Mr. Phanom Kanjanathiemthao, Managing Director, Knight Frank Thailand, said that the Chaeng Wattana area has outstanding potential as a business and commercial district. There are a variety of mixed real estate projects that are under planning and development by many large developers; some of these projects have started to occupy land in the area.
Currently, the Chaeng Wattana area is in located within the Pink Line rail development project of Khae Rai – Min Buri. The route runs along the entire Chaeng Wattana Road (at present it is under construction and will be open for service around 2021). There is also a rail extension from the Si Rat – Muang Thong Thani Station, which is designed as a straddle monorail system. The connection point is at the Si Rat Station of the Pink Line train project of Khae Rai – Min Buri. The main line runs to the west and turns right into Muang Thong Thani along Soi Chaeng Watthana – Pak Kret 39 — the same direction as the Udon Ratthaya Expressway – and continues to the end of the project at Muang Thong Thani Lake.
It consists of two passenger terminal stations, namely, MT-01 Station, located at Impact Challenger; and MT-02 Station, situated in front of Muang Thong Thani Lake. The total distance covered is about three kilometres. When the project is completed, it will increase efficiency for people traveling from the Chaeng Watthana Road area to the Muang Thong Thani area, which is a dense residential area as well as home to various organisations and venues such as Impact Exhibition and Convention Centre, Muang Thong Thani; SCG Stadium; Thunder Dome; and Sukhothai Thammathirat Open University. The Pink Line rail project will also connect to three other lines, including:
- Purple Line from Tao Poon – Khlong Bang Phai (currently open for service) connecting with the Pink Line at Nonthaburi Government Centre Station.
- Dark Red Line from Bang Sue – Rangsit (currently under construction and will be open around 2021) connecting with the Pink Line at Laksi Station.
- Dark Green Line (Mo Chit – Saphan Mai – Khu Khot) connecting with the Pink Line at Wat Phra Si Mahathat Station (future project).
The above infrastructure will boost the convenience of travel, communications and facilities, which will be quite comprehensive for people working and living in the area. Chaeng Wattana is located near Don Mueang Airport. At present, Don Mueang Airport has two buildings, Terminal 1 and Terminal 2, which can accommodate about 30 million passengers per year. Airports of Thailand Public Company Limited has prepared a future development plan for Phase 3 (Terminal 3). In the future, it is expected that there will be more flights and the number of passengers using the service will increase to 40 million people each year, with up to 50 to 60 million people (in the years 2025-2030).
In terms of water transport, this area also includes Pak Kret Pier, which supports travel to various parts of Bangkok. There is also an infrastructure system that is accessible by the development of the government’s mass transit system.
The Chaeng Wattana area was originally a residential area that grew out of downtown Bangkok. In the beginning, there were only a few housing estate projects. Subsequently, the expansion of housing projects increased. Thanks to the 2nd stage of the expressway system, this area is now considered to be one of the most important residential and business districts in Nonthaburi.
Development in the Chaeng Wattana area began in 1999, with the development of one of the largest and most modern exhibition and convention centres in the region. Boasting a total area of more than 140,000 square metres, the mixed commercial development led to the development of residential projects, including various low-rise residential projects such as detached houses and townhouses. The Chaeng Wattana area became increasingly more densely settled. Later, this area experienced the development of retail businesses to support the needs of its residents and the people working in the area; this included large shopping centres such as Central Chaengwattana, Big C, Makro, community malls and other projects.
According to Knight Frank Thailand Research, the condominium supply in Chaeng Wattana in the middle of 2019 totalled 18,942 units. The supply of condominiums in this area has seen a surge since 2011 due to the government agencies moving their offices into the Government Centre of Chaeng Wattana. This led to the purchase of land by developers to build and sell condominiums in 2011; however, condominium development in the following years saw the new supply alternate between slowing down and increasing until 2018. In 2018, the beginning of the construction of the Pink Line rail project from Min Buri – Khae Rai resulted in 2,013 new units, and in the first half of 2019, there were 1,838 new units of supply for sale. It is expected that, in 2019, there will be around 3,000 new condominiums for sale in this area.
Supply of Condominium in Chanegwattana Area, 2011 – Mid 2019
As of the middle of 2019, there have been approximately 12,271 condominium units sold out of a total of 18,942 units, representing a sales rate of 64.8 per cent, with about 6,671 units left for sale. There has been an average of 1,350 condominium units sold per year in the past six years, given the area’s potential as a new business area surrounded by amenities like retail facilities, office buildings, government agencies, hospitals and educational institutions, including a range of schools and universities. In addition, the development of the electric train system in the area, which is expected to be completed in 2021, has resulted in more groups of people interested in buying condominiums in the area. Condominium buyers in this area include employees in the various agencies and companies as well as parents and students studying in the area’s educational institutions. Condominiums in Chaeng Wattana area still have reasonable prices. Once the Pink Line has been completed, traveling to various locations will be more convenient.
Therefore, the selling prices are likely to increase. In addition, condominium buyers in this area tend to buy the units for their own residential purposes while some buy for rental income or as investment assets. It is expected that price levels of condominiums in the Chaeng Wattana area will rise in the future, especially when the electric train system under construction is completed.
Supply Demand and Sold Rate of Condominium in Chaengwattana, 2011 – Mid 2019
Condominium development in the Chaeng Watthana area mostly encompasses condominiums in the Grade C segment. The average selling price of Grade C condominiums in the middle of 2019 is 72,438 baht / square metre. The price has increased from 2011, which had an average price of 53,680 baht / square metre. On average, in the 7-year period from 2011 to mid 2019, condominiums in this area have a Compound Annual Growth Rate (CAGR) of 5 per cent. In 2019, there has been development of B Grade condominiums in Chaeng Wattana, and the average selling price of such Grade B condominiums has been 80,150 baht / square metre in mid 2019.
Average Selling Price of Condominium in Chaengwattana, 2011 – Mid 2019