'Sukhumvit Road' is a street that reflects modernity, a hub of lifestyle, a gathering place for foreigners, and a residential area for the wealthy. One of the neighborhoods in the southern part of Sukhumvit, 'Phra Khanong', is another location that once flourished to its peak in Bangkok, situated along this Sukhumvit axis that many may not yet know about.

'Phra Khanong' is a center of entertainment akin to 'Wang Burapha'

                About 40 years ago, 'Phra Khanong' was a suburban area so prosperous that it was referred to as the 'Wang Burapha of suburban Bangkok'. It was a neighborhood for foreigners and a center of entertainment in suburban Bangkok at that time, featuring high-end shopping centers such as Thai Daimaru, Asean, Edison, ATM, and Velco. Additionally, it was bustling with more than six cinemas, one of which was the Phra Khanong Theater, which had a capacity of 2,000 seats, three floors, and special boxes like an opera theater, making it the largest cinema in the country at that time.

The vibrant atmosphere of entertainment in Phra Khanong from the movie 'Kao Kao' (GTH, 2006)

                Although in the present era, 'Phra Khanong' is not as vibrant in terms of entertainment as it once was, it still retains its appeal as a residential and real estate area where foreigners, especially Japanese, Koreans, British, and Americans, are increasingly moving in. This area is no longer limited to just Asoke-Phrom Phong-Thong Lor-Ekkamai, making 'Phra Khanong' another promising area for real estate development in Sukhumvit.

'Phra Khanong' as a rental area for foreigners

                Currently, Phra Khanong is becoming a popular area for foreigners to rent, as various amenities have begun to emerge, making it a well-equipped location for foreign residents, particularly the Japanese, similar to Thong Lor and Ekkamai.

                The team at TerraBKK Research visited Phra Khanong and spoke with Japanese residents, gathering information that more Japanese are moving to Phra Khanong, especially those living alone, due to the lower cost of living compared to Thong Lor and Ekkamai. They can travel by BTS just as easily and have access to comprehensive amenities. What Japanese residents seek is convenience in commuting to work, so condominiums close to BTS stations are often prioritized over other factors.

                Furthermore, retail in Phra Khanong is continuously growing, allowing it to regain the lively image it once had. Investors are increasingly opening retail projects and community malls to meet the demand of those moving into Phra Khanong.

Since 2012, the Gateway Ekamai lifestyle mall has targeted middle to upper-class customers and foreigners, especially the Japanese. In 2013, the W District lifestyle mall was established near BTS Phra Khanong, finally completing the amenities in Phra Khanong.

                Most recently, in 2018, a mixed-use project was launched at Phra Khanong station, known as Summer Hill, which includes shops, cafes, restaurants, a gym, and co-working spaces, catering to the lifestyle of modern residents. Additionally, phase 2 of the project will develop office buildings with retail space, totaling approximately 10,000 square meters, making Phra Khanong an even more vibrant area for living.

'Phra Khanong' has transportation potential similar to Phrom Phong, Thong Lor, and Ekkamai

                With a distance of only about 650 meters from Ekkamai station and just one minute to the next station, the transportation potential of Phra Khanong station is comparable to Ekkamai. Traveling to Siam, Silom, Chatuchak, or Bang Na takes about the same time.

                Additionally, Phra Khanong serves as a minor interchange for important roads in the central to southern Sukhumvit area, as it connects to other locations via several major roads, including Sukhumvit 71, which leads to Phetchaburi Road, Ramkhamhaeng Road, and Pattanakarn Road for easy access to Ramkhamhaeng or Rama 9. Alternatively, using Rama 4 Road allows access to Silom and Sathorn, making Phra Khanong a convenient location for living and commuting to key areas.

'Phra Khanong' with future opportunities

                Approximately 1.5 km from Phra Khanong is the area of the Port Authority (Klong Toey Port), covering over 2,253 rai, which is a large piece of land in a prime location. Along Rama 4 Road, there are numerous mega-projects from the private sector, such as The PARQ, One Bangkok, and the mixed-use project of CPN + Dusit Thani, and Samyan Mitrtown.

                The land of the Port Authority has had a development concept for a long time, but due to timing not being right for development, no projects have emerged from this land yet. However, the master plan for the development of the area around Bangkok Port (Klong Toey), covering 2,253 rai, will be proposed to the Port Authority Board for consideration again. The original concept for the land development is divided into three zones:

 

1. Zone A: Commercial Development Area focuses on commercial and residential development in the community (Smart Community), consisting of:

  • Area A1 size 6,800 sq. wah (17 rai) valued at 400,000 baht/sq. wah, with an investment value of 6,694 million baht, developing the area into a 44-story business center to support the business of Port Authority and related businesses to accommodate a Modern Port City.
  • Area A2 size 21,600 sq. wah (54 rai) valued at 120,000 baht/sq. wah, with an investment value of 3,536 million baht, developing a logistics center to support activities related to the main activities of collecting and distributing goods linked to international trade, which is upstream and downstream industry.
  • Area A3 size 6,000 sq. wah (15 rai) valued at 150,000 baht/sq. wah, with an investment value of 3,478 million baht, developing into office buildings.
  • Area A4 size 50,728 sq. wah (127 rai) valued at 200,000 baht/sq. wah, with an investment value of 10,145 million baht, developing into a comprehensive business shopping center. Area A5 is the area of the tanning organization, approximately 21 rai, which the Port Authority will be the first area to develop into a building, approximately 245,644 sq. m.

2. Zone B: Port Area currently has 943 rai, which will be adjusted to 534 rai, dividing the development into a goods packing station, etc.

3. Zone C: Large Business City Development

This will be a landmark for the country and a tourist attraction, linking water tourism, which will renovate old warehouses into an international passenger port or a large passenger ship dock (Cruise), etc.

                The investment value for developing this large piece of land is expected to be no less than 100 billion baht.

“Phra Khanong” is the number 1 rental demand area on the website terrabkk.com

                When discussing investment potential in Phra Khanong, it may be hard for some to believe. TerraBKK Research found an interesting statistic for Phra Khanong, revealing that the number of people looking for condos for rent under 20,000 baht per month ranks Phra Khanong-Udom Suk as the number 1 area. Interestingly, when we shift the rental segment to 20,000-50,000 baht per month, Phra Khanong still ranks as one of the areas where people are interested in renting condos. It is evident that people are starting to look for condos priced between 20,000-50,000 baht per month from Asoke intersection to Phra Khanong (particularly dense around Phrom Phong-Thong Lor).

When looking at the rental rates for condos in Phra Khanong, most rentals are around 24,000-50,000 baht per month, predominantly for one-bedroom units, which are the most popular type for renting.

 

Finding new condos in this area is becoming increasingly difficult

                Although Phra Khanong is located in the southern Sukhumvit zone, which many might think has easier access to condos than the central or upper Sukhumvit, the reality is quite the opposite. The amount of new supply each year is often less than a thousand units, and in some years, there are no new projects at all, which contrasts sharply with the rising prices each year, averaging an increase of 10-15%.

                When looking for condos to invest in for rental, one must consider not only the location but also the supply of rental units in the same area. Especially if the condos are of similar levels, owners will likely face challenges with tenants requesting to lower their prices to match competitors.

                The only new project this year in Phra Khanong is the Vertier, located along Sukhumvit Road, just 30 meters from BTS Phra Khanong. Currently, there is not much information available, so we will have to wait and see what Vertier will offer. However, it is rumored that the launch price will be around 230,000 baht per square meter, which will significantly influence condo prices in Phra Khanong moving forward. For anyone looking for a new condo at an initial launch price, this project in Phra Khanong should not be missed, as it is rare to find a condominium right along Sukhumvit Road.

                When looking at the overall picture of Sukhumvit, the southern part may not be on many people's radar, but this year it deserves a second look. With convenient access comparable to central Sukhumvit, rapidly rising condo prices, and the highest rental demand on terrabkk.com, anyone seeking a reasonably priced condominium in Sukhumvit should consider Phra Khanong, as this area has much to offer just like other locations.