Ratchadapisek Road is another important road that connects the Rama 9 and Ladprao areas over a distance of approximately 10.5 kilometers, from the Rama 9 intersection to the Ratchayothin intersection. There are future electric train projects planned to connect with the existing MRT subway at two points, along with numerous upcoming Mega Projects in the Rama 9 – Ratchada area, which is a new business hub expanding from inner Bangkok. It is no surprise that this location is an attractive area for residential living, job opportunities, or even real estate investment for rental purposes.

Why is Ratchadapisek Interesting?

Ms. Nalinnarat Charoensupong, Managing Director of Nexus Property Marketing Co., Ltd., stated, "Ratchadapisek Road connects several major roads, including Ladprao Road, Sutthisan Road, and Rama 9 Road. The three roads intersecting in this area create distinct characteristics in terms of residential density, office spaces, and shopping centers, which also reflect the property prices in those areas. The Ratchadapisek area encompasses (1) Ratchada-Rama 9 zone, (2) Ratchada-Sutthisan zone, and (3) Ratchada-Ladprao zone. In terms of residential living, the strengths of these three locations can cater to lifestyle, work, and convenient travel via the rail system. In terms of pricing, this area has seen an average price growth rate of 9.3% per year over the past five years, from an average price of 86,900 baht per square meter in 2013 to 116,000 baht per square meter in 2016." The price increase aligns with the average growth rate of 10% per year in inner Bangkok, indicating a consistent upward trend in property prices. When comparing the sub-zones of Ratchada, (1) the Ratchada-Ladprao area has a significantly higher growth rate than inner Bangkok, averaging 15% per year, reflecting its investment potential and community growth; (2) the Ratchada-Sutthisan area has an average price growth rate of 5% per year, reflecting market growth and demand from the middle-class customer segment; (3) the Ratchada-Rama 9 area has an average price growth rate of 8% per year, making it a potential location close to business districts.

In terms of condominium investment in this area, the average rental yield is 5.39%. Compared to inner Bangkok, where the average yield is around 3-5%, this makes condominiums in this area attractive for rental investment, especially since it is close to office zones and has potential for sales and rentals to foreign clients.

When analyzing the unique characteristics that allow Ratchadapisek to be divided into three sections:

Ratchada-Rama 9 Zone (A city-connected area filled with amenities and future office hubs)

The Ratchada-Rama 9 zone spans from the Rama 9 intersection to the MRT Cultural Center station, with a total supply of 6,279 units and a sales rate of 89%. The average price level is 132,600 baht/sq.m., making it the highest average price per square meter in the Ratchadapisek area. This location connects to Asoke-Sukhumvit, a high-priced land area in Bangkok, and has many shopping centers, including Central Rama 9, Fortune, Esplanade Ratchada, and The Street, along with office buildings from major developers such as SET, True Tower, and AIA. Additionally, there is a trend of urban expansion in this area due to various Mega Projects, such as the Super Tower and Makkasan projects, with a total project value exceeding 340 billion baht. This location is therefore appealing for those seeking condominiums close to the city center, with easy access to the heart of the city in just two stations, surrounded by amenities at lower prices than condominiums along the Sukhumvit BTS line.

Ratchada-Sutthisan Zone (A tourist and office area transitioning to a middle-class community)

The Ratchada-Sutthisan zone stretches from the MRT Cultural Center station to the Tiwanon intersection, with a total supply of 3,305 units and a sales rate of 93%. The average price level is 117,875 baht/sq.m., approximately 11% lower than the Ratchada-Rama 9 zone. This area is filled with offices and tourist attractions, with a significant number of Chinese and Korean tourists residing here. It also connects to Ladprao Road and can be accessed from Sutthisan Road. Furthermore, there are plans for an orange line electric train project passing through the MRT Cultural Center station, providing further growth opportunities for this zone in the future.

Ratchada-Ladprao Zone (An area connecting to several suburban routes, with a community feel and value for money)

The Ratchada-Ladprao zone extends from the Sutthisan intersection to the Ratchayothin intersection, with a total supply of 5,256 units and a sales rate of 68%. The average price level is 100,200 baht/sq.m. Numerous new condominium projects have emerged in this zone due to the clear construction schedule for the future yellow line electric train, resulting in several unsold units from new projects launched within the past year. This area is a residential and small office neighborhood, community-oriented, filled with street food restaurants. The Ratchada-Ladprao area is another suitable location for those looking for value-for-money condominiums while still enjoying convenience, as it allows access to the city within 15 minutes via the MRT. Additionally, there are future high-speed train projects in the Bang Sue area, not far from this location, making it a noteworthy area due to its proximity to several intersection points.

In the near future, by 2020, which is the scheduled completion date for the yellow line electric train project, the Ratchadapisek area is expected to attract more investor interest for project development, especially at the junctions of both the yellow and orange train lines, which are already under construction. Moreover, there are extension projects from the yellow line at the Ratchada-Ladprao intersection connecting to the green line at the Ratchayothin intersection, which is currently under further study. Currently, there are 1,697 new condominium units available for sale in the Ratchada area within the past six months, and several major developers are starting to secure land for new project developments or expansions since late 2017. Therefore, it is not surprising that the area from the Rama 9 intersection to the Ratchayothin intersection has become more vibrant over the past 1-2 years and is a location to watch regarding condominium prices, which are likely to rise in line with the average price growth in the Ratchada zone.

Thank you for the information from http://nexus.co.th/