The Ratchada-Ladprao area has emerged as a prime location for both commercial and residential real estate in Bangkok. In a report released by property agency and consultancy Knight Frank Chartered (Thailand) Co Ltd., the area has seen dramatic changes in the past five years. Factors such as convenient access to the mass transit system and good connectivity to major city roads has encouraged robust expansion in the area’s real estate market.
In the condominium segment, large SET-listed developers, such as Pruksa Real Estate, Asian Property Development and Noble Development, have entered the market, causing the supply to surge while enhancing the area’s high-end offerings. Since 2011, the condo supply has exceeded demand; however, the take-up rate remained relatively high at approximately 62.6 percent, as of the end of 2013. Also, selling prices were found to have increased by approximately 8 percent per annum, reflecting an increase in development expenses, including land price, labour and material costs.
As for commercial office space, Ratchada-Ladprao, especially Ratchadapisek, Phaholyothin and Vibhavadee Roads, saw an increase of supply at all levels, from Grade A to Grade C buildings. While average occupancy rates fluctuated from 2008 to 2013, they remained relatively high; in 2013, the occupancy rate was over 95 percent. At the end of last year, the average rental rate in this area was about THB 495 per square metre — an increase from THB 465 per square metre in 2012.
Given the density of vehicular and foot traffic in Ratchadapisek and Ladprao, the retail segment also expanded, with intense competition between large players, including shopping mall operators. The area’s major retail centres achieved high occupancy rates, where seven out of 16 centres reported 100 percent occupancy. Rents largely depended on the nature of the tenants’ businesses, with those in the fashion retail category paying the highest rates.
