Bangkok’s triangle between Asoke, Rama IX junction, and Ratchadaphisek Road, is a popular location for middle- to upper-segment condominiums in the Bt2 million-Bt10 million price range, following the construction of new office buildings in the area, a survey has been found early this week.
Rama IX junction alone has four condominium projects under development, worth more than Bt10 billion combined: the Grand Rama 9 by G Land Group; the Condolette Midst Rama 9 by Pruksa Real Estate; Ananda Development's Ideo Mobi Rama 9; and AP (Thailand)'s Rhythm Asoke.
The same location already has the Lumpini Place Rama 9 by LPN Development, and Areeya Property's A Space Rama 9.
This makes a total of more than 1,000 units in that area.
Meanwhile, Ratchadaphisek to Rama IX junction up to Asoke is also witnessing a number of condominium launches and new office-building investment worth more than Bt200 billion combined.
For example, the head offices of American International Assurance, the Stock Exchange of Thailand and Central - plus a department store - are under construction in the area, with completion dates scheduled for this year and next.
The ninth tower of Grand Rama IX and the G Land Tower are also under construction.
The buildings have a combined floor space of 800,000 square metres and entail an overall investment of more than Bt80 billion.
Following the number of new office buildings due to open in the next 16 months, a number of leading property developers - Pruksa Real Estate, Sansiri, Noble Development, AP (Thailand), Land & Houses and Supalai - have launched residential projects to support the new demand in the Ratchada-Rama IX-Asoke area.
The combined value of these new projects is more than Bt100 billion.
Noble Development has launched the Bt2.8-billion Noble Revolve Ratchada 2, while Pruksa Real Estate has introduced the Condolette Midst Rama 9 condominium, worth up to Bt2 billion and comprising 433 units.
Pruksa's project follows the successful launch two years ago of its Bt1.35-billion Ivy Ampio condominium, which has been sold out. Ivy Ampio units will be transferred to customers late this year and early next.
Supalai, meanwhile, has introduced 10 condominiums together worth more than Bt10 billion on Ratchadaphisek Road since the beginning of last year. They have been sold this year and will be completed during 2014.
AP (Thailand)'s latest condominium, the Rhythm Asoke, is worth Bt1.5 billion and comprises 385 units.
MRT system a major draw
The main reason the Rama IX junction through to Asoke is a popular location for office property, as well as for residential projects, is its proximity to the MRT underground rail system.
The area also continues to have more freehold land available for the development of residential projects than areas such as Sukhumvit and Rama I, located close to Siam Square, where space is limited and land prices are higher than those suitable for homes costing no more than Bt200,000 per square metre.
"The main problem for property firms is to find freehold land located close to the mass- transit system at a price no higher than for the development of condominium units costing up to Bt200,000 per square metre," said Pruksa Real Estate managing director Prasert Taedullayasatit.
The number of new condominiums and office buildings opening at the Rama IX junction through to Ratchadaphisek Road has boosted the price of land in the area to an average of Bt800,000 per square wah (Bt200,000 per square metre), up 33 per cent from Bt600,000 in 2011.
Condominium prices, meanwhile, have risen by an average of 20 per cent over the same period.
This has driven new project launches for condos costing more than Bt2 million per unit, or an average of Bt100,000 per square metre, according to this survey.