Bangkok is expected to become a new global “super city” in the medium-term, according to new research from real estate firm Knight Frank in its Global Cities 2016 report.
The Thai capital joins neighbouring Kuala Lumpur along with Dubai, Nairobi and Moscow as being described as being the most vibrant and promising destinations for international real estate investment.
According to the report, the central business district (CBD) of Bangkok is considered to be the area lying within Sathorn, Silom, Ploenchit, Wireless, Rama I and Rajdamri roads.
With a high density of office buildings, hotels and retail complexes, including the Rama I shopping precinct, the area in recent years has suffered from a shortage of land for development, pushing prices up sharply. While the mass-transit system has anchored the city centre, encouraged by the expansion of the public transport system, commercial development projects have started to spread to three new emerging areas.
Ratchadapisek-Rama 9 is the most talked about commercial sub-centre. This area, just to the north east of the core CBD, has at its centre the impressive Grand Rama 9 project. This cluster of high-quality office buildings includes the planned Super Tower, a 125-storey tower with a height of more than 2,000 ft, and on completion will be the tallest building in Southeast Asia. The project area additionally includes the under-construction G Land and the newly completed U-Place, a 12-storey 517,000 sq ft green office building, let to Unilever.
Elsewhere, further up Ratchadapisek Road, the new Stock Exchange of Thailand’s (SET) head office will be flanked by the American International Assurance (AIA) office building and Univenture PLC’s new mall called The Street. The competitive rents on offer in the area, along with the quality office supply with supporting amenities and mass-transit stations underlines why this area is expected to attract a large number of occupiers over the coming years, according to Knight Frank.
The Bangna area of Bangkok, to the south east of the CBD and conveniently connected to the BTS at Udomsuk Station is the second district to highlight. The Mall Group’s announcement to develop the Bangkok Mall project of 6.5 million sq ft has enhanced the commercial potential of the area. The project will consist of businesses, residences, offices, and a theme park and water park.
Other new commercial developments include Bhiraj Tower at Bitec and SJ Infinite 2. The offices in this area largely serve companies engaged in and related to airport operations and logistics, as well as companies with factories located on the Eastern Seaboard.
The decision to build a new transport hub at Bang Sue Grand Station, to the north of the CBD, looks likely to be another commercial real estate catalyst in the third of the new commercial districts. Provincial bus networks, rail lines and the city’s rail system, which is expanding by more than 250 miles, will all intersect in the area and the station will become the city’s main transport hub, replacing Hua Lumphong, Bangkok’s current major station.
With a significant amount of land available to private developers, the area is set to be a future hotspot in the Bangkok real estate landscape, the agency noted.
