Owning land in the heart of a high-potential area is increasingly valuable and irreplaceable, especially in the Super Prime Area of the city like ‘Chidlom-Lang Suan’, which consistently breaks New High records every time land is sold.

A Look Back at Land Prices Breaking New Highs, Growing Faster Than Gold

Currently, land prices on Phloen Chit Road, Witthayu Road, and Silom Road are appraised by the Treasury Department for the years 2023-2025 at up to 1 million baht per square wah. This is merely an estimated price, as actual transactions have already surpassed 1 million baht per square wah since over a decade ago.

  • 2006: The sale of 9 rai of land from the British Embassy at 950,000 baht per square wah, now known as Central Embassy.
  • 2008: Land from the Sutthas family in Ayutthaya sold for 1.5 million baht per square wah, now the 98 Wireless project.
  • 2015: Land on Chidlom Road sold for 1.9 million baht per square wah, now the 28 Chidlom project, starting at 290,000 baht per square meter.
  • 2016: Land from the Park Nai Lert project at approximately 1.75 million baht per square wah, now the BDMS Wellness project.
  • 2017: Land from the British Embassy at 2.2 million baht per square wah, expected to develop into Central Embassy Extension.
  • 2018: Land near Mater Dei School at 3.1 million baht per square wah, now the Scope Langsuan project, and land on Tonson Road at 2.1 million baht per square wah, now the MUNIQ Langsuan project.
  • 2020: After 14 years, land prices in this area reached 3.9 million baht per square wah, with land on Sarasin Road expected to develop into a condominium starting at 600,000 baht per square meter.

It is evident that each project in this area has been developed into flagship and super luxury projects, reflecting the increasing wealth of the location and guaranteeing that owning a project here will be surrounded by leading developments in the future.

Factors Contributing to the Growth of Chidlom-Lang Suan

It is not just the Super Prime Area status that makes this location more valuable than gold; it is also the fact that there is almost no vacant land left for development. Currently, landowners in the area are waiting for the right moment to sell, and when sales occur, it increases land value, leading to more exciting new projects. There are currently 11 plots of land worth watching, both Freehold and Leasehold.

  1. Leasehold land adjacent to BTS Chidlom from the Crown Property Bureau, expected to develop into a mixed-use project.

  2. Freehold land on Chidlom Road, expected to develop into a condominium.

  3. Leasehold land in Soi Kid Som Kid, expected to develop into a condominium.

  4. Freehold land on Phloen Chit Road, priced at nearly 4 million baht per square wah.

  5. Freehold land on Witthayu Road, developing into The Embassy at Wireless project.

  6. Freehold land in Soi Tonson, developing into Na Varang Langsuan project.

  7. Freehold land on Sarasin Road, priced at 3.9 million baht per square wah, expected to develop into a condominium with the highest price per square meter in the country, starting at approximately 600,000 baht per square meter.

  8. Leasehold land at the corner of Lang Suan and Sarasin Roads, developing into Sindhorn Wellness Village project.

  9. Freehold land on Witthayu Road, expected to develop into a condominium.

  10. Leasehold land currently being developed into ONE BANGKOK project.

  11. Leasehold land of the old Dusit Thani Hotel, currently being developed into Dusit Central Park project.

(Thanks to information from ClubSunday Condo Story)

A Central Location Elevated from Mixed-use

Looking at the Super Prime Area square of Bangkok, such as Rama 4-Lang Suan-Witthayu-Chidlom, it is clear that besides land deals being developed into Freehold or flagship projects, there are also Leasehold lands that will be developed into mixed-use projects, which are massive projects worth over 100 billion baht, further enhancing the location. These include Central Embassy, Sindhorn Village, ONE Bangkok, and Dusit Central Park, covering approximately 193 rai or a total building area (GFA) of about 2.7 million square meters, collectively valued at over 180 billion baht, expected to attract more than 100,000 people daily.

Why are mixed-use projects important for elevating the location? If we look at the successful example of Marina Bay in Singapore, which is a city-transforming project that has been ongoing for over 30 years with more than 15 projects covering approximately 1.9 million square meters, accommodating up to 477,000 people. (Read the article about the mixed-use project around Lumphini Park and Marina Bay at The Future Around Lumphini Park of the Mixed-use Project)

Although the mixed-use projects in the heart of Bangkok are not developed according to a large master plan like Marina Bay, the high-density and diverse land use in the city center helps create economic value and increase land price potential, making it possible to expect attraction and elevation of the location to the next level.

Opportunities and Demand from Foreigners

In addition to the plots of land currently under development, the current environment in the area is surrounded by leading establishments that can attract potential demand and high-spending groups, including over 40 office buildings with a total area of approximately 1.16 million square meters, featuring Grade A office buildings with the highest rental rates per square meter, such as Park Venture and Gaysorn Tower. Additionally, this area hosts over 24 embassies, including the Embassy of the Netherlands, the Embassy of Switzerland, the Embassy of the United Kingdom, the Embassy of the United States, the Embassy of Italy, and the Embassy of Japan, among others. There are also over 15 four- to five-star hotels and world-class services like Central Embassy and BDMS Wellness Clinic, reflecting the hidden purchasing power from foreigners in the area.

The Growth of Supply in Chidlom-Lang Suan-Witthayu Condominiums

The overall launch of new condominiums in the Chidlom-Lang Suan-Witthayu area, as compiled by Terra Research, shows that there has been an average of 1-2 new projects launched per year, with some years seeing as many as 5 projects. However, the number of units is not very high, and the launch prices of new condominiums in this area have increased in line with the growing potential of the location.Launch prices have grown at an average of 18% per year, from an average launch price of 100,000-150,000 baht per square meter in 2004 to an average launch price of 350,000 baht per square meter in 2018. This year, a new Leasehold condominium project is expected to launch at around 250,000 baht per square meter. For Freehold condominiums in the future, prices may rise to 600,000 baht per square meter due to current land costs being traded at 3 million baht per square wah.

Updates on Projects in the Chidlom-Lang Suan-Witthayu Area

Currently, the Chidlom-Lang Suan-Witthayu area has about 6 projects still on sale. If we look at the price levels, the lowest-priced projects are Leasehold, which is normal as Leasehold condominiums are typically 20-30% cheaper than Freehold condominiums.

The Leasehold projects still on sale include Baan Sindhorn and The Residences at Sindhorn Kempinski, which are long-term leasehold condominiums with a 30-year lease (extendable for another 30 years). Current selling prices are between 200,000-250,000 baht per square meter, and they are completed and ready to move in. The Freehold projects still on sale include:

  • MUNIQ Langsuan: A high-rise project nearing sell-out, with current closing prices around 250,000 baht per square meter.
  • 28 Chidlom: A high-rise condominium, a rare item on Chidlom Road, with current prices at 290,000 baht per square meter, a price that is no longer available in Chidlom Soi, as there are only a few plots left. In the future, if new projects come in, prices will definitely increase.
  • Tonson One Residence: A high-rise project expected to be completed this year, with current selling prices starting at 330,000 baht per square meter.
  • SCOPE Langsuan: A high-rise project just completed, with starting selling prices around 460,000 baht per square meter.

Currently, land in this area is changing hands to various developers, and many new condominium projects are expected to emerge, including:

  1. Soonthareeya Ratchadamri: A Leasehold condominium (30-year lease) currently under construction and expected to launch for presale soon, with average selling prices starting around 200,000-250,000 baht per square meter.
  2. Nimit Langsuan: A Freehold condominium that is being constructed again, expected to have a new higher price this time.
  3. Navarang Langsuan: (currently Portico land) is a condominium in the launch plan of Navarang Asset, expected to have starting selling prices not lower than 400,000 baht per square meter.
  4. Aman Nai Lert Residences: A branded residence hotel project with a 30-year lease, with reported prices around 900,000 baht per square meter, making it the most expensive Leasehold project in Thailand, expected to be completed by 2023.
  5. The Embassy at Wireless: A joint venture condominium between Hongkong Land and Noble, expected to have launch prices starting at 300,000-400,000 baht per square meter.
  6. Sansiri: A plot of land at the corner of Sarasin Road, where Sansiri broke the New High record by purchasing land at 3.9 million baht per square wah in mid-2020, expected to develop into a condominium starting at 600,000 baht per square meter, which will be the most expensive condominium per square meter in Thailand.
  7. HKR x Swire Properties: Swire Properties announced the acquisition of a 40% stake in land on Witthayu Road opposite Lumphini Park from HKR International, planning to develop it into a luxury condominium.

As mentioned above, it is clear that the current land transaction prices exceed 3 million baht per square wah. With the increasing land value, it will be difficult to find land sold for less than 3 million baht per square wah in the future. Given the high land costs, condominium prices will also rise significantly, with selling prices per square meter likely starting at 500,000-600,000 baht. Purchasing a condominium in this area now represents the best opportunity.

Investment Opportunities in Chidlom-Lang Suan-Witthayu Condominiums

The Super Prime Area and its status as a world-class destination attract potential demand from foreign tenants and high-spending individuals. Renting out condominiums in this area can generate Rental Yields of approximately 3.4%-6.2% per year, depending on the project level, condition, and room decoration. Monthly rental prices vary based on size, type of room, and accommodation style.

For Freehold condominiums, studio units (24-40 sq.m.) rent for 17,000-40,000 baht per month; 1-bedroom units (28-106 sq.m.) rent for 25,000-70,000 baht per month; 2-bedroom units (45-140 sq.m.) rent for approximately 30,000-140,000 baht per month; 3-bedroom units (80-290 sq.m.) rent for 60,000-300,000 baht per month; and 4-bedroom units (250-380 sq.m.) rent for 250,000-350,000 baht per month.

For Leasehold condominiums, rental rates can be higher due to larger room sizes. For example, 1-bedroom units (48-90 sq.m.) rent for 45,000-120,000 baht per month; 2-bedroom units (80-240 sq.m.) rent for approximately 60,000-120,000 baht per month; 3-bedroom units (85-360 sq.m.) rent for 75,000-400,000 baht per month; and 4-bedroom units (230-385 sq.m.) can rent for 350,000-450,000 baht per month.

Leasehold and Freehold condominiums each have their pros and cons. The advantage of purchasing a Leasehold condominium is that it is generally cheaper than a Freehold condominium by about 20-30%, and the post-sale care from the project owner ensures that the project remains beautiful and well-maintained throughout the lease term. The downside is that ownership is not held outright, only lease rights, which typically last for 30 years and can be extended for another 30 years, depending on agreements with the landowner, and the value of the project will decrease over time as the lease term progresses.

In contrast, Freehold projects allow for 100% ownership, similar to regular condominiums, with freedom to hold, renovate, repair, decorate, rent out, sell, or pass down as inheritance. Over time, the value of the property (Capital Gain) will only increase with rising land prices in the future. Although they are priced higher than Leasehold condominiums, they can rent out just as well and can increase property value and rental rates through room decoration and maintenance.

The Growth of Second-hand Condominium Prices

Changes in second-hand condominium prices reflect the growth of location value and long-term investment potential. Prices for second-hand condominiums in this area have continuously increased, with Freehold condominiums seeing an average price increase of 8% per year, from approximately 100,000-150,000 baht per square meter over 10 years ago to 300,000 baht per square meter today. Meanwhile, Leasehold condominiums have seen an average increase of 6% per year.

The Super Prime Area and the growth of the location in every dimension reinforce the potential of the ‘Chidlom-Lang Suan’ area as a Super Prime Area that continues to increase in value, akin to possessing an asset that appreciates more than gold.