The areas around Charoen Nakhon, Krung Thon Buri and Talat Phlu are attracting more attention from condominium developers because they are home to numerous commercial developments and large-scale retail projects, according to Risinee Sarikaputra, director of research at Knight Frank Thailand.
The supply of condominiums in the three districts on the west side of the Chao Phraya River totals 33,197 units, including 3,611 new units launched for sale in the first 11 months of 2019. As of November 2019, there were 25,458 units sold from the total of 33,197, representing a sales rate of 76.7%.
Buyers of condominiums in Charoen Nakhon, Krung Thon Buri and Talat Phlu are mostly local residents, including civil servants working in the area. Many buyers in Krung Thon Buri and Talat Phlu work in the central business district, as the Green Line offers convenient access to the business centres of Sathon 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 developments; once completed, they will add to the area's appeal.
Knight Frank Thailand research shows that selling prices in Talat Phlu are significantly lower than in Charoen Nakhon and Krung Thon Buri. Most of the condos in Talat Phlu are Grade B and Grade C, with Grade B units averaging 94,425 baht per square metre as of November 2019. This compares with 77,154 baht in 2012, representing a compound annual growth rate (CAGR) of 3.5%.
The average selling price of Grade C condominiums in Talat Phlu was 66,640 baht per square metre, compared with 51,596 baht in 2010, for a CAGR of 3.4%.
Most condominiums in Charoen Nakhon and Krung Thon Buri are Premium, Grade A and B. The average selling price of premium condominiums was 334,000 baht per square metre, compared with 222,257 baht in 2014, for a CAGR of 11.2%.
The average selling price of Grade A condominiums was 164,000 baht per square metre, compared with 125,000 baht in 2014, for a CAGR of 6.9%. Grade B condominiums averaged 122,513 baht per square metre, up from 81,077 baht in 2008, for a CAGR of 5.1%.
The opening of Iconsiam, the largest shopping centre in the capital to date, has added a sense of robustness to the Charoen Nakhon area. In its first year, Iconsiam attracted an average of 150,000 people per day, which exceeded its initial target. This figure is likely to increase with the addition of a second phase now under development. It will comprise the 244-room Hilton Garden Inn Bangkok hotel and a large supermarket.
In addition, Charoen Nakhon will be home to Asiatique The Riverfront II by TCC Land, now being developed on a 16-rai plot. Expected to open in 2022, the mixed-use project will include 10,000 square metres of retail space, a 5-star hotel with 800 rooms and a seminar room.
As well, the development of the Gold Line monorail system, expected to open in mid-2020 will be another plus for the area. It will connect with the Light Green Line at Krung Thon Buri Station, providing more comfort and convenience for rail travellers. It will also afford seamless travel to central business areas including Sathon and Silom.