When discussing the hottest locations of this year, the spotlight undoubtedly falls on “Phahonyothin-Sena Nikhom”. TerraBKK Research has previously published two articles on this area, covering new projects launched this year (Read “Keep an Eye on the Phahonyothin-Sena Nikhom Hotspot of 2017”) and the potential of the location (Read “The Potential of the ‘Phahonyothin - Sena Nikhom’ Area Beyond Just the Green Line”). This time, we aim to cater to investors who are keen on acquiring condos in this area, or even those who have already reserved units during various project presales, by exploring the rental market here and identifying the tenant demographics.

                As mentioned in previous articles, most buyers of new projects in the Phahonyothin-Sena Nikhom area are long-term investors looking to rent to students and professionals in the vicinity. Some buyers may not yet realize the rental prices in this area or the occupancy rates.

                According to a survey by TerraBKK Research, the Phahonyothin-Sena Nikhom area can command rental prices of approximately 10,000-20,000 Baht per month, or about 300-450 Baht per square meter per month. Upon further analysis, we find that tenants can be divided into two groups: those renting for 10,000-15,000 Baht per month and those renting for 16,000-20,000 Baht per month.

                Rentals of 10,000-15,000 Baht per month have an occupancy rate of approximately 80-90% per year, typically for studio and 1-bedroom units sized 22-50 square meters. The majority of tenants are students from Kasetsart University and officers from SCB, among others.

               Rentals of 16,000-20,000 Baht per month have an occupancy rate of about 50% per year, usually for 1-bedroom and 2-bedroom units sized 30-85 square meters. Tenants include employees from SCB, Chevron, celebrities, etc.

           

*** It should be noted that the data provided is as of September 2017. As new projects are completed and thousands of new units are added to the supply, the occupancy rates are likely to change.

                In summary, the rental condo market in this area is most easily rented at a market rate of around 12,000-13,000 Baht per month.

                When mapping out projects with rental units, it is found that projects near the currently operational MRT Phahonyothin station have higher rental rates of about 400-500 Baht per square meter per month, even if they are located in alleys. Additionally, this area benefits from proximity to major shopping centers like Central Ladprao and Union Mall, leading to higher rental rates compared to other zones.

                Another interesting point is the area from Ratchayothin Intersection up to Kasetsart Intersection, which is a transit point for the Green Line extension from Mo Chit to Kukot, set to open in 2020. As a result, rental prices have not yet significantly increased. Only certain projects located on main roads will achieve higher rental rates, as most tenants primarily use private cars. Being close to main roads facilitates easy access to the city via Ratchadapisek or Phahonyothin roads.

                In conclusion, regarding the investment potential of the “Phahonyothin-Sena Nikhom” area, TerraBKK Research can affirm that there is still considerable potential for investment in purchasing and renting out properties. In fact, if one is not concerned about the aesthetics or newness of the projects, buying second-hand units in this area can be more cost-effective, as new projects tend to be quite expensive. Ultimately, once the supply from all projects is completed, there will be nearly 8,000 units (excluding second-hand units), which warrants caution for anyone considering purchasing new projects for rental purposes - TERRABKK