All Eyes on Phaholyothin and Vibhavadi
Wide roads, big universities, series of office buildings and other amenities, short drive to Don Muang airport and easily accessible to expressways, Phaholyothin and Vibhavadi areas have all the right ingredients to make them among the most sought-after locations for residential development in Bangkok. And we believe they will become such soon with the BTS Light Green line extension as the final missing piece.
In the near future, we will see these areas’ transformation with the coming of the long-awaited mass-transit line. By the end of 2019, Bangkok will be greeting its newest mass-transit line extension, the BTS Light Green (North) extension line, along Phaholyothin Road. It will be the second extension that will be opened this year following the MRT Dark Blue Line extension. The extension will increase accessibility and ease traffic on what has been known as one of the most congested roads in Bangkok.
Bang Sue Grand station, which will be the largest transit hub in the ASEAN region, is also expected to be completed by 2021, connecting three different mass-transit lines and effectively linking the Northern, Western and Southern parts of Bangkok together. Mo Chit Complex, a mixed-use project with office and retail spaces, will be directly connected to the BTS Mo Chit station. Another future development is expected from CPN that has acquired a 46-rai land plot connecting Viphavadi and Phaholyothin roads, approximately 300 metres to the new BTS Phaholyothin 24 station.
Numerous SMEs and multinational companies can be found clustering on Phaholyothin, while government enterprises and large Thai corporates such as PTT and the SCB headquarters are located on Vibhavadi road. In addition to office buildings, the area has many other value-added characteristics with retail centres such as Central Ladprao and Major Ratchayothin and a major transportation hub, i.e. Bangkok Bus Terminal Chatuchak (Mo Chit 2), all within a 15-20 minute drive to the Don Mueang International Airport.
A new Bangkok city plan scheduled to be effective by the end of 2020 at the latest will lead to greater use of land for property development especially along the new mass transit lines and extensions. Areas around the extension of the BTS Light Green Line will benefit from the increase in Floor Area Ratio (FAR) from the changing of zone colors, allowing developers to use land more efficiently.
The ongoing rapid development of the area is attracting developers to launch new condominium projects along the BTS Light Green extension line, where vacant land plots can be purchased at a reasonable price. In Q2 2019, the under-construction condominium projects in the Phaholyothin/Vibhavadi area have achieved the highest sales rate compared to other midtown areas of Bangkok, despite having the highest average asking price in the midtown area of THB 153,000 per square metre. Based on CBRE Research’s data, approximately 75% of all 12,800 units from 27 condominium projects have been sold. The accumulation of many ongoing projects makes the area one of the most anticipated midtown locations.
In the next few years, we believe infrastructure improvement and large-scale developments in Phaholyothin/Vibhavadi will increase the demand for residential properties from both end-users and buy-to-rent investors. As the landscape of Phaholyothin and Vibhavadi is being transformed, developers will make the most out of this opportunity to develop projects that will answer the emerging demand in the area.
An article written by Thanawin Suppakarnpanich, an analyst at Research and Consulting, CBRE Thailand for Bangkok Post dated 18 Septermber 2019.