The Chao Phraya riverside area is gaining in popularity for its waterfront lifestyle and scenic views, according to research by Knight Frank Thailand.
The research found that many luxury hotels, high-rise condominiums, and corporate towers had risen on both sides of the river in Bangkok, making the area a prime spot for property development.
The riverside area encompasses Charoenkrung, Charoennakorn and Rama III roads. It also includes the fringe of Sathorn-Silom and Narathiwas Ratchanakarin roads.
The area features a comprehensive range of facilities and amenities such as restaurants, international schools, world-class hospitals, retail outlets, and shopping malls.
Recently, there have been several community-mall developments, including Sena Fest, Vue and The Vanilla Moon Bangkok, in the Charoenkrung and Charoennakorn neighbourhoods. These projects will provide a variety of goods and services to riverside residents, adding to the neighbourhoods’ increasingly affluent community, the property consultancy said.
Statistics from Knight Frank Thailand show that the cumulative supply of Bangkok riverside condominiums was about 19,807 units as of the third quarter of this year, an increase of 18.7 per cent from the end of 2011.
About 3,117 new condominium units were launched during the third quarter. Rama III Road contained the highest number of new condos, with about 1,388 units or 45 per cent of the total. This was followed by the Krung Thonburi area with around 23 per cent and Narathiwas Ratchanakarin Road with about 20 per cent.
“We have seen new luxury condominiums being launched in the riverside area targeted for Thai buyers as both personal residences and investments,” said Risinee Sarikaputra, the company’s associate director of research and valuation. “There will be an additional supply marketed towards other Asian condominium buyers from Singapore, Hong Kong, and mainland China.”
The demand for condominiums was recorded at 2,404 units in the third quarter, a significant increase of 1,633 from just 771 units at the end of 2011. The majority of demand in this period was for condominiums on Rama III Road, where 1,085 units were sold. Most of them were in recently launched projects such as Supalai Prima Riva and D Condo Sathupradit 49.
Another area where demand was high during the quarter was Krung Thonburi, where about 605 new units were sold.
The overall take-up rate for condominium projects in the riverside area during the third quarter was about 45 per cent, a strong increase from just 22 per cent at the end of last year. The take-up rate in the Sathorn-Silom area was the highest at about 91 per cent, followed by Krung Thonburi with an 83-per-cent take-up rate.
There are many condominium developments in Sathorn-Silom, as it is an established business area with easy access to Sukhumvit, Rama III and the riverside area. In addition, many condominium projects are scheduled to be completed in Krung Thonburi, thanks to the new mass-transit extensions across the river that will increase the accessibility from Thon Buri to the central business districts.
The average selling price in the riverside area was about Bt102,730 per square metre as of the third quarter. The highest average price was in Sathorn-Silom, at Bt117,224 per square metre. Narathiwas Road ranked second with an average selling price of Bt115,813 per square metre.
Knight Frank foresees about 400 new condominium units being launched in Bangkok’s riverside area in 2013, including a new high-rise project called The Breeze on Narathiwas Road by listed developer Eastern Star and a low-rise project, The Wing Sathorn, on Krung Thonburi Road.
Nearly 2,600 condominium units are scheduled to be completed by 2015; this figure includes seven projects in Bangkok’s riverside area.