About 10 years ago, the Rama 9 area was dubbed the New CBD after the arrival of several mega projects, transforming it into another business district in Bangkok.

            However, in the present and near future, the Ha Yaek Lat Phrao area has emerged as a hot new location to watch, poised to embrace numerous mega projects from various sectors. It also benefits from being an interchange for two major subway lines: the Green Line and the Blue Line, which are the main arteries for transportation in Bangkok. What will make the Ha Yaek Lat Phrao area the Next New CBD or Northern CBD? TerraBKK summarizes as follows:

 

            The current land prices listed on terrabkk.com are comparable to office zones like Phaholyothin-Ari. Typically, land price adjustments occur in two scenarios: speculation by brokers and rapid development of the area. In the case of Ha Yaek Lat Phrao, TerraBKK Research believes it is due to the operational launch of the Green Line extension, which directly connects to the city without needing to transfer lines. Furthermore, once the Ha Yaek Lat Phrao station opens, it will become an Interchange station connecting BTS and MRT. Besides transportation development, other factors also contribute to making “Ha Yaek Lat Phrao” a Compact area on par with international standards.

            “Compact Location” refers to an area that is fully equipped for all aspects of living, whether it be residential, work, retail, or convenient transportation. Therefore, for any location to be considered a Compact Location, it must have everything necessary without the need to venture out to other areas for facilities.

3 Factors That Will Make the Ha Yaek Lat Phrao Area a Compact Location on Par with International Standards

Although the Ha Yaek Lat Phrao area may not have a plethora of multi-billion baht mixed-use projects like other locations, it is important to note that it hosts several large-scale government projects, leading to anticipated changes in the Ha Yaek Lat Phrao area at both the local and national levels. The factors driving the Ha Yaek Lat Phrao area towards becoming a Compact Location include:

Interchange of the Two Most Important Subway Lines in Bangkok

            Previously, the Ha Yaek Lat Phrao area was only served by the Blue Line subway, facilitating travel to the city center. The Blue Line runs in a circular route around the city, passing through key points such as the New CBD Rama 9, Sukhumvit, and Silom, making it a very important line.

However, since August 2019, when the Green Line extension at Ha Yaek Lat Phrao station began trial operations, it has seen up to 37,000 passengers per day. After the Green Line connects to Kasetsart University station, the passenger volume has reached 100,000 trips per day.

Being an interchange for both the Green and Blue subway lines not only elevates the transportation capabilities of the Ha Yaek Lat Phrao area but also bridges the gap between inner Bangkok and northern Bangkok. Moreover, these two subway lines are the most crucial in Bangkok, providing direct routes into the CBD and other important city centers, allowing residents in the Ha Yaek Lat Phrao area to travel to the city center seamlessly, showcasing the increased transportation potential that fills the previous gaps in the Ha Yaek Lat Phrao area.

Major Projects Enhancing the Potential of the Ha Yaek Lat Phrao Area

            The Ha Yaek Lat Phrao area has already been home to clusters of office buildings, thanks to its strategic transportation connections via three major roads in Bangkok: Vibhavadi Rangsit Road, Phaholyothin Road, and Lat Phrao Road. During the period from 1987 to 2002, before the arrival of the subway, this area stood out as a job hub for northern Bangkok, attracting a diverse and stable demand from various businesses, including energy, environmental, oil, finance, real estate, government, and state enterprises. These elements confirm that the Ha Yaek Lat Phrao area already possesses significant potential. With the addition of some private sector projects and a wave of large-scale government initiatives, the potential of the Ha Yaek Lat Phrao area can be elevated at both the local and national levels, making it one of the most transformed areas in Bangkok.

Changes at the Local Level         

            In this year, the Ha Yaek Lat Phrao area will further enhance its potential with the arrival of new office buildings and mixed-use projects that will attract higher-quality demand, including:

  • S Oasis  A 36-story mixed-use project comprising office space and retail areas, covering over 53,000 square meters, with a project value of 3.695 billion baht, expected to be completed in 2021.
  • Ratchayothin Hills A mixed-use project featuring office buildings, hotels, a conference center, fitness facilities, and retail spaces, with a total usable area of 49,000 square meters, expected to be completed in 2023.
  • BTS + CPN A nearly 50-rai mixed-use project eagerly awaited by many, with an estimated project value of 20 billion baht, comprising condominiums, office buildings, retail spaces, and hotels. Currently, no final decisions have been made, but progress is expected soon.
  • Mochit Complex A mixed-use project consisting of office buildings and retail spaces, covering over 75,000 square meters, with a project value of 26 billion baht, expected to be completed in 2023.

Changes at the National Level

Projects that will elevate the Ha Yaek Lat Phrao area into a Compact Location include government initiatives such as:

  • Bang Sue Grand Station The largest rail transport station in the country, capable of accommodating over 100,000 passengers daily, enhancing transportation in Bangkok and Thailand to match that of major global cities. It also includes the development of the area around Km. 11, which will create a new city within the city in the Ha Yaek Lat Phrao area. The development plan is divided into:
    • Zone A: Smart Business Complex – Adjacent to Bang Sue Grand Station in the south, covering approximately 35 rai, designated for commercial development in retail formats, including shops, restaurants, beverage outlets, and logistics service businesses, as well as hotels supporting tourism activities.
    • Zone B: ASEAN Commercial and Business Hub– Covering approximately 78 rai, developed as a commercial area for wholesale and retail, building upon the Chatuchak market. Additionally, there will be modern office buildings, hotels for business travelers, exhibition halls, auditoriums, and accommodations.
    • Zone C: Smart Healthy and Vibrant– Covering approximately 105 rai, currently home to the Transport Company Limited (BorKorSor), which will be developed into residential areas adjacent to recreational spaces and workplaces.
    • Zone D: World Renowned Garden Interchange Plaza– Covering approximately 80 rai, developed as a transportation hub on Phaholyothin Road with connecting walkways for transport systems.
    • Railway Industrial Estate Km. 11– Covering approximately 279 rai, with development divided into office buildings, international conference and exhibition centers, international hospitals, residential areas near parks, and accommodations for railway staff.
  • Bangkok Terminal A new bus station in Bangkok that upgrades the old Mo Chit transport station, which will not only serve as a transport hub but also include mixed-use projects, expected to open in 2027.

The arrival of mixed-use projects from both the public and private sectors will significantly increase the supply of rental office space in the 3-kilometer radius, which currently stands at approximately 1,030,000 square meters, by over 200,000 square meters. Coupled with being a Transportation Hub with both rail and bus systems, this will result in over 100,000 people entering and exiting the area, with nearly 50,000 people working in the job market daily.

The Ha Yaek Lat Phrao Area is one of three locations in Bangkok with large parks in the city center    

            The World Health Organization (WHO) recommends an average green space area per capita of 9 square meters. However, Bangkok currently averages only 6.18 square meters of green space per person. The large public green spaces in the inner urban area of Bangkok include Lumpini Park, Benjakitti Park, and Chatuchak Park, all of which are prime areas.

In contrast, the Ha Yaek Lat Phrao area, located in the Chatuchak district, boasts approximately 2,110,000 square meters of public parks, including the Railway Park, Chatuchak Park, and Queen Sirikit Park, with a population of about 150,000 people (according to the National Statistical Office). This results in a green space per capita ratio of 13.52 square meters, exceeding both the average for Bangkok and the WHO standard. Given the urban density filled with high-rise buildings, having green space in the city center is a valuable asset. Thus, being adjacent to large parks will naturally increase land value.

There are fewer than 10 condominium projects in “Ha Yaek Lat Phrao”

            If we count only the Ha Yaek Lat Phrao area, which is the MRT and BTS interchange within a 500-meter radius, there are fewer than 10 condominium projects in that vicinity. The first project to establish itself in the Ha Yaek Lat Phrao area was Equinox Phahol-Vibha, which launched in 2010 at a price of 86,000 baht per square meter. Currently, resale units are priced at 140,000-150,000 baht per square meter, indicating an increase of nearly 10% per year. Another older project in the Ha Yaek Lat Phrao area is M Ladprao, which launched in 2012 at around 87,000 baht per square meter, with current resale prices at 160,000-170,000 baht per square meter, reflecting an increase of over 15% per year. These two projects serve as case studies showing that over time, the Ha Yaek Lat Phrao area has seen property values increase by 10-15% annually.

After these two projects, the Ha Yaek Lat Phrao area remained quiet for nearly four years. With the construction of the Green Line extension from Mo Chit to Kukot starting in 2015, the condominium market in Ha Yaek Lat Phrao began to revive. Since 2016, Ha Yaek Lat Phrao has become a location with continuous condominium launches. The clearer the subway lines become, the higher the condominium prices rise. Over the past 9-10 years since the Equinox project, new condominium prices in Ha Yaek Lat Phrao have consistently increased by an average of 15% per year, with new projects in 2018-2019 priced at around 140,000-150,000 baht per square meter.

However, if we look at the timeline of each project entering this area, they tend to be primarily in the Mid to High Segment. This means that the Ha Yaek Lat Phrao market still lacks products that truly cater to the Luxury Segment (and it cannot be said that there is a lack of Mid to Low Segment due to land prices not being conducive to developing condominiums at that price point). There is a newcomer segment for those wanting to live in a prime location within a luxury project. In 2020, TerraBKK Research anticipates the arrival of one project across from Central Ladprao, next to Union Mall, which is currently surrounded by construction fencing, named “The Crest Park Residence.” The Crest brand is typically located in prime areas such as Phloen Chit, Ari, and Sukhumvit and has been the flagship brand of SC ASSET for nearly 10 years. The Crest brand has been absent from the market for almost five years, making this the first return of The Crest brand, as SC ASSET recognizes that “Ha Yaek Lat Phrao is a suitable location for reintroducing the Luxury brand.

As the Flagship Brand of SC ASSET, TerraBKK Research predicts that the The Crest Park Residence project will be priced at around 190,000 baht per square meter, which is very interesting for a luxury condominium in this promising location. Additionally, it will be the first Luxury Segment project in Ha Yaek Lat Phrao, and the arrival of The Crest will undoubtedly bring significant changes to the Ha Yaek Lat Phrao area, along with other Mega Projects that will transform the “Ha Yaek Lat Phrao area” into a prime residential location and a new business center in the heart of the city. It is rare to see condominiums near nature with views of Chatuchak Park, and for those interested in the project, the presale will officially launch on November 20-21. You can register for more information at https://m.scasset.com/6Cn.