CBRE Reports Growth in Siriraj Area

CBRE Reports Growth in Siriraj Area Driven by New Developments Near Hospitals and MRT Stations
The Amarin Plans Launch of "Aroon Siriraj Triple Station" Amid Rising Demand

CBRE Thailand has announced that the Siriraj area is experiencing continuous growth, attributed to development plans surrounding the Thonburi and Siriraj railway stations. Demand for residential condominiums within a one-kilometer radius of Siriraj, particularly near the MRT stations, has reached an impressive average sales rate of 81% in the first half of 2024.

In light of this positive trend, The Amarin has outlined a three-year business plan focusing on the Siriraj Hospital area, with plans to launch a new project called "Aroon Siriraj Triple Station." This project aims to capitalize on favorable conditions, targeting the primary market of medical professionals and healthcare personnel, and will emphasize its proximity to three MRT lines.

Ms. Artitaya Kasemlawan, Head of Residential Sales - Project at CBRE Thailand, stated, "The Siriraj area is a prime location for the future." She referred to plans to develop the area surrounding Thonburi and Siriraj railway stations—between Mahidol University (Faculty of Medicine Siriraj Hospital) and SRTA—into a medical district covering approximately 148 rai. The initial phase will develop 14 rai into a hub for medical services, residential areas and a mixed-use community mall. This phase also aims to establish a significant transportation nexus for Bangkok, facilitating future connectivity to three MRT lines: the operational Blue Line and the planned Orange and Light Red Line extensions.

This mega-project positions Siriraj as a pivotal location within midtown Bangkok, supported by consistent demand from medical students, nurses, and healthcare professionals seeking residences near MRT stations that connect to the central business district (CBD). Consequently, condominiums in the vicinity of Siriraj, within a one-kilometer radius of the MRT, have achieved an average sales rate of 81% in the first half of 2024, driven by demand from both end-users and investors seeking properties that offer approximately 5%-6% annual returns, according to Ms. Artitaya.

Mr. Athavut Dhamcharoen, Managing Director of The Amarin Co., Ltd., stated that the positive factors affecting the area around Siriraj Hospital have prompted the company to continue developing new projects nearby. This includes low-rise condominiums under the “Aroon” brand, which will focus on quality, luxury, privacy and providing value that exceeds the price paid by customers. The company aims to target both primary residents and investors purchasing for rental opportunities.

Currently, The Amarin has accumulated over 400 rai of land for future development, including family-owned plots awaiting development in Bangkok and nearby provinces, particularly in areas close to Siriraj Hospital. Some of this land is ready for immediate development, while others will require the expiration of existing leases. Recently, the company announced plans to launch a new project under the Aroon brand: Aroon Siriraj Triple Station. This project will be a low-rise condominium valued at THB 800 million, comprising 170 units on Charansanitwong 32 Road, just 120 meters from the Blue Line MRT station at Bang Khun Non, which will eventually become an interchange connecting three MRT lines, including the future Orange and Light Red lines.

Mr. Athavut emphasized that the decision to continue developing in the Siriraj area stems from the significant demand for quality housing at reasonable prices. The primary target demographic includes medical professionals, hospital staff and investors interested in acquiring and renting properties.

"Since we launched our first project, The Amarin Residence, a serviced apartment, we achieved full occupancy within just one week of operation. Our second project, a low-rise condominium under the Aroon brand, sold out within its first year. Investors who purchased for speculation have also realized substantial profits, with some achieving returns as high as 28.5%. Additionally, investors who bought properties to rent have maintained continuous occupancy," Mr. Athavut stated.

The management of The Amarin further disclosed that in the next one to three years, they will maintain their focus on developing projects near Siriraj Hospital, recognizing the substantial customer base seeking residential options. The company aims to enhance the Aroon brand's visibility as it expands into other areas. Targeting the medical professional market presents a unique challenge, as this demographic tends to prioritize detail and possess clear, straightforward needs. Successfully developing projects that meet these requirements is expected to facilitate broader market engagement with other customer segments.