U District: The Rangsit Location with Endless Rental Potential

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            In this article, TerraBKK<\/span> will delve into the area around Thammasat University-Bangkok University<\/span> as they are located close to each other.

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Overview of the Rangsit Area<\/span>

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            Let's first discuss the overall potential of the Rangsit area<\/span>. Currently, TerraBKK<\/span> views the Rangsit area as having transitioned from Thung Rangsit<\/span> into a significant and comprehensive residential area. TerraBKK<\/span> summarizes this in three points:

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• Comprehensive Amenities<\/span><\/li> <\/ul>

              Due to continuous growth in the Rangsit area, people no longer need to travel into Bangkok to meet their lifestyle needs. The area itself offers amenities that cater to all levels, including Index Living Mall, Big C, Tesco Lotus, Major Cineplex, and the Future Park Rangsit & ZPELL shopping centers, which elevate brand offerings to match those found in central Bangkok.

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  • A Growing Location with a Bright Future<\/span><\/li> <\/ul>

                In the near future, the Rangsit area<\/span> will be further enhanced due to the introduction of the Red Line Suburban Train<\/strong> Rangsit-Thammasat covering a distance of 8.84 km with an investment of 6.57 billion baht, which was approved by the Cabinet in February 2019 and is expected to be operational by 2022. This will create more travel options between cities, increasing land value and the potential of the Rangsit area significantly.

                Additionally, there are Mega Projects from the private sector such as Mega Rangsit<\/span> and Central M<\/strong> which, although currently in a project slowdown, have confirmed land parcels and are awaiting the right opportunity to launch further projects.

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    • Large Market and Educational Institutions<\/span><\/li> <\/ul>

                  With strategic location advantages that allow easy connections to other regions, it is home to Talad Thai<\/span>, the largest wholesale market in ASEAN with over 3,500 vendors, catering to local shopping needs, and is also home to several leading universities. TerraBKK<\/span> believes that the Rangsit area<\/span> is a U District<\/span> with great potential.

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      Why is U District in Rangsit a Potential Location?<\/span>

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                  It should be noted that the primary demand group in U District<\/span> consists of students and staff. In the U District<\/span> near Thammasat University<\/span> and Bangkok University<\/span>, there are over 52,000 students and more than 10,000 staff members. TerraBKK<\/span> will delve into the demand potential from both universities as follows:

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      1. Number of Students and Departments at Each University<\/li> <\/ol>

                     Thammasat University<\/strong> has 21 faculties at its Rangsit campus, with 38,554 undergraduate students and 1,666 academic staff members, including experts, assistant professors, associate professors, professors, and lecturers, not including support staff and others totaling 5,549.

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                   Additionally, looking back at the statistics of student numbers at Thammasat University, Rangsit Campus, from 2014 to 2018, there has been an average annual increase of approximately 3.21%, with a significant spike of 9.53% in 2018, indicating stable demand.

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                   For Bangkok University<\/span>, there are 13 faculties at its Rangsit campus, with approximately 27,840 students and a total of 1,537 academic and support staff.

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         2. Educational Institutions with Higher Tuition Reflecting Spending Power<\/li> <\/ol>

                        Although Thammasat University<\/span> is a government institution, the average tuition fee for each faculty is around 110,000-150,000 baht per program (approximately 13,750-18,750 baht per semester), similar to other public universities. However, some faculties have tuition fees above the standard, particularly in science-related fields such as Dentistry, Medicine, Pharmacy, Architecture, and International College of Medicine, with tuition fees ranging from 169,000-786,000 baht per program and a total of 6,136 students.

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                      For Bangkok University<\/span>, being a leading private university in the country, tuition fees are naturally higher than those at public institutions, averaging around 250,000-470,000 baht per program.

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                        Both of these factors illustrate a large and quality demand group in terms of housing and purchasing power, leading TerraBKK<\/span> to view Thammasat University<\/span> and Bangkok University<\/span> as a U District<\/span> with high potential.

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            Understanding Lifestyle is the Key Challenge for Condominiums in U District<\/span>

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                      In the past, most students lived in dormitories or apartments that were not very expensive and did not require many facilities, as long as they were close to the university and safe for travel. However, today, student lifestyles and demands have changed. It can be observed that dormitories and apartments near universities are increasingly incorporating common areas for studying and activities to accommodate student tenants. A crucial consideration for choosing a condominium in the U District<\/span> is to thoroughly understand student lifestyles, which include:

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            • Transportation to and from University - If the project is not within walking distance to the university, there should be shuttle services between the condominium and the university. Many students in U District<\/span> often use van and bus services to travel between Bangkok and the university, which is a lifestyle different from U District<\/strong> in other areas.
            • Study Areas, Reading Spaces, and Other Amenities - Students often look for spaces to gather, especially for group work or study sessions. Therefore, there should be common areas for studying and working, such as meeting rooms, co-working spaces, or libraries.
            • Group Activity Spaces - Since students tend to spend time with friends, having common areas like game rooms or other group entertainment options is appealing.
            • Exercise Areas - Of course, students are no different from working adults who are increasingly interested in health and fitness. Having a swimming pool for actual swimming and a fully equipped gym with trainers is also a viable option.
            • Food Delivery, Cleaning, and Laundry Services - It cannot be denied that services that provide small conveniences like food delivery, room cleaning, or laundry services are in demand among students at all universities.
            • Safety is a Priority for Parents - Naturally, those paying for accommodation are not the students themselves but their parents. The most important factor for parents is the safety of their children.
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            The Growth of Land Prices in Rangsit<\/span>

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                      Over the past eight years, the estimated land value in Rangsit (Khlong Luang District) has increased by no less than 33.3 - 40% from the previous year. This is evident from the two main roads that run through this area.

            • Phahonyothin Road has an estimated value of 70,000-75,000 baht per square wah (2016-2019), up from 50,000-75,000 baht per square wah (2016-2019), with the lower end increasing by an average of 40% from the previous year.
            • Highway 3214 (Khlong Luang-Bang Khun Thian) has an estimated value of 20,000-40,000 baht per square wah (2016-2019), up from 15,000-40,000 baht per square wah (2016-2019), with the lower end increasing by an average of 33.3% from the previous year.
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                      The growth of land prices in Rangsit is unlikely to stop at these figures, as it is known that in 2020, the Rangsit area<\/span> will have a public transportation network with the Red Line (Bang Sue-Rangsit)<\/span> opening for service. Additionally, the Cabinet has approved the extension of the Red Line (Rangsit-Thammasat Rangsit Campus)<\/span> over a distance of 8.84 kilometers with a budget of 6.57 billion baht, expected to open in 2022, which will enhance mobility for residents in Rangsit and subsequently adjust land prices to accommodate future development.

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            Exploring High-Rise Projects Around Thammasat University and Bangkok University<\/span>

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                      The uniqueness of the Rangsit area<\/span> as mentioned earlier, with Thammasat University<\/span> and Bangkok University<\/span> located here, reflects the opportunity for land development into dormitories and apartments to meet temporary housing needs effectively, with a combined student population of over 52,000 per year.

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                      The overview of dormitories/apartments<\/span> around these two universities shows that for projects with limited amenities, some charge fees for services like fitness. The rental rates are around 4,000-6,000 baht per month, with basic furniture such as tables, cabinets, and beds, in rooms not exceeding 30 square meters.

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                      Meanwhile, projects with complete amenities both in-room and in common areas enhance residents' comfort. Rental rates vary by room type, such as studio apartments averaging 6,500-9,000 baht per month, one-bedroom apartments averaging 9,500-12,000 baht per month, and two to three-bedroom apartments starting from 12,000 baht per month. These projects offer more amenities like water heaters, cable TV, internet, and free common facilities such as gyms, swimming pools, reading rooms, and gardens, along with shops and laundry services. In terms of security, in addition to security guards and CCTV, access key cards are also provided for enhanced safety.

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                       When comparing the common amenities of dormitories/apartments<\/strong> with rental rates of 6,300-15,000 baht per month across over 10 locations near the "Chiang Rak Gate" <\/span>—the main entrance for Thammasat University students—safety is prioritized by all projects, including security guards, CCTV, and access key cards. Following that, laundry services, gyms, and lounge areas are also important.

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                        With over 52,000 students in this area, it is no surprise that many dormitories/apartments are fully occupied, and it is uncertain when vacancies will arise. Most are projects close to the Chiang Rak Gate, the entrance to Thammasat University. Beyond temporary housing options like dormitories/apartments, condominiums<\/span> are also an interesting living option, catering to the housing needs of parents with purchasing power. Not only do they serve as "real estate for residence"<\/strong>, but they also present opportunities for "real estate investment for rental"<\/span>.

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                        The response to condominiums in this area has been quite positive<\/strong>, as seen with KAVE TOWN<\/span> by Asset Wise, located opposite Bangkok University, which launched in 2017 and is now sold out, with two new projects, KAVE Town Space and KAVE Town Ship, launching this year. Meanwhile, ATTITUDE BU<\/span>, launched in 2018, stands out with its unique room design of 34.5 square meters, accommodating four people comfortably. In the condominiums near Thammasat University, DCONDO CAMPUS<\/span> by Sansiri has been continuously selling out, even in its third phase, reflecting strong demand for condominiums. Recently, it has been reported that a new condominium project, COMMON TU<\/span> from The Creators HQ<\/span>, is set to develop land near the entrance of "Chiang Rak Gate"<\/span>, focusing on amenities exceeding 3,500 square meters, unlike anything seen before, including Double Floor Fitness, Glass House, Cloud Box, etc. The project will also offer special services for tenants, such as daily housekeeping and food delivery services, making it an intriguing condominium option for residents. Further details about the project will be awaited, with an expected launch this year.

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                      If asked which location can be a potential area with "tenants" forever, one of the answers must include "Rangsit area"<\/span>. Due to its proximity to renowned universities with a combined student population of over 52,000 across various faculties, condominiums<\/span> have become a form of real estate that meets the housing needs. Projects with complete facilities can effectively cater to the living requirements of the student demographic, and in the near future, the opening of the Red Line will further enhance the potential of "Rangsit area"<\/span>, a location with continuous growth prospects.