The Phahon Yothin and Vibhavadi Rangsit area has turned into the most sought-after location for residential development in Bangkok due to several factors, and the BTS Light Green line extension will be added as the final missing piece.
Wide roads, big universities, a series of office buildings and other amenities, as well as a short drive to Don Mueang airport and easy access to expressways are the elements that have made the location increasingly attractive.
By the end of 2019, Bangkok will have its newest mass-transit line extension, the BTS Light Green (North) extension line, along Phahon Yothin Road. It will be the second extension to be opened this year following the MRT Dark Blue Line extension. The extension will increase accessibility and ease traffic on what has been known as one of the most congested roads in Bangkok.
Bang Sue Grand Station, which will be the largest transit hub in Asean, is also expected to be completed by 2021. It connects three mass-transit lines and effectively links the northern, western and southern parts of Bangkok. Mo Chit Complex, a mixed-use project with office and retail spaces, will be directly connected to the BTS Mo Chit station.
Another future development is expected from Central Pattana Plc, which has acquired a 46-rai land plot connecting Vibhavadi and Phahon Yothin roads, about 300m from the new BTS Phahon Yothin 24 station.
Numerous SMEs and multinational companies can be found on Phahon Yothin, while government enterprises and large Thai companies such as PTT and the SCB have their headquarters located on Vibhavadi road.
In addition to office buildings, the area has many other value-added characteristics, with retail centres such as Central Ladprao, Major Ratchayothin Complex and a major transport hub — Bangkok Bus Terminal Chatuchak (Mo Chit 2) — all within a 15-to-20-minute drive to Don Mueang International Airport.
A new Bangkok city plan scheduled to be come into effect by the end of 2020 at the latest will lead to greater use of land for property development, especially along the new mass transit lines and extensions.
Areas around the extension of the BTS Light Green Line will benefit from a higher floor area ratio (FAR) — the result of remapped zone colours — allowing developers to use land more efficiently.
The ongoing rapid development of the area is attracting developers eager to launch new condominium projects along the BTS Light Green extension line, where vacant land plots can be purchased at reasonable prices.
In the second quarter of 2019, the under-construction condominium projects in the Phahon Yothin/Vibhavadi area have achieved the highest sales rate, compared to other midtown areas of Bangkok even though the average asking price in the midtown area is as high as 153,000 baht per sq m.
Based on CBRE Research's data, 75% of all 12,800 units from 27 condominium projects have been sold. The accumulation of many ongoing projects makes the area one of the most popular midtown locations.
In the next few years, infrastructure improvement and large-scale developments in Phahon Yothin/Vibhavadi will increase the demand for residential properties from both end-users and buy-to-rent investors.
As the landscape of Phahon Yothin and Vibhavadi changes, developers will make the most of this opportunity to develop projects that meet the emerging demand in the area.
Thanawin Suppakarnpanich is an analyst at Research and Consulting, CBRE Thailand. He can be reached at bangkok@cbre.co.th Facebook: CBREThailand LinkedIn: CBRE Thailand LINE@: CBRE Thailand Twitter: @CBREThailand Website: www.cbre.co.th