In-Depth Look at Bangna: A New Phenomenon in Growth

Nowadays, no one views the area of 'Bangna' as a 'dull' location anymore. If we look at the outer urban areas of Bangkok, which accommodate the city's and businesses' expansion, it is clear that Bangna stands out in terms of growth compared to other locations. This is due to its comprehensive amenities and the attraction of several major projects, which have transformed Bangna from a low-rise residential area into a high-rise residential zone, alongside increasing urbanization.

Therefore, in this article, Terra Research will not only take readers through the current potential of Bangna and its future growth opportunities but will also delve into insights on why the demand for high-rise residential properties in Bangna has significantly increased.

Bangna-Trad Road and the Green Line Skytrain: Major Arteries Connecting Bangna's Business

Bangna-Trad Road is not only a main road that serves as a vital artery bringing prosperity to Bangna, but it also plays a crucial role in connecting Bangkok to the eastern zone, which is an important economic area for the industrial sector. Additionally, it connects with other major roads such as Sukhumvit Road, Srinakarin Road, Kanchanaphisek Road, and Kingkaew Road, all of which are significant routes in Eastern Bangkok.

Moreover, for those commuting to the city from Bangna, it is also connected to the Chaloem Maha Nakhon Expressway, allowing for easy access to the CBD in just one toll. Therefore, for those using private cars, moving to the outer areas of Bangkok like Bangna, in exchange for lower housing prices and a short travel time via the expressway, is indeed a good option.

For those who travel by skytrain, living in Bangna remains a popular choice. The key reason is the presence of the BTS Green Line, which connects to the central business district of Bangkok. Additionally, as job opportunities have begun to expand towards the end of Sukhumvit, from Thonglor, Ekkamai, Phra Khanong, On Nut, Punnawithi, Udom Suk to Bangna, traveling by skytrain just a few stations has become increasingly significant. This has transformed the end of Sukhumvit into a new job hub for Bangkok, creating a high balance between jobs and housing, resulting in a growing demand for residences in Bangna.

Bangna: A Continuously Expanding Job Hub

Bangna is also distinguished by its numerous large office buildings for rent, similar to Vibhavadi Rangsit Road, which connects suburban areas with a similar distribution of job sources. This includes both Grade A and Grade B office buildings, such as Pirath Tower, Central City Bangna, Bangna Tower, Ample Tower, Bangna Complex Tower, Thai Life Assurance Building, Interlink Building, Tiew Hong Building, and Pairoj Kijja Building, among others. There are over 30 large office buildings for rent, totaling more than 580,000 square meters, with an estimated workforce of around 35,000 people (estimated based on 1 person per 10 square meters, with a 60% occupancy rate). Terra Research has found that most companies are from high-value industries and employ skilled labor, including industrial engineering, logistics, computer technology, biotechnology, construction, automotive, electrical, food and beverage, energy and fuel, chemicals, and securities, funds, and loans.

Additionally, many multinational companies, both Japanese and European, are located in the Bangna area, most of which have manufacturing plants in industrial estates in Samut Prakan, Chonburi, Chachoengsao, and Rayong. This has resulted in a significant number of middle-level expatriates working in this area. Furthermore, 36% of these companies have registered capital exceeding 100 million baht.

Fully Equipped with Facilities & Lifestyle to Support Living

The Bangna area is vibrant with high levels of amenities and lifestyle options, making it a compact district that can sustain itself without needing to seek lifestyle sources in the city. There are over 15 lifestyle centers, including shopping centers, specialty stores, hypermarkets, and community malls, covering a total area of 400,000 square meters, such as Central Plaza Bangna, Mega Bangna, Little Walk Bangna, Market Village Suvarnabhumi, Decathlon Bangna, Central Village Suvarnabhumi, and Foodland Bangna. The diversity of lifestyle options in Bangna confirms the area's high population density.

Additionally, the presence of over 12 leading international schools in the area, with tuition fees ranging from 100,000 to 700,000 baht per year, indicates that many foreigners live in Bangna. These schools offer various curricula, including Chinese, American, British, and Singaporean, such as Thai-Chinese International School, Bangkok Patana School, Concordian International School, American School of Bangkok, ICS International School, Montessori International School, Berkeley International School, St. Andrew's International School, Glory Singapore International School, Singapore International School, Verso International School, and American International School.

Bangna: A New Chapter as the New Center of Outer Urban

The potential of Bangna is not limited to its high growth rate; there are also exciting development opportunities on the horizon. Each project entering Bangna aims to enhance the area's job and business potential even further. It is anticipated that in the future, Bangna will become a location for the new generation and truly become the New Center of Outer Urban, with major developers stepping in to develop the area, including:

  • AIA Group is developing the AIA East Gateway project, a 33-story Grade A office building with 70,000 square meters of rental space, which will also feature retail shops on five floors. The project is currently under construction.
  • The Mall Group is developing the Bangkok Mall project, a mixed-use project valued at 50 billion baht, which will include retail space, rental office buildings, and an arena.
  • Chatrium City Group will develop the Chatrium Tower on the land adjacent to the Bangkok Mall project, consisting of one 52-story mixed-use building and three 40-story buildings, including a hotel, residential units, and rental office buildings (currently awaiting updates).
  • Magnolia Group is developing The Forestias, a mixed-use project valued at over 100 billion baht, which will include a hotel, rental office buildings, retail space, and residential units, currently under construction.
  • CP Group is developing the True Digital Park Phase 2 near Punnawithi Station, valued at over 50 billion baht, which will include a hotel, rental office buildings, and retail space.
  • Muang Thai Life Assurance Group is developing the 66 Tower mixed-use project near Punnawithi Station, covering over 56,000 square meters, which will include a hotel, rental office buildings, and retail space.

With its remarkable growth and comprehensive amenities for living, along with a high Job and Housing Balance, the demand for residences in Bangna continues to rise, establishing it as the New Center of Outer Urban in Bangkok.

Investment Potential in Bangna

         When discussing the investment potential of Bangna, it is clear that there is a considerable demand. This area already has a significant number of job opportunities from office buildings totaling over 580,000 square meters, middle-level employees from various multinational companies, and parents and staff from international schools, all of which represent quality demand. Certainly, the new job opportunities emerging in the near future will attract even more demand to this area, along with a corresponding need for housing.

Overview of the Condo Market

         In the Bangna area, new projects are continually emerging. The launch prices of new condos in Bangna have been steadily increasing, averaging 8% per year. In the past 2-3 years, prices have significantly risen, leading to an average launch price of new projects reaching 92,500 baht per square meter in 2021. This sharp price growth indicates the potential of the area that is on the rise.

Condo Investment

         The Bangna area can generate an average Capital Gain of 3.7-6% per year. The resale prices range from 60,000 to 75,000 baht per square meter. For rental condos, prices vary depending on the size and type of the unit. The average rental rate for a studio is 6,000-8,500 baht per month, for a one-bedroom unit is 7,000-10,000 baht per month, and for a two-bedroom unit, the rental price ranges from 10,000 to 18,000 baht per month. Overall, the return from rental investments generates an average Rental Yield of 5-6% per year, which is quite favorable. The tenant demographic in this area includes office workers, students, foreign teachers (natives), medical personnel from private hospitals in the area, and employees in various industries, from general staff to executives, all of whom represent a strong purchasing power.

         Terra Research believes that the condo market in this area is highly conducive for both living and investment. With the selling prices of new condos in this area being reasonable and offering great value compared to the area's potential, along with decent returns, those following news of new condo launches will find that Bangna is set to welcome new projects, including THE MUVE Bangna by Sansiri, with an average selling price starting at 61,000 baht per square meter, making it an interesting project for both living and investment in this promising location.