Where is the best location? When it comes to the premium nature of a residential area and the surrounding environmental factors, the Super Prime area of Bangkok undoubtedly belongs to Ratchadamri-Lang Suan-Witthayu. Historically, this area has been home to wealthy aristocrats and continues to thrive today, with Super Luxury condominium projects frequently launching. Given the limited available land for development, transactions in this area always generate buzz and attract attention.

Ratchadamri-Lang Suan-Witthayu: The Best Location Equals the Best Projects

It seems that everyone agrees on the status of Super Prime area for Ratchadamri-Lang Suan-Witthayu, as developers constantly compete to secure land deals in this prime location to create the best projects in Bangkok.

Back in 2006, this area made headlines as the champion of the highest land prices in Thailand when the Central Group won the auction for a 9-rai plot of land from the British Embassy adjacent to Central Chidlom at a price of 950,000 baht per square wah, to develop Central Embassy. This project was noted as the most significant investment per square meter that Central had ever made.

In mid-2010, this area set another record for the highest land price when Sansiri Public Company Limited purchased land in the Witthayu area, previously the Spanish Embassy, from the Suchat Na Ayutthaya family, totaling 2 rai and 23 square wah for 1.5 million baht per square wah, amounting to 1,234,500,000 baht. At that time, if Sansiri were to develop a condominium project, they would have to set prices as high as 300,000 baht per square meter, which was already near the ceiling. However, when they launched 98 Wireless in 2017, this flagship project debuted at a price of 500,000 baht per square meter, and the highest recorded sale price by December 2017 reached over 800,000 baht per square meter, with nearly 80% sold within 9 months, making it the most expensive condominium project in Thailand.

In 2015, SC Asset Corporation purchased a 3-rai plot from an old family looking to divide their inheritance on Chidlom Road for the highest land price in the country again at 1.9 million baht per square wah, totaling 2,280 million baht, which is now developed into the 28 Chidlom project, a Super Luxury condominium.

In 2016, another deal occurred in this area, although it did not break the record for the highest land price, it still generated excitement when Bangkok Hospital Group purchased land for the Park Nai Lert project, established since 1980, for 10.5 billion baht, covering approximately 15 rai, to develop the BDMS Wellness Clinic, the first comprehensive health center in Asia.

In 2017, this area reclaimed its title for the most expensive land once again when Central Group won the auction for land from the British Embassy on Witthayu Road, covering 23 rai for 20 billion baht, or about 2.2 million baht per square wah, breaking the land price record without question. With such a high land cost, it will be interesting to see what Central will develop on this land next.

The statistics for land transactions at such staggering prices in this area are far from over, as recent whispers suggest that land measuring 1-2 rai in the Rama 4 area has been offered for sale at 3 million baht per square wah, with ownership already transferred. Additionally, the remaining land in Lang Suan has very little ownership left, with prices set as high as 5 million baht per square wah for a complete land parcel with buildings covering 2.5 rai (or 1,000 square wah) at a price of 5 billion baht. It remains uncertain whether this price is a genuine offer or merely a way to deter interest.

However, one confirmed deal is from 2017 when SC Asset auctioned for land with buildings near Mater Dei School at a price of 3.1 million baht per square wah and stated they would sell at 600,000 baht per square meter. On the other hand, Major Development (MJD) transformed the land for the MUNIQ Lang Suan project on Tonson Road near the intersection with Sarasin Road at a price of only 2.x million baht per square wah, which was launched interestingly as a Freehold condominium amidst Leasehold properties.

World-Class Location Factors

            It is evident that each project launched in the Ratchadamri-Lang Suan-Witthayu area is a Super Luxury project and often a flagship project. This confirms that this area is indeed the Super Prime area of Thailand. When compared to international locations, this area can be likened to the best locations in the world such as Hyde Park London or Central Park New York.

Hyde Park, London

            The location adjacent to the large park Hyde Park is the best location in London. The project One Hyde Park is the most expensive in this area and also the most expensive penthouse project in England, currently priced at 6.4 billion baht (200 million USD). In 2015, the average price of this project was 3.9 million baht per square meter, but by 2017, the average price had risen to 4.1 million baht per square meter, ranking second among the world's most expensive penthouses.

Central Park, New York

            In New York, luxury living is concentrated in Manhattan, with the best location being around Central Park, the city's lungs. The most expensive project is 432 Park Avenue, where in 2015 the average price was 2.6 million baht per square meter, and by 2017, the average price had risen to 3.2 million baht per square meter.

Whether it is Hyde Park, London, Central Park, New York, or Ratchadamri-Lang Suan-Witthayu, they all share common factors: they are locations that encompass the best and most expensive projects, situated in the city center, surrounded by amenities and public services, offering enjoyment and city views, located near the largest green spaces, and continuously increasing in value. These Super Luxury projects will have selling prices 2-4 times higher than typical condominiums.

Finding a Good Freehold Condo in “Ratchadamri-Lang Suan-Witthayu” is Harder than Finding a Needle in the Ocean

           

Because most of the land in the Ratchadamri-Lang Suan-Witthayu area is leasehold property, especially around Ratchadamri-Lang Suan, if you want to acquire a good plot of land in this area, it is often in the form of leasehold. It is not surprising that in a Prime area like Ratchadamri-Witthayu-Lang Suan, even without full ownership of the land, many people still want to claim ownership to develop projects that can be classified as Super Luxury.

            Therefore, it would not be wrong to say that a Freehold condominium in the Ratchadamri-Lang Suan-Witthayu area is a Rare item. From the map below, we can see that in the Ratchadamri-Lang Suan-Witthayu area, there is a significant concentration of leasehold properties. It is not often that we see a good Freehold project launched, usually only 1-2 projects per year, and the number of units is not large.

Why Buy Freehold When Leasehold is Cheaper?

            When comparing prices, most Leasehold projects are about 20-30% cheaper than Freehold (in the same location), but this comes at the cost of only a 30-year lease. After that, it depends on the agreement with the landowner whether to renew the lease and at what cost, as well as the future value appreciation. Leasehold projects will see their value decrease over time as the lease period shortens, meaning the longer you hold it, the lower the resale price and the harder it becomes to sell. In contrast, Freehold projects behave like typical condominiums, with prices increasing over time.

            TerraBKK Research has analyzed Leasehold and Freehold condominiums in the Ratchadamri-Lang Suan-Witthayu area and found that if it is a Freehold project, the price growth rate (Cap Gain) is about 6-12% per year, while Leasehold projects with more than 20 years remaining on the lease have a growth rate of about 4-5% per year, and those with less than 20 years remaining have a growth rate of about 3% per year.

 

            To clarify further, TerraBKK Research has provided an example of condominiums launched in 2007, which was the year with the most condominium launches in Ratchadamri-Lang Suan-Witthayu, totaling 6 projects, divided into 3 Freehold and 3 Leasehold. We then looked back at the resale data for each year to compare how the prices of both Freehold and Leasehold projects grew over time.

            The graph clearly shows the difference in price growth. Over time, the price of Leasehold properties hardly increases, while Freehold properties continue to rise. This clearly illustrates that if you are considering purchasing a condominium in Ratchadamri-Lang Suan-Witthayu for living or as a long-term investment, finding a good Freehold project is certainly more worthwhile than a Leasehold project, as “in the future, Freehold projects in this area will be even more of a Rare item.”