It is not surprising to see Vibhavadi Rangsit Road transforming into a new business avenue. Since the BTS skytrain was introduced to the area in 1999, commercial development has surged, including office buildings and shopping centers such as the headquarters of Thai Military Bank, Sun Tower, PTT headquarters, Energy Complex, Union Mall, and even the renovated Central Plaza Ladprao, along with an increase in retail shops and commercial buildings.

From Residential Area to a New Business District in the Capital

          Although this area was once primarily residential, the increase in public utilities has led to rising land prices. According to the Land Department's valuation from 2016 to 2019, land prices along Vibhavadi Rangsit Road (Huai Khwang District) were around 220,000 baht per square wah, while in Jatujak District, prices ranged from 150,000 to 260,000 baht per square wah, and in Don Mueang District, it was 120,000 baht per square wah. Prices are expected to rise further with various mega-projects, especially large-scale rail transport connections, including regular trains, skytrains, and high-speed trains linking Bangkok and its suburbs, as well as regional connections to the North and Northeast. This will lead to a surge in real estate developments, including condominiums, serviced apartments, and office buildings to accommodate the area's expansion.

Mixed-Use: The New Trend in Real Estate

          The future of real estate development is likely to shift away from standalone residential projects towards mixed-use developments that offer a variety of functions for profitability and utility. This concept, known as “Mixed-use Real Estate,” combines residential and commercial properties. The most appealing mixed-use projects typically include shopping centers, offices, entertainment venues, and residences. Mixed-use developments can yield higher returns than other types of projects and are often supported by government initiatives, as the land can be utilized more efficiently.

          For small investors looking to profit from real estate, the comprehensive nature of mixed-use projects can significantly enhance the value of their holdings. These projects are often located in areas with promising future growth, such as locations expected to have skytrain access or major shopping centers, which can lead to rapid price increases even before the infrastructure is completed. This is a crucial factor attracting interest in the real estate business amidst a competitive market and a growing condominium sector, both in terms of unit numbers and prices, despite the trend towards smaller living spaces. People are motivated to buy for various reasons, including new housing, second homes near work, investment, or as assets to pass on to future generations.

LPN Sets Its Sights on Vibhavadi with Lumpini Tower

Meeting Every Investment Style

          Speaking of mixed-use projects and the growth of the Vibhavadi Rangsit area, L.P.N. Development Public Company Limited (LPN) launched the “Lumpini Park Vibhavadi Jatujak” project in mid-last year. Located on Vibhavadi-Jatujak Road, Soi Vibhavadi 3, the project spans over 8 rai and consists of four mixed-use condominium buildings, including two office buildings (A and B) under the name “Lumpini Tower Vibhavadi-Jatujak” and two residential buildings (C and D).

          This project represents LPN's strategy to expand its Recurring Income business model, particularly for office buildings A and B, following the success of their office developments in 1989 with Lumpini Tower (Rama 4 Road) and LPN Tower (Rama 3 Road).

          The project's location on Vibhavadi Rangsit Road is ideal for companies seeking new office spaces with potential, as many businesses are looking for offices in the Vibhavadi-Jatujak area to be closer to clients, suppliers, or employees, most of whom are located in this area or in the northern parts of Bangkok, while still being conveniently accessible to the city's business center.

          The appeal of the project for businesses seeking office space lies not only in the location's potential but also in LPN's customizable office designs that cater to various budgets. This offers clients convenience beyond the typical bare-shell office handovers. Additionally, the project's design adheres to the “TREES” (CS) green building standards, focusing on energy conservation and environmental sustainability, promoting efficiency and the well-being of building users through thoughtful design, low-emission materials, and high construction standards. This helps reduce health issues caused by pollution and dust within the building, enhancing safety, efficiency, and comfort in the workplace under the concept of “Green Inspired 24/7.”

          Furthermore, it improves work efficiency and reduces energy and maintenance costs throughout the building's lifespan, resulting in a higher Net Present Value (NPV) and a quicker Discount Payback Period compared to conventional office buildings. Therefore, it is believed that the project will succeed in leasing and selling within a short time, as land prices per square meter for office development in this area are not as high as in the inner CBD areas like Sukhumvit or Silom, making it an excellent option for those looking to establish offices in this promising new development area.

Thank you for the information from www.lpn.co.th