Magnolias Waterfront Residences at Iconsiam is one of four highly anticipated super-luxury riverside developments scheduled to enter the market this year. (MQDC Photo)
Demand for residential property overlooking Bangkok’s Chao Phraya River is rising
31 March 2019
Demand for residential property overlooking the Chao Phraya River is rising as Bangkok residents rediscover their riverside heritage.
At the end of 2018, the total completed condominium supply in the riverside area was 15,506 units, a figure that has remained unchanged since 2016. This accounted for 10% of the 148,793 completed units in the downtown area as of the end of 2018.
However, with rising interest in riverside properties, both supply and demand for riverside residences are expected to increase. CBRE estimates that 1,200 new riverside units will be completed in 2019.
Four super-luxury residential projects in the riverside area will be completed this year: Magnolias Waterfront Residences at Iconsiam, Four Seasons Private Residences Bangkok, The Residences at Mandarin Oriental Bangkok, and Banyan Tree Residences Riverside Bangkok.
The latter three are all managed by international branded hotels, which enhances the attractiveness and image of these high-quality projects. Eighty percent of the units in these projects have been sold, despite their high selling prices ranging from 300,000 to 600,000 baht per square metre.
The rediscovery of the riverside has come at the same time as the revitalisation of the Yaowarat (Chinatown) and the Charoen Krung areas as major tourist destinations, and this will help boost demand for riverside properties.
The transformation from old, crowded commercial areas to newly regenerated hip attractions is creating greater potential to renovate and convert existing buildings or shophouses into small hotels, bars, restaurants and tourist-focused retail stores, which can attract both daytime and nighttime traffic.
This transformation will be accelerated when the Blue Line extension opens this year, providing mass transit access to Chinatown for the first time. Four of the 11 new Blue Line stations — Wat Mongkorn Kamalawat, Sam Yot (locally known as Wang Burapha), Sanam Chai and Itsaraphap — will be tourist attractions with historical designs.
The Gold Line on Charoen Nakhon Road, due to open in 2021, will also open up this area, which is already a focus of attention with the completion of the Iconsiam shopping centre.
Examples of recent F&B and retail developments in these regenerated riverside locations include Lhong 1919, a newly renovated Chinese heritage museum in an old warehouse along the Chao Phraya River, which has been transformed into a place to see, to buy and to eat; the Thailand Creative & Design Center (TCDC) in the former General Post Office; and Warehouse 30, a collection of old World War II-era warehouses converted into designer boutiques, restaurants and coffee shops.
Lifestyle changes, outgoing activity preferences, and the search for unique experiences will support the emerging value of riverside developments in the future.
A river view provides a point of difference and a unique selling point for developers as there are only a few locations in Bangkok with unique views such as those overlooking Lumpini Park or the Tobacco Monopoly Lake at Benjakiti Park.
The completion of four luxury riverside properties this year has put the Bangkok riverside firmly back on the map as a desirable residential neighbourhood.
The transformation of riverside locations from obsolete warehouse, dock and factory locations into prime residential districts has been happening in many cities around the world, and Bangkok is just the latest to enter the area of riverside revival.
London was one of the first cities to undergo urban regeneration of its riverside with the completion of Canary Wharf more than 30 years ago; and, more recently, the comprehensive redevelopment of the Nine Elms area. CBRE believes that Bangkok will follow in the footsteps of London in the rediscovery of its riverside as a prime residential location.
Aliwassa Pathnadabutr is the Managing Director of CBRE Thailand. She can be reached at bangkok@cbre.co.th; Facebook: CBRE.Thailand; Twitter: @CBREThailand; LinkedIn: CBRE Thailand; Website: www.cbre.co.th
Source: https://property.bangkokpost.com/news/1653792/the-return-of-the-riverside
