Rama 9 Area has been a consistently strong location for the past 3-4 years. Many are already aware that it is a New CBD and a Superstar in terms of office buildings, public transport systems, travel, and comprehensive amenities. However, there is another aspect that has not been widely discussed. Just a little further from Rama 9-Ratchada, along the new Phetchaburi Road, there exists a Niche Market of high-income groups, particularly in the hospital sector.

            To clarify, the Rama 9-Phetchaburi area is home to several large and quality hospitals, including Bangkok Hospital, Rama 9 Hospital, and Piyavate Hospital. Additionally, there are also Camillian Hospital, Klongtan Hospital, and Phetvej Hospital nearby.

            It is well-known that the demand for hospitals is a high-potential demand group, both in terms of income and job security. Furthermore, leading private hospitals have the potential to attract high-quality demand, such as patients who can afford to pay. In this article, TerraBKK focuses on leading private hospitals in the vicinity, such as Bangkok Hospital, Rama 9 Hospital, and Piyavate Hospital.

Bangkok Hospital

            For over 40 years, Bangkok Hospital has been providing services and is accredited by the Joint Commission International (JCI), the largest medical standards organization in the world. This alone is enough to affirm that Bangkok Hospital is truly a leading private hospital in Thailand.

            Bangkok Hospital is a 343-bed facility comprising 56 specialized treatment centers and clinics, along with an international patient service center that caters to patients from over 160 countries worldwide. It also has specific patient service centers for countries such as Japan, the Arab nations, Myanmar, Bangladesh, and other international patients, as well as a travel and tourism medicine clinic.

            Bangkok Hospital is under Bangkok Dusit Medical Services Public Company Limited, which also includes Bangkok Heart Hospital, Bangkok Hua Hin Hospital, Samitivej Chinatown Hospital, and Vadhana Hospital. In 2017, Bangkok Dusit Medical Services Public Company Limited reported revenues of over 13.317 billion baht, a growth of 19.3% from 2016, with an average of 33,052 patients per day, including 4,639 international patients. This reflects the popularity of foreign patients seeking services.

Rama 9 Hospital

            Nearby, Rama 9 Hospital is another quality private hospital accredited by the Joint Commission International (JCI). The hospital comprises two medical institutes and 20 medical centers, along with medical personnel across various fields, including full-time doctors, part-time doctors, consultants, nurses, and other medical staff, totaling 1,986 personnel.

            In terms of services, Rama 9 Hospital has 166 registered beds and has received 432,314 outpatient visits, generating revenue of 2.733 billion baht from 2018.

Piyavate Hospital

            Piyavate Hospital has been in operation for over 24 years and is accredited with Hospital Accreditation (HA) and Joint Commission International (JCI). The hospital has increased its bed capacity from 150 to 200 beds and has four medical centers, including a reproductive medicine center, a diabetic foot treatment center, a neonatal and perinatal center, and an international patient service center. The patient demographic is evenly split between Thai and foreign patients, with the majority of international clients coming from China, the Middle East, Africa, Japan, and CLMV countries.

            In terms of transportation, being located in the Rama 9 area means easy access to all conveniences. Firstly, Si Rat Expressway connects all directions in Bangkok. Secondly, the Airport Rail Link at Makkasan Station and Klongtan Station provide easy access to the eastern part of Bangkok and Suvarnabhumi International Airport. Thirdly, the Blue Line MRT at Rama 9 Station is a major route for electric train travel. Lastly, the Orange Line (Cultural Center-Minburi) is set to open in 2023.

Why? Why is the Rama 9 area seen as capable of supporting both actual residence and rental investment?

            It must be noted that the Rama 9-Phetchaburi area is home to three leading private hospitals, all within a 1.5 km radius, making Rama 9-Phetchaburi a “Medical Location” and also attracts this area to become another “Medical Tourism” hub in Bangkok, with no less than 7,000 medical personnel and a flow of both Thai and foreign patients seeking treatment, reflecting the demand for both short-term and long-term housing. This undoubtedly benefits the condominium market in this area.

Condominium Situation Rama 9

            Previously, new condominiums in the Rama 9-Phetchaburi area were not frequently launched, averaging only one project per year before 2015. However, after that, the awareness of this area increased significantly, with some years seeing up to three new condominium projects launched annually. This reflects that developers also recognize the potential for land development in the Rama 9-Phetchaburi area as well.

           Adjustment of Launch Prices for Condominiums Rama 99   has been gradual from an average of 70,000-80,000 baht per square meter in 2012 to now reaching over 100,000 baht per square meter. This is not as drastic as nearby areas, such as Phetchaburi, where prices have risen from 60,000-70,000 baht per square meter to 150,000-160,000 baht per square meter over the past 7-8 years, or the hottest area last year, Thonglor-Ekkamai, which has already surpassed 200,000 baht per square meter.

            Of course, the rapid growth of launch prices does not guarantee that the trend will continue in the future. Therefore, when considering investing in condominiums, it is essential to evaluate various factors, including the potential of emerging locations. Many people are interested in the returns from holding and renting out properties, which is also quite significant.

            For condominium investments, it is crucial to understand how holding a condominium can generate returns in the form of capital gains. Data shows that holding a condominium in Rama 9 can generate an average capital gain return of 4.5%-8.5% per year. This is a reasonable figure and seems to be slightly higher when compared to nearby areas like Phetchaburi or the hot areas like Thonglor-Ekkamai.

            Meanwhile, the rental returns from condominium investments will vary depending on the size of the unit. Larger units typically command higher rental rates than smaller ones, which is not surprising. The key point is to compare the “rental rates” received with the “price of the condominium” that has been invested in.

            For condominiums in Rama 99 have an average rental price of 340-580 baht per square meter per month. This is lower than nearby areas like Phetchaburi or the hot areas like Thonglor-Ekkamai. However, when comparing rental rates with the average condominium prices, the data shows an average Rental Yield of 5.0%-6.5%, which is not significantly different from the aforementioned nearby or hot areas. This is because the condominium prices in Rama 9 are lower, requiring less investment.

            Additionally, urban land is becoming increasingly scarce over time, which is a reason for the continuous adjustment of land prices. The higher the potential of a location, the greater the opportunity for land prices to adjust. For the Rama 9-Phetchaburi area, if we observe the changes in land valuation over the past 10 years from three main roads: Rama 9 Road, Ratchadapisek Road, and Phetchaburi Road, we find an average increase of 18% from the previous year.

            All of this highlights the distinctiveness of the Rama 9-Phetchaburi area, which is home to several large and quality hospitals such as Bangkok Hospital, Rama 9 Hospital, and Piyavate Hospital, followed by a demand group with high potential in terms of income and job security. The opportunity for housing demand is therefore quite interesting, both in terms of investing in condominiums for residence and for rental purposes, with rental rates in the Rama 9-Phetchaburi area averaging around 340-580 baht per square meter per month over the past four years.