RAMA IV Road is becoming a new landmark in Bangkok with major property companies developing mixed-use complexes of luxury hotels,office buildings and retail outlets.
According to a Nation survey, the stretch on Rama IV Road between Lumpini Park and Klong Toei is witnessing a construction boom of both residential and commercial buildings.
TCC Assets, the property arm of beverage tycoon Charoen Sirivadhanabhakdi, has set an investment budget of Bt154 billion for several mixed-use projects at the location and surrounding areas.
The Port Authority of Thailand is planning a mixed-use project on 223 rai in Klong Toei, containing an office building, logistics and warehouse facilities, and a shopping mall. The Bt100-billion project is currently under study while negotiations have begun with the existing lessees on land transfer. The plan will be finalised this year with joint development with private developers as an option.
Central Pattana, property arm of the Chirathivat family, has teamed up with Dusit Thani Group to re-develop the Dusit Thani Hotel at the junction of Rama IV and Silom roads, after winning a 30-year renewal contract on the site from the Crown Property Bureau.
A mixed-used project worth Bt36.7 billion is planned, comprising a residential condominium, office premises, retail facilities in addition to the hotel.
Pace Development Corp is developing a 53-storey luxury condominium project, Nimit Langsuan. Construction of the Bt7.5-billion property will be completed next year.
Meanwhile, the Athakravi Group, developer of the Manorom building on Rama IV road is completing the construction of a Bt2-billion community mall nearby.
Other condominium projects launched in the area since the beginning of 2014 include the Condolette Pixel developed by Pruksa Real Estate, The Portrail Rama IV-Sukhumvit 38 by Krung Thai Land Development, Land & House's The Room Rama IV , the Aspire Rama IV of AP (Thailand), and Ananda Development’s Bt6.5-billion Ideo Q. These projects have a total market value of over Bt50 billion.
Aliwassa Pathnadabutr, managing director of CB Richard Ellis (Thailand), said Rama IV Road is a new destination for commercial and residential properties with three major plots of land being developed and projects due for completion between now and 2025.
It will be a new commercial and residential landmark in Bangkok, she added.
Amid the aggressive investments, land prices on Rama IV road have been increasing by an average of 8.9 per cent a year since 2015, said Ananda Development Plc’s chief executive officer Chanond Reuangkritiya.
The average sales price of condominium units on Rama IV road has now risen to Bt250,000 per square metre. The location has a total supply of 2,430 units as of the first quarter of this year with up to 84 per cent sold, he said.
A survey by Baania,com shows there are 21 office buildings with total space of 530,000 square metres within a radius of 800 metres from Rama IV road. Rentals of these commercial properties average Bt525 per square metre.
The location also saw the launches of 115 condominium projects with 29,700 units. Construction of 74 of these projects with a total of 14,100 units are due for completion before 2012.
Development of the other 41 projects with a total of 5,600 units, are still under way.