In the past 2-3 years, the world has faced a pandemic of emerging diseases, prompting many countries to prioritize medical science significantly. Thailand is one of the countries that has managed the health crisis well and is recognized for its high medical standards in Asia.

Did you know that one of the largest medical centers in the country is located in the ' Phayathai ' area? This area is densely populated with medical institutions, innovation centers, educational institutions, and research facilities, making Phayathai the most prominent academic and healthcare hub in the country.

 

Phayathai: A Future Medical Innovation Hub Ready to Attract Growth

From the intersection of Phayathai Road - Rama 4 Road extending to Phaholyothin Road near the Saphan Khwai area, Phayathai is centrally located in this area. Importantly, this location hosts over 40 hospitals, medical institutions, health centers, research facilities, and academic institutions, providing more than 7,500 beds and employing over 25,000 medical personnel.

With its potential as the most outstanding medical institution hub in the country, Phayathai has been elevated to a Medical District under the urban development project 'Yothi Medical Innovation District (YMID)', the center of medical innovation in the country, focusing on creating innovations in three areas: Medtech, Govtech, and Citytech. This initiative aims to enhance medical research and promote new medical innovations, businesses, and startups in the area, centered around Ramathibodi Hospital and the Yothi Innovation District on a 16-rai, 3-ngan, 30-square-wa site, with a budget of 11,629.65 million baht, and a project duration of 6 years from 2022 to 2028, which includes:

 

  • A 28-story hospital building with an area of 191,000 square meters, housing an 800-bed hospital, Yothi Innovation District, a medical innovation development center, YMID Co-working Space, clinical research areas, and office spaces.
  • A 4-story public utility building with an area of 8,000 square meters.
  • A 10-story parking building with an area of 40,000 square meters, accommodating approximately 1,200 vehicles.
  • A 10-story office building with an area of 36,000 square meters.

The Yothi Medical Innovation District (YMID) will become a center for medical innovation, facilitating funding and research, attracting startups and new demand in the medical field to the area.

 

Phayathai: Another Mixed-Use Center to Watch

 Phayathai is another location worth watching as a new leading employment area in inner Bangkok. From Phayathai Road to Phaholyothin Road near Saphan Khwai, there has been significant growth in new office buildings, both medium and large. Following the opening of premium office buildings like Spring Tower, the total number of office buildings has exceeded 50, with over 1,000,000 square meters of office space.

 

The influx of leading office buildings has attracted new demand in the area, especially from startups and emerging businesses seeking office locations with convenient access via the BTS and complete amenities.

The team from Terra Research has surveyed the current atmosphere around Phayathai and found that even under the COVID-19 situation, the weekday atmosphere remains vibrant with a diverse workforce, including visible expatriates such as Europeans and Singaporeans. This aligns with data showing that the proportion of Thai companies and global companies renting office space in Phayathai is quite similar, with a majority being education startups, marketing agencies, pharmaceutical and medical startups, software and computer system companies, export businesses, machinery and engineering firms, real estate businesses, and leading headhunter companies, with registered capital ranging from 1 million to 8 billion baht. The arrival of new tech companies reflects the growth of office spaces in the area, attracting potential demand from both startups and expats clearly.

Certainly, the new demand will not stop here, as there are many new office buildings set to open along Phayathai Road to Phaholyothin Road, including:

  • ONE ORIGIN Phayathai Complex  is a mixed-use project in the heart of Phayathai, 31 stories high, featuring two global hotel brands, Hotel Indigo and Holiday Inn Express, with a project value of 3.6 billion baht.
  • The Unicorn is a mixed-use project under construction, located next to BTS Phayathai, 51 stories high with 2 basement levels, offering a total rental area of 20,174 square meters, including a 5-star hotel, grade A office space, retail space, and premium residences.
  • JRK Tower is a mixed-use project that many are watching, as it is the last large plot of land in Ratchathewi-Phayathai, 45 stories high with 1 mezzanine level and 4 basement levels, including a hotel, office space, retail space, restaurants, and parking facilities, currently under construction.
  • ONE ORIGIN Sanampao is a grade A office building next to BTS Sanampao, 25 stories high with 34,000 square meters of rental space, divided into office and commercial areas.
  • Vanit Place Aree is a premium office building in the Aree area, 31 stories high with 3,000 square meters, comprising office and retail space.
  • THE RICE by SRISUPHARAJ is a mixed-use project in Phayathai, 26 stories high, including retail and office space.
 

The Unique Charm of Phayathai

It is not just continuous growth that attracts new demand to the area; Phayathai also possesses distinctive characteristics, such as its potential as an Inner Urban Area connecting the city center with northern Bangkok and the future Bangsue Grand Station. The transportation potential as an Interchange for the BTS and Airport Link, along with abundant amenities, including shopping centers, various dining options, hangout spots, hotels, educational institutions, and hospitals.

Being an inner-city location that is comprehensive in terms of living, employment, lifestyle, and transportation, connecting to other transportation hubs like Suvarnabhumi International Airport and Bangsue Grand Station, makes Phayathai diverse in its population, including office workers, medical personnel, businesspeople and entrepreneurs, students, and expats, which is a group that is likely to increase.

The Phayathai area will not only serve as an inner-city location connecting the CBD and Outer Urban Area but will also become a mixed-use center for tech companies and a Medical District, the country's medical innovation hub, ensuring that Phayathai can attract new populations, especially expats from tech companies and the medical tech sector.

 

Growth of Land Value (Capital Gain)

When discussing the potential of the Phayathai area, it is evident that this location has shown significant growth over the past 10 years. The assessed land price has increased by over 100%, currently at 400,000 baht per square wah, doubling compared to the period of 2008-2011. The continuously growing assessed land value in Phayathai reflects the area's growth potential well. Given that most of Phayathai's land is government-owned, private land is limited, which will certainly increase in value in the future. Coupled with the continuous growth of office buildings, mixed-use centers for tech companies, and the Medical District, all these developments promote an increase in land value in this area.

The growth of various mega projects attracts traffic to the area from tech companies and medical tech sectors, presenting opportunities for short-term capital gains in this location. This area is developing hotels like Hotel Indigo and Holiday Inn Express under the Intercontinental Hotel Group by ONE ORIGIN, expected to be completed around 2022. Once these projects are finished, they will transform the land, enhancing livability and attracting foreign tenants significantly.

 

Why is 'Phayathai' a Worthwhile Investment Location?

Many may wonder why they should invest in this location? It must be said that due to the potential of 'Phayathai', an area dubbed as “a significant medical innovation hub of the country,” it can attract high-quality medical demand and many leading personnel into the area. Additionally, it is filled with high-purchasing-power tenants from the expat community in tech companies. These individuals typically hold stable positions with relatively high incomes, and some even receive housing allowances from their companies, enabling them to afford higher rental prices. They often seek residences with comprehensive amenities and services beyond typical condos or apartments, making serviced apartments the ideal housing option for this demand.

The appeal of investing in serviced apartments lies in their long-term rental nature, similar to regular apartments, but with the potential for higher rental rates, not subject to typical price negotiations. The clientele will be high-potential tenants seeking hotel-level services with 5-star hotel-standard amenities. The medical hub nature of Phayathai attracts leading medical personnel from around the world to engage in research and develop medical innovations in the area, including expats with benefits supporting long-term stays. This not only results in higher rental rates but also ensures consistent rental income according to the employment contracts of foreign tenants.

Given all the aforementioned potential, 'Phayathai' is a location of growth with a promising future. With numerous mega projects entering the area and the abundance of various amenities attracting quality populations, it is undoubtedly a location worth adding to your investment portfolio.