The riverside area is considered a main attraction in Bangkok due to the appeal of waterfront living and river views. Many luxury hotels, high-rise condominiums and corporate towers have risen over the past decade on both sides of the Chao Phraya as it has become one of the most popular and scenic areas in the capital for property development.
RIVERINE RETREATS: New units continue to spring up along the Chao Phraya.
The riverside is defined as the area along the Chao Phraya taking in Charoen Krung, Charoen Nakhon and Rama III roads. It also encompasses the connected fringe areas of Sathon-Silom and Narathiwat Ratchanakharin Road.
Most riverside locations are conveniently accessible via expressways and major streets. There are also many public transport options, including the BRT bus network and BTS skytrain route. The riverside area has a comprehensive range of facilities and amenities such as restaurants, retail outlets, international schools, international hospitals and shopping malls.
One notable recent trend has been the development of many community malls in the Charoen Krung and Charoen Nakhon neighbourhoods such as Sena Fest, Vue and Vanilla Moon. These projects do or soon will provide a variety of goods and services to residents living on the riverside and to the increasingly affluent communities in surrounding neighbourhoods.
Statistics from Knight Frank Thailand show that the cumulative supply of Bangkok riverside condominiums was 19,807 units as of the end of the third quarter of 2012, an increase of 18.7% from the end of 2011. A total of 3,117 new condominiums were launched in the third quarter alone, with Rama III Road accounting for 1,388 units, or 45% of the total, followed by Krung Thon Buri with 23% and Narathiwat Ratchanakharin Road with 20%.
The outlook for condominium supply for 2012 and beyond has been positive. We have seen new luxury condominiums in the Riverside area introduced to the market to attract Thais buying as residences as well as for investment purposes. Additional demand is coming from elsewhere in Asia, mainly Singaporean, Hong Kong and Chinese investors.
Condominium demand totalled 2,404 units in the third quarter of 2012, a significant increase from just 771 at the end of 2011. The majority of demand in this period was for condominiums located on Rama III Road, with a total of 1,085 units sold _ most of them in recently launched developments including Supalai Prima Riva and D Condo Sathupradit 49. Another area where demand was high during the quarter was Krung Thon Buri, with 605 out of 1,633 newly launched units sold.
The overall takeup rate for riverside condominiums for the third quarter was approximately 45%, a strong increase from just 22% at the end of 2011. The rate in the Sathorn-Silom area was the highest at 91%, followed by Krung Thon Buri at 83%.
There are many condominium developments in the Sathorn-Silom area as it is an established business location with easy access to the Sukhumvit, Rama III and riverside areas. In addition, many condominiums are scheduled to be completed in Krung Thon Buri, reflecting the arrival of new mass-transit extension lines across the river, which will increase accessibility from Thon Buri to central Bangkok.
The average condominium selling price in the Bangkok riverside area was 102,730 baht per square metre as of the third quarter of 2012. The highest average price was in the Sathorn-Silom area, at 117,224 baht/square metre, while Narathiwat Road ranked second at 115,813 baht.
We project that selling prices in the area will increase sharply due to the lack of land to develop new condominiums in both the riverside and broader city centre area, as well as the tendency of developers opting for high building standards, using high-quality materials and specifications.
To date, a total of 403 new condominium units are scheduled to be launched in 2013, including The Breeze, a high-rise on Narathiwat Road by developer Eastern Star, and the low-rise project The Wing Sathorn on Krung Thon Buri Road. These projects will offer more choices to prospective buyers. We also expect that nearly 2,600 units will be completed by 2015, of which a total of seven condominium developments will be located in Bangkok's riverside area.
Among the new entrants will be Menam Residences, a condominium that will be located on the Riverside on Charoen Krung Road. It will feature a 54-storey building with 294 units worth a combined 3.3 billion baht and is scheduled to be completed by December, 2016.
Risinee Sarikaputra is associate director of research and valuation with Knight Frank Thailand, contact: risinee.sarikaputa@th.knightfrank.com.