One of the most popular locations for condominium development in Bangkok in the past year has been the area around the Ratchayothin intersection. While the area has always been a popular residential location, condo development peaked in 2009-10 and then went quiet until 2017, with more activity also foreseen this year.

The Ratchayothin area is a major employment hub with large-scale office buildings offering 500,000 square metres of space. It also features community malls and is not too far from a subway station and other shopping centres. The only thing missing has been a direct mass-transit link, but that is about to change.

The Green Line extension (Mor Chit to Khu Khot) is scheduled to be completed in 2020, but some stations may be open in 2019. Construction of the line began in 2015 and has been followed with keen interest, especially when demolition of the bridge at the Ratchayothin-Kaset intersection took place in 2015-16.

Many developers have acquired land plots in the Ratchayothin area and launched new projects in 2017. However, total new unit launches were lower than in some earlier periods, as many of the new condominium buildings were small or medium-sized, unlike the larger developments of the past.

The total number of condominium units in the area as of the end of 2017 was 8,779, around 90% of which were launched before construction began on the new mass-transit extensions. The average take-up rate of all condo units in the area was around 91%, reflecting the popularity of many developments, many of which sold out quickly.

Just two months into 2018, some developers have already announced new projects to be launched in the area, and more are believed to be in the pipeline. The total number of new units to be launched is expected to be 1,000 or higher. Although this is lower than at some other locations, the Ratchayothin area is still more interesting than many locations in Bangkok.

The average selling price of new condominium projects in the area has risen considerably and is now around 130,000 baht per square metre. Many older projects in the area sold for prices below 100,000 baht per sq m, producing an average of 82,000 baht. But new developments launched in 2017 are commanding prices of 140,000 to 150,000 baht per sq m.

The area around the Ratchayothin intersection is still in the radar screens of all developers in 2018 and in the future because of the mass-transit extensions scheduled to enter service in the next few years.

As well, the extension of the Yellow line from the Ratchadaphisek-Lat Phrao intersection to the Ratchayothin intersection will result in Ratchayothin becoming a busy interchange station in the future. The potential and interest in this area will thus be further enhanced.

Surachet Kongcheep is a veteran local real estate market expert. He can be reached at surachet.jock@gmail.com