Government Centre attracts housing rush

Market value of new developments in Chaeng Wattana area reaches Bt100 bn

The area of northern Bangkok surrounding Rama V, Rattanathibet and Chaeng Wattana Roads is growing in importance as a centre of residential property development as this year's opening of the new Government Centre draws closer.

A survey by The Nation this week found that developers have launched new residential projects in the area with a combined market value of about Bt100 billion. Half of them are detached housing projects and the rest condominiums and others, springing up in anticipation of strong demand for nearby housing when the Government Centre opens.

The new centre is a Bt19-billion civil service complex on Chaeng Wattana Road that is now nearing completion. The 400,000-square-metre complex will house 35 government agencies and will become the workplace for about 30,000 civil servants.

Both detached housing and condominium projects in the area are not surprisingly targeted at state employees whose workplace will change when government offices move from other parts of the city to the new centre.

The Government Centre has also attracted a sizeable shift into the area by private-sector organisations. The University of the Thai Chamber of Commerce, for one, plans to open a new branch in Chaeng Wattana Road near the Pak Kret junction. Popular department stores and discount stores are also setting up in the area, including Central, Tesco Lotus, Big C Supercentre, and Makro. Carrefour opened on Chaeng Wattana Road some years ago. The activity has also attracted new bank branches.

The Nation's survey found 14 detached-house projects, with a combined market value of about Bt25.2 billion, being developed in the area by the "top ten" property firms that are listed on the Stock Exchange of Thailand. The rest, with a value of nearly Bt75 billion, include both condominiums and detached housing projects being developed by property firms not listed in the capital market.

The projects offer a wide range of residences priced between Bt1.5 million and Bt20 million per unit.

Sansiri launched a detached-house project called Burasiri Ratchapreuk-Chaeng Wattana, worth Bt1.2 billion, in December.

Quality Houses is developing two detached-house projects on Chaeng Wattana Road. They are Laddarom at Chaipreuk Chaeng Wattana Road, worth Bt2.01 billion, and Casa Ville on Ratchapreuk-Chaeng Wattana, worth Bt2.5 billion.

Property Perfect plans to develop both detached houses and apartments, with a total value of Bt4 billion, on Chaeng Wattana Road near Pak Kret junction this year. This will be close to the new branch of the University of the Thai Chamber of Commerce.

Asian Property Development launched The City at Rattanathibet, worth Bt1.4 billion, in December.

Vilailux Development, a property arm of the Samart Group, which is owned by the Vilailux family, is planning a condominium project worth Bt1 billion on a 10-rai (1.6-hectare) plot on Chaeng Wattana Road.

The company's executive vice president, Oraphan Laoprapassorn, said research had shown that demand for residential units, especially condominiums, was about to grow in the Chaeng Wattana Road area, even though the purchasing power of the buyers involved would be lower than those seeking residences in the central business district. However, fewer property developers have been drawn to the Chaeng Wattana area, and this makes Vilailux more confident about launching its condominium project, Oraphan said.

The company will launch presales and begin construction in the second half of this year.

Preuksa Real Estate's chief operating officer Prasert Taedullayasatit said his company's project, The Seed on Chaeng Wattana Road, had presold all of its 210 units after last year's launch.

Demand for residences in the area began to grow after the decision to build the Government Centre, he said.

Asian Property Development, one of the property firms launching a detached-house project in the area, described demand for residences in the Ratchapreuk-Ratanathibet-Rama V area as growing strongly. The company's senior vice president, Visanu Suchartlumpong, said it presold 30 units from a total of 216 in two weeks after launching The City Ratanathibet.

Customer demand is believed to be focused on detached houses priced between Bt5 million and Bt10 million.

"We believe this location will attract high competition when the government approves the plan to build an electric-train route from Bang Sue to Bang Yai. This location may become popular enough to challenge other Bangkok locations," he said.

Land prices in the area have also increased by up to 20 per since last year, with average prices now between Bt50,000 and Bt60,000 per square wah (per 4 square metres).

Research last year by the Agency for Real Estate Affairs (AREA) found that residential projects planned in the Ratchapreuk-Rattanathibet-Rama V area were valued at about Bt100 billion, and included condominiums, townhouses, double houses and detached houses.

AREA said Property Perfect was developing 3,146 detached houses in the area with a combined value of Bt13.3 billion. To date, the company has sold 2,076 units. Land & Houses is building 2,923 detached houses in the area worth Bt12.9 billion, and Preuksa Real Estate has launched projects offering 6,457 detached houses with a total value of Bt11.1 billion.

The main target for residential development in the Rama V-Rattanathibet-Chaeng Wattana area is middle-income earners. The price of detached houses ranges from Bt2 million to Bt5 million, it said.

By Somluck Srimalee
The Nation
Published on January 30, 2009