TCC Assets (Thailand), a property arm owned by the Sirivadhanabhakdi family, is transforming Rama IV Road with the launch of the 113-billion-baht One Bangkok mixed-use project, following its investment of nearly 39 billion baht in developing six projects along the same road.
Panote Sirivadhanabhakdi, the company's director, said One Bangkok, set to add 500,000 square metres of new office space, would not lead to an oversupply, but instead pose a challenge for older office buildings.
"The real estate market is shifting towards a flight to quality," he said. "In Singapore, office towers aged over 20 years old are now considered obsolete and require demolition and redevelopment as they fail to meet tenants' requirements."
Panote Sirivadhanabhakdi, TCC Assets (Thailand) director, says One Bangkok is set to add 500,000 square metres of new office space. (Photo supplied)
In Thailand, such buildings represented 60% of the office market. Tenants in those buildings will be seeking new office spaces that meet their demand.
The government's initiative to position Bangkok as a headquarters would also further drive office demand, said Mr Panote, also group chief executive of Thai-owned Singapore-based property firm Frasers Property Limited.
"Over the past decade, as we have developed office spaces in various projects, we have strategically invested in irreplaceable locations, particularly along mass transit systems like the MRT," he added.
The MRT serves as the circle line of Bangkok, connecting the city's inner areas, the central business district and the Thon Buri area in a full loop.
One stretch of the MRT line runs along Rama IV Road, where TCC has developed six projects over the past 10 years, spanning a distance of four kilometres and encompassing five stations from MRT Samyan Station to MRT Queen Sirikit National Convention Centre Station.
"Each project complements the others as they cater to different targets," he said.
"Samyan Mitrtown is alcohol-free as it serves students while Silom Edge offers flexible spaces, opening 24 hours as part of our new experiment."
FYI Center, completed in 2016, was the company's first new development on Rama IV Road and has been proven to be a new Grade A office in Bangkok.
Meanwhile, The Parq, launched in mid-2020, has achieved an occupancy of 90% due to features meeting new requirements post-pandemic.
Other projects on this road include Thaibev Quarter, Queen Sirikit National Convention Center and One Bangkok, slated for the fourth quarter of this year.
These seven projects will collectively span a total gross floor area of approximately 2.95 million sq m and a total lettable area of around 1.2 million sq m, with a combined investment of 152 billion baht.
"The potential increase of real estate value in Thailand is significant. In Singapore, the value per sq m is more than 10 times that of Thailand but the income potential is only about four times higher. Therefore, Thailand's economy still has ample room for further growth," he said.