High land, condominium prices fetched near Chao Phraya due to strong demand, limited plot availability
Property developers that have introduced condominium projects along the Chao Phraya River over the past four years have seen riverside land and condo prices rise much more sharply than in other locations in Bangkok.
A survey by The Nation found that 12,394 units in 15 condominium projects launched in the vicinity of the Chao Phraya since the start of 2010 were at the time of launch worth more than Bt85.75 billion combined.
Some of them have already been completed and the units transferred to customers, while others are still under construction.
The Chao Phraya riverside in Phra Nakhon district – from Kiak Kai to Bang Pho, Tao Pun, Charoen Krung and Rama III – has seen seven condominium projects launched since the beginning of 2011, comprising 6,229 units worth Bt35.7 billion.
The projects are: the 397-unit, Bt6-billion Pano Riverside by Krungthep Land; the 224-unit, Bt7-billion Canapaya Residences Rama 3; the Supalai Prema Riva, which has 871 units on Rama III worth Bt5.5 billion in total; the 2,405-unit, Bt5.5-billion Lumpini Park Riverside Rama; the 1,088-unit, Bt3.8-billion U Delight Residence Riverfront Rama 3 by Grand Unity Development; the 950-unit, Bt6.5-billion 333 Riverside by Land & Houses; and the Bt1.4-billion Breeze Narathivas by Eastern Star Real Estate, which comprises 294 units.
Meanwhile, the riverside on the Thon Buri side of the Chao Phray – from Ratchburana Road to Charoen Nakorn, through to Charan Sanitwong – has seen eight condominium projects launched since 2010, comprising 6,165 units and a combined value of Bt50.05 billion.
They are: Pruksa Real Estate’s 1,268-unit Ivy River Ratchaburana, worth Bt2.85 billion; the same developer’s 1,820-unit Chapter One Ratchaburana, worth Bt4 billion; the 379-unit, Bt10-billion Magnolias Waterfront Residences Charoen Nakorn by Magnolias Quality Development Corp; the 350-unit, Bt7-billion Landmark Waterfront by Country Group; the 833-unit The River by Raimon Land, worth Bt15 billion; the Supalai River Resort by Supalai, comprising 906 units worth Bt3.5 billion; the 123-unit My Resort @ River by Equity Residential, worth Bt2 billion; and the 486-unit Watermark Chaopraya River by Major Development, valued at Bt5.7 billion.
Moreover, residential property companies have bought land worth up to Bt20 billion combined on the Chao Phraya, which they plan to develop during the remainder of this year or early 2015.
They include Quality Houses, TCC Land – owned by beverage tycoon Charoen Sirivadhanabhakdi, who is also developing the Asiatique the Riverfront project – and investors who will also bid for a 10-rai (1.6 hectares) plot owned by Serm Suk.
Despite the number of condo units launched on both the Phra Nakhon and Thon Buri sides of the river, supply is still lower than demand because the amount of land available close to the river for residential development remains limited, said Pruksa Real Estate managing director Prasert Taedullayasatit.
Meanwhile, the prices of condominiums in projects launched in recent years and already transferred to Pruksa customers have increased by more than 50 per cent, he said.
For example, Ivy River Ratchaburana started with a presale price of Bt50,000 per square metre in 2009, but now resells at Bt80,000.
Chapter One Ratchaburana – another Pruksa project – had a presale price of Bt999,000 per unit in the year 2012. It successfully sold 90 per cent of the units, which were transferred to customers in the second quarter of this year, but the remaining 10 per cent is now up for sale at Bt1.89 million per unit, for a rise of 89 per cent in just two years.
The price of land located close to the Chao Phaya river has also increased, from an average of Bt50,000 per square wah (4 square metres) in 2011 to between Bt150,000 and Bt200,000 per square wah this year, Prasert said.
Condominium sale prices in these locations have risen from an average of Bt50,000 per square metre five years ago to between Bt120,000 and Bt200,000 per square metre this year.
The latest project, Magnolias Waterfront Residences Charoen Nakorn, offers the highest price of all – at Bt350,000 per square metre.
A survey by Colliers International (Thailand) shows that between 2004 and the first half of this year condominium launches on the Chao Phraya totalled 16,450 units, compared with just 2,700 units before the economic crisis in 1997.
Retail businesses have also been expanding their riverside investment since 2010, the first being Asiatique Riverfront, followed by Siam Piwat group’s Iconsiam, with the Pichaironarong-Songkram family – who own Chaopraya Express Boat – also expanding their investment by developing a Bt500-million community mall on 3 rai of land at Maharat port.
CB Richard Ellis (Thailand)’s managing director, Aliwassa Pathnadabutr, said limited availability of land around the Chao Phraya had boosted land prices in light of strong demand for both commercial buildings and condominiums in these locations.