When mentioning “Ramkhamhaeng”, many people might picture a residential area densely populated with students from Ramkhamhaeng University. However, it is evident that over the past 3-4 years, this location has been continuously growing as an extension of the business district and urban expansion in Eastern Bangkok. The arrival of two under-construction subway lines and one planned line in the future has led to significant residential and commercial developments in the area. The potential for transportation and numerous amenities in Ramkhamhaeng reinforces its capability to become a major hub in Eastern Bangkok.

The New City Plan Indicating Growth Potential for Ramkhamhaeng

Looking at the potential of the area based on land use intensity, the “Ramkhamhaeng Zone” is recognized as a location with high land utilization. According to the Bangkok Master Plan 2013, the Ramkhamhaeng area around the Lamsali Intersection and nearby Ramkhamhaeng University is classified as a red zone, indicating a commercial area with dense trading activities and vibrant community life. Other parts of Ramkhamhaeng are designated as orange zones, indicating medium-density residential areas, which are intended to accommodate population growth from significant economic zones like Sukhumvit, Asoke, and Rama 9.

Recently, the 4th Revised Bangkok Master Plan was set to be announced in 2020 but was postponed due to the COVID-19 situation. The new city plan is expected to be enforced once the pandemic subsides. A key aspect of this new plan is the adjustment of land use in Eastern Bangkok, including areas like Ladprao, Wang Thonglang, and Khan Na Yao, changing from yellow (low-density residential) to orange (medium-density residential) and increasing the Floor Area Ratio (FAR) from 3 to 3.5, allowing for greater land utilization.

The upcoming changes in the city plan will lead to various developments in Ramkhamhaeng, particularly in the area from Rama 9-Ramkhamhaeng-Lamsali Intersection, including three subway lines, mixed-use projects from The Mall Group, and numerous residential projects. This illustrates the growth trend in the eastern area and reinforces Ramkhamhaeng's potential as a major hub in Eastern Bangkok.

Diverse Transportation Potential for Convenient City Connectivity

Ramkhamhaeng is another location with diverse transportation options that facilitate easy access in and out of the city and to key areas in Bangkok. The main road, “Ramkhamhaeng Road,” connects with other major roads, linking to Rama 9 and Phetchaburi roads, providing access to important business districts like Sukhumvit, Asoke, and Rama 9, as well as lifestyle hubs like Thonglor and Ekkamai. Additionally, it connects with Ladprao Road, Srinakarin Road, Pattanakarn Road, and Bangkok-Krit Road for access to other locations. The Si Rat Expressway also allows for travel to the CBD areas of Silom and Sathorn or connects to the motorway for out-of-town travel. Furthermore, traveling by boat on the Saen Saeb Canal offers an alternative route that saves time and avoids traffic congestion when commuting to other city areas.

The introduction of the subway has further strengthened the transportation potential of this area. The Orange Line, running from Bang Khun Non to Min Buri, connects Eastern and Western Bangkok and is currently under construction, with over 81% completion expected to open in 2024. The Bang Khun Non-Cultural Center section is still in the process of drafting the Terms of Reference (TOR) and is anticipated to open in 2026. Additionally, the Yellow Line, connecting Ladprao to Samrong, is over 78% complete and is set to open in 2022.

In the future, the Brown Line (from Khae Rai to Lamsali) will enhance the transportation capabilities of this area, currently undergoing an Environmental Impact Assessment (EIA). Once all three subway lines are completed, they will significantly improve connectivity between different zones of Bangkok.

Another Residential Destination Surrounded by Amenities

With the character of the Ramkhamhaeng area being a densely populated residential hub with several educational institutions, this area is filled with numerous amenities. These include shopping centers, department stores, and lifestyle malls such as The Mall Ramkhamhaeng, Big C Huamark, Foodland Hua Mak, Makro, Homepro, and The Nine Center. Additionally, there are large lifestyle markets like the KKT Market, offering a wide variety of food and goods. The area is also rich in restaurants and general stores, catering well to the lifestyle needs of students and residents.

This area is home to various educational institutions, including Ramkhamhaeng University, ABAC, Rattanakosin University, International School Trell, Bodindecha (Sing Singhaseni) School, and many other educational establishments. It also provides a sense of security with leading hospitals in the area, including Samitivej Srinakarin Hospital, Ramkhamhaeng Hospital, Panya Hospital, and Vibhavadi Hospital.

In addition to basic facilities, this area also hosts several workplaces, such as the Sports Authority of Thailand, educational institution staff, Osotspa Public Company, Thai Namthip Company, Amway (Head Office), and TOYOTA SPI, along with various medium and small enterprises. There are also office buildings in this area with a total area of over 120,000 square meters, including mixed-use projects like Major Tower Rama 9 - Ramkhamhaeng, which provides office space for job opportunities. In the future, there will be a Mega Project from The Mall Group, transforming The Mall Ramkhamhaeng 2 into a Mixed-Use Complex over an area of more than 200,000 square meters, valued at over 10 billion baht. This project will undoubtedly create job opportunities and attract more people to the area.

In addition to residential living, is Ramkhamhaeng a suitable area for rental investment?

It is important to note that Ramkhamhaeng is a location with various job sources in the area, which comes with significant demand as well. According to data from TerraResearch, the large demand in this area comes from approximately 133,094 students at Ramkhamhaeng University, with around 30,000 new students entering each year, along with 3,349 staff members. There is also potential demand from hospital staff in the area, estimated at about 870 people. Furthermore, with approximately 120,000 square meters of office space in the zone, it is estimated that there are around 10,800 office workers (calculated based on 1 person per 10 square meters at a 90% rental rate). This does not include many other job sources in the area without publicly available data.

The substantial demand in Ramkhamhaeng reflects the need for both short-term and long-term housing. This positively impacts the dormitory and apartment rental market and also benefits investment in the condominium market, which is another housing option for people today.

Condominium Situation in Ramkhamhaeng

Looking back at the condominium market situation over the past 10 years, it is evident that new project launches in this area have not been frequent, averaging only 2-3 projects per year. However, after the construction of the Orange Line subway began in 2017, five condominium projects were developed, adding 4,060 units to the supply. From 2018 to 2020, supply continued to emerge in this area due to the construction of both the Orange and Yellow Lines, which started in 2019. The continuous influx of supply reflects that real estate developers also recognize the potential for land development in Ramkhamhaeng.

The growth of presale prices in this area has been steady but not dramatic. From 2011 to 2015, before the subway construction, the average launch price per square meter was around 54,000-59,000 baht. When news of the subway construction emerged, prices jumped to 87,000 baht per square meter, and subsequently stabilized at around 85,000-87,000 baht per square meter.

Although the supply of condominiums continues to increase, it has been absorbed fairly well. Currently, projects still on sale in this area have an average sales rate of over 70%, indicating that condominiums in this area remain in demand among residents. With the high demand from local job sources and the university, even with increasing supply, this area still holds investment potential.

Investment Opportunities in Ramkhamhaeng Condominiums

Condominiums in the Ramkhamhaeng area can yield an average Cap Gain of 4-6.5% per year. Second-hand units are priced at an average of about 77,000-113,000 baht per square meter, while the rental market has an average rental rate of 320-450 baht/sq.m./month, generating a Rental Yield of 5-6% per year, with average monthly rents ranging from 7,000-14,000 baht.

Given the potential of this area as a major hub with ample amenities to support living, along with relatively high returns from both sales and rentals, even with continuous supply, the demand in the area remains strong. If you are looking for a condominium for investment, this location is indeed interesting. As the subway approaches its opening day, the trend for new condominium prices is likely to rise, making it challenging to find new projects priced below current market rates.