or even residents since the land prices keep rising each year.
The area's advantages, such as convenient transportation (close to the Ploenchit BTS Station and expressway entrances/exits), definitely make it an ideal location for conducting a business. Other highlights include Central Embassy, ‘Noble Ploenchit', one of Bangkok's super luxury condominium projects developed by Noble Development Public Co., Ltd. which will complete its construction in the near future targeting customers with high purchasing power. The front part of the project designed to be a lifestyle mall is adjacent to Sukhumvit Road. Stand out with the skywalk that connects BTS Phloen Chit to a 4-rai park of the project, plus ‘Private Lift' which is accessible for all units. In addition, the skywalk also connects to state-of-the-art "Park Ventures" -- The Ecoplex on Witthayu, the world-class standard office building and the 5-star Okura Prestige Bangkok Hotel located at the Ploenchit-Wireless intersection, Bank of Ayudhya branch at the Ploenchit junction and Park Nailert Hotel will play a significant role to elevate this area to become the real "Ploenchit City."
Asoke is widely known as a "Hub of Transportation" in Bangkok, as it is the focal point that connects BTS Asok to MRT Sukhumvit stations. This prime area also connects with Airport Link as well as other important infrastructure networks such as many expressways and in the future many projects will be developed in this area. Asoke is surrounded by leading office buildings, 6-star hotels, Korean Town and Italian restaurants, making it become a "multi-cultural area" where a huge number of foreigners prefer to reside, work and shop. Soon, there will be a Singha Estate project consisting of an A-grade office building, a utility building, retail spaces, and a small hotel. The project will help Asoke become a true residential and investment area for foreigners in the future.
Phrom Phong is known as a "Hub of High-end Shopping Malls" in the heart of Sukhumvit surrounded by "The EM District" -- a commercial zone and world-class entertainment center, consisting of the recently renovated Emporium, the newly developed EmQuartier and upcoming project EmSphere. All of these make Phrom Phong the best location in Sukhumvit. This area is also encircled by the Benjasiri Park, a green lung in the middle of Sukhumvit.
Phrom Phong is, therefore, a one-stop business center owing to an abundance of shopping malls, office buildings, residences, and a world-class entertainment center in the area. It is also a popular location among working expats, especially Japanese people, who are looking for a house to live in. Doing business in Phrom Phong is therefore very interesting. In the future, the opening of AEC will turn Phrom Phong into a residential and investment area for expats, obviously seen by the dramatic increase in foreigners' condominium ownership.
Ratchada is another attractive location with a rapid growth and will become Bangkok's new CBD, for example, the relocation of The Stock Exchange of Thailand head office in Ratchada which is a magnet of this area, "The Super Tower", a 125-storey, 615-metre building which will be the tallest building in ASEAN, Chinese and Korean embassies as well as the megaproject "Grand Rama 9" nestled on a 73-rai plot at Rama 9 intersection which will maximize the potential of this area to become Bangkok's new CBD to accommodate the expansion of property in the current CBD including Sukhumvit, Ploenchit, Silom, and Sathon which tends to grow consistently. In addition, Ratchada is a very bustling area surrounded by shopping malls, hotels, restaurants, and forthcoming project "SHOW DC", Thailand's first retail and entertainment mega-complex located on Jathurathit Road, near RCA. Most importantly, Ratchada will soon make a quantum leap and become a "Future Hub of Transportation" in Bangkok, following the construction of a "superstation" of the Orange Line at MRT Thailand Cultural Centre running from Thailand Cultural Center to Min Buri, making this area become an eye-catching location for both Thai and foreign investors. There are many empty land plots waiting to be developed here, particularly the government's land plots, which are being gradually sold to the private sector.
For those who are interested to invest in the best area in Bangkok, don't miss your chance to explore the forthcoming campaign "NOBLE INNER CORE LIVING" by Noble Development PCL, a dominant property developer in Thailand with a strong vision to "be different" -- a key driver to push Noble forward to reach its 26 years of tremendous success in developing residential projects only on the super selected locations in Bangkok, always within easy reach of centers of business and commerce and easy access to public transportation, ensuring the continued value of a Noble property.
Come explore 4 highlight projects located in the inner core of Bangkok with full of unrivalled opportunities as follows:
Noble Ploenchit -- Next to BTS Ploenchit. This high-end project comes with a skywalk connecting the project to BTS station, offering full facilities and private lifts, making it one of the most eye-catching projects in this area.
The current selling price of Noble Ploenchit is higher than five years ago by almost 70% when the company first launched the project. Noble Ploenchit is a true super luxury condominium in the heart of Ploenchit.
Noble BE19 is located in the heart of Asoke near the interchange station between BTS Asok and MRT Sukhumvit and connect to Airport Link. Located in the central business district -- a very popular area among foreigners and expats, this prime area comprises condominiums, office buildings, top international hotels and high-end residences with premium facilities. Highlights of Noble BE19 include a distinctive designed building portraying Noble's brand identity and two entrances/exits to Sukhumvit 19 and Sukhumvit 15.
Noble BE33 -- Near BTS Phrom Phong which directly reaches The EM District -- a project consisting of three world-class shopping complexes at the center of Sukhumvit including Emporium, EmQuartier and EmSphere. Noble BE33 is designed to be the focal point of every lifestyles equipped with comprehensive facilities and over 1,000-square meter green areas.
Noble Revolve Ratchada2 is just 80 meters from MRT Thailand Cultural Centre, opposite The Esplanade, a famous shopping mall in Ratchada. Located in the heart of Bangkok's new CBD, the project is encircled by many important places such as the Chinese embassy, the South Korean embassy, the Stock Exchange of Thailand head office, True Tower, and AIA Capital Center. More importantly, this area will soon have a large interchange station at MRT Thailand Cultural Centre, making this area become the most captivating area in the future.
The 42-storey building offers comprehensive facilities including an infinity edge pool, giving a stunning city view. Its revolving design concept focuses on minimalism which perfectly caters to urban lifestyle -- a new way to live in the heart of Ratchada.
In the next 5 years, the rapid development of these locations will definitely change the face of Bangkok. If you are looking for a prime residence in any of these areas either for living or investment, come explore "NOBLE INNER CORE LIVING" scheduled from 1-4 September 2016 at Siam Paragon, 1st Floor and enjoy special privileges up to 1.5 million baht* Get 50,000 baht discount for online registration at www.noblehome.com.