With a shortage of available land and units in Bangkok’s CBD, developers are now planning luxury projects outside of this area. CBRE Thailand pointed out that both Ratchadaphisek Road and Bang Na have been targeted since there is currently a shortage of luxury supply at these locations while demand continues to increase.
New commercial developments on Ratchadaphisek Road in the Din Daeng district have been completed during the past few years and this has led to a rise in demand for luxury housing, CBRE managing director, Aliwassa Pathnadabutr, explained.
“This demand comes from executives whose offices relocated to the new central business district on Ratchadaphisek Road,” Aliwassa told the Bangkok Post. “They are looking for large low-rise homes in nearby locations for their family, as condos which are usually small in size do not fit their requirements.”
Luxury single houses in the Bang Na area have been scarce as well with most new supply coming from the building of new phases at existing projects. However, experts are predicting that the area’s potential is better now with the construction of Bangkok Mall scheduled to begin soon.
“Demand for luxury single houses in Bang Na comes from both people working in the city and seeking an outer city unit and those living in an old project in the location where they have lived for 20-30 years,” Aliwassa pointed out.
One developer already has plans for both of these areas. Charn Issara Development announced that it will launch two new projects in August. These will be Issara Residence Rama 9 and Baan Issara Bangna. Units at the Rama 9 development are slated to be priced at THB80-120 million, while units at the Bang Na project are scheduled to cost THB46 million.
“The property market in the second half may slow as the property tax incentives ended last April,” Charn Issara’s chief executive Songkran Issara told the newspaper. “But the upper-end housing segment will continue growing as the purchasing power in this segment is strong.”
