Charoennakhon Riverside: The Hidden Value of the Thonburi Side

Apr 10, 2019 | view 15,029

Charoennakhon Riverside: The Hidden Value of the Thonburi Side

The riverside area along the Chao Phraya River is currently emerging as a new Rising Star Location. Since the grand opening of the mega-project ICONSIAM in mid-November 2018, the Charoennakhon-Charoengkrung area has seen continuous investment and development of new projects over the past few years. This transformation has turned Charoennakhon-Charoengkrung from a traditional economic zone into a prime area equipped with amenities and a unique charm that is hard to find elsewhere. For this reason, PRUKSA has launched the Chapter Charoennakhon-Riverside, a premium brand project by Pruksa, in one of the best riverside locations in the Charoennakhon area.

Why is 'Charoennakhon' such an attractive residential area comparable to the CBD?

In Bangkok, aside from the old town, the riverside area along the Chao Phraya River is another highlight appreciated by foreigners, whether tourists or expats. Traditionally, the riverside has been home to clusters of luxury 4-5 star hotels on both sides. In recent years, there has been an increase in shopping centers and retail outlets. In the Charoennakhon area, we can see a harmonious blend of modernity and the essence of traditional communities, while still maintaining a vibrant urban atmosphere with shopping and hotel options. Importantly, it is only a 5-minute journey to the heart of the CBD in Silom-Sathorn, accessible by car, boat, and rail.

Car - The road network in the Charoennakhon area runs along the Chao Phraya River, connecting to Krung Thon Buri Road, which allows access to Sathorn via the Taksin Bridge. It also connects to Ratchaphruek Road and Rama 3 Road. For those traveling outside the city, there are expressways available as well.

Boat - As for boat transportation, being adjacent to the Chao Phraya River means there are numerous piers for commuting. You can take a boat across to Taksin Bridge Pier to reach Sathorn or even to riverside shopping centers like ICONSIAM and ASIATIQUE. The Chapter Charoennakhon-Riverside project also offers a shuttle boat service.

Rail - The area connects to the Green Line BTS at BTS Krung Thon Buri, which is only a 3-minute ride from the Chapter Charoennakhon-Riverside project.

Progress of new transportation networks in the Charoennakhon area

In 2019, the Charoennakhon area saw further development of transportation networks. The construction of the Gold Line (Krung Thon Buri-Klong San) began, a project driven by the private sector, aimed at providing a mass transit system that facilitates both residents and tourists in the Charoennakhon area. It is expected to be operational within 2019.

In terms of boat travel, the Chao Phraya Express Boat has redefined its role as a feeder connecting to the BTS system, investing in at least 40 new boats to transport passengers directly to the BTS stations, serving around 13,000-14,000 passengers daily, connecting to six piers: Phra Nang Klao Bridge Pier, Rama 7 Bridge Pier, Bang Pho Pier, Pinklao Pier, Queen Pier, and Sathorn Pier.

Condominiums meet the demand for both actual residence and rental investment

“Charoennakhon” runs along the curve of the Chao Phraya River on the Thonburi side, and the charm of this location, as mentioned earlier, clearly reflects its potential. “Condominiums” are increasingly becoming a residential option in the Charoennakhon area.

The appeal of condominiums in the Charoennakhon area is that they can accommodate both “actual residence”, whether as a second home for weekday living to shorten commuting time or as a weekend retreat to enjoy the charm of the Chao Phraya River with a view of the real CBD.

At the same time, “rental investment” caters to professionals working in the CBD and Sathorn-Silom area, presenting a real estate investment opportunity for investors. Just five BTS stations away, it takes about 10-15 minutes from Krung Thon Buri Station to Silom Station, a densely populated business area in Bangkok, making it an attractive rental market.

The condominium situation on both sides of the Chao Phraya River in the Charoennakhon area

Over the past decade, the condominium market on both banks of the river has seen limited new project launches, averaging about 1-3 projects per year from both small and large developers. In the early years around 2008, condominiums in the Charoennakhon area had an average launch price of about Economy Class 55,000-65,000 THB per square meter. Since then, prices have steadily increased, with condominiums reaching 200,000 - 350,000 THB per square meter by 2012. Following that, the trend of Super Luxury to Ultra Luxury condominiums has emerged in this area, driven by the investment potential of mega projects like ICONSIAM. Examples include The Residences Mandarin Oriental Bangkok with an average launch price of 350,000 THB per square meter, Four Seasons Private Residences Bangkok at the Phra Ya River with an average launch price of 300,000 THB per square meter, and Banyan Tree Residences with an average launch price of 330,000 THB per square meter. Currently, the overall condominium market on both banks of the river has seen an average launch price growth of 11.8% per year.

Pruksa Real Estate is a well-known real estate developer in Thailand and also owns a beautiful plot of land over 5 rai in this area, near Wat Sewat Chaturat, opposite Shrewsbury International School. This plot has a wide riverfront view overlooking the real CBD across the river, and there are no tall buildings obstructing the view, mostly consisting of low-rise houses not exceeding four stories. (Click to view Map Location) This project is called Chapter Charoennakhon-Riverside, and registration is currently open (Click to register). Soon, more details about the project will be available. Interested parties can inquire for more information via LINE@chaptercondominium. We believe that this Pruksa project will be another condominium that appeals to residents who appreciate the view of the Chao Phraya River curve in the heart of Sathorn, with an average price ranging from 130,000-200,000 THB per square meter.

Currently, second-hand condominiums in this area can be rented out, with rental prices varying by room type. For example, a studio can be rented for an average of 14,000-17,000 THB per month, a one-bedroom unit for an average of 20,000-38,000 THB per month, a two-bedroom unit for an average of 35,000-60,000 THB per month, and a three-bedroom unit for an average of 70,000-100,000 THB per month. This can yield an average rental yield of 4.2-5.2% per year. Meanwhile, the overall average selling price for second-hand condominiums in this area is between 105,000-190,000 THB per square meter, allowing for an average capital gain of about 5.8-9% per year, which is quite favorable.

Finally, “Charoennakhon” is not only a location that accommodates personnel working in the heart of the city, Silom-Sathorn, but it also reflects the area's growth potential through private sector real estate investments and upcoming public transportation networks. This enhances the living conditions for residents, and with the limited space along the curve of the Chao Phraya River, it increasingly drives “Charoennakhon” to become a hidden value location on the Thonburi riverside. Chapter Charoennakhon-Riverside is a condominium in the Charoennakhon area (Click Map Location) from Pruksa Real Estate. Registration to view the project is now open (Click to register). You can inquire for more information via LINE @chaptercondominium starting today.