Rama IV set to become central business district – projects poised as available land dries up in other locations
Bangkok’s central business district seems set to spread along Rama IV Road as land for development becomes scarce on Sukhumvit, Silom and Sathorn roads. A growing number of property projects will be launched around Rama IV Road.
Plans by the Port Authority of Thailand to develop 223 rai of Klong Toei Port, near Rama IV Road, may be delayed by protests from street vendors, but property developers are pushing ahead with plans for both commercial and residential projects in the area worth several billion baht.
Another of the area’s big projects is also on hold. Central Pattana CEO Kobchai Chirathivat said his company’s plans for a multi-purpose complex, including a luxury hotel, an office building, serviced apartments and a department store on what is now the 127-rai Suan Lum Night Bazaar, had been delayed.
However, the company believes the Crown Property Bureau, owner of the land and which signed a long-lease contract with Central Pattana in 2007, will deliver the plot to the company later this year or early next. Central Pattana expects to begin construction on the Bt10-billion project next year, for completion in 2011, Kobchai said.
Agency for Real Estate Affairs managing director Wasan Kongchan said Rama IV Road was a potential location for a new business district because a number of property developers were investing in the location. Land prices in the Rama IV Road area have increased from Bt300,000 a square wah in 2006 to between Bt500,000 and Bt600,000 this year.
Aliwassa Pathnadabutr
CB Richard Ellis Thailand managing director Aliwassa Pathnadabutr said Rama IV Road was likely to be a new centre for office buildings because land on Silom and Sathorn roads was now fully occupied.
Rama IV Road also has a subway service that makes it comfortable for transportation, and office rents in the area have risen to between Bt700 and Bt800 per square metre per month, she said.
Earlier, the Port Authority of Thailand (PAT) announced plans to develop 223 rai of Klong Toei Port as a mixed-use project costing several billion baht. Street vendors have protested against the plan, and it now faces delays.
The PAT’s plan is to separate the area into four zones.
The first, covering 17 rai near its head office, will be for maritime business offices.
The second, covering 54 rai opposite the Customs Department, will be a logistics and distribution centre.
The third zone, covering 137 rai from the present bus terminal to Klong Toei Market, will be a community and shopping centre.
The fourth zone, covering 15 rai currently occupied by warehouses, will be an area for office buildings.
If the projects of Central Pattana and the PAT both proceed as planned, Rama IV Road will become Bangkok’s new central business district, property experts say.
Research by Colliers International shows 67 per cent of tenants at serviced apartments in the Sukhumvit area now stay an average of only three to seven days, at a daily rate of Bt1,000 to Bt2,000 a night for grade-B serviced apartments and Bt2,000 to Bt3,000 for grade A. Five-star hotels usually charge Bt4,000 to Bt5,000 a night.
Seventeen per cent of serviced-apartment tenants stay more than a year, and the remaining 16 per cent stay one to three months.
Risinee said average rental prices for both grade-A and grade-B serviced apartments in the Sukhumvit area were now lower than luxury and four-star hotels. Consequently, serviced apartments are developing their services to compete directly with such establishments.
Somluck
Srimalee
