The postponed opening of the Orange Line, which will connect the Thailand Cultural Centre and Min Buri, has impacted the development and launch of retail and commercial properties; however, demand for condominiums along Ramkhamhaeng Road remains robust.
Wutthiphon Taworntawat, managing director of commercial property developer UHG, noted that the delay has affected the launch plans for their mixed-use project, Ramkhamhaeng Hills.
“The project is set to complete construction in November, but we will only be opening the office space of 12,000 square meters and the retail area of 1,200 square meters at that time,” he explained.
The 338-room hotel portion of the project plans to open 100 rooms in December, with the remaining rooms rescheduled for the first quarter of 2025.
“Since we currently lack a mass transit line to attract independent travelers, we have decided to reduce room rates by 20%, lowering the price from 2,000 baht per night to 1,600 baht to attract more guests,” he added.
UHG will also decrease office rental rates from 750 baht per square meter per month to 550 baht to entice tenants.
With an investment of 3.5 billion baht, Ramkhamhaeng Hills is situated on an eight-rai plot leased for 30 years, located near Ramkhamhaeng 12 Station on the Orange Line, which may commence operations by 2028.
“The break-even point will now be postponed by two years, shifting from the original timeframe of six to eight years,” said Mr. Wutthiphon.
Phattarachai Taweewong, director of the research department at property consultant Colliers Thailand, mentioned that the delay of the Orange Line prompted shopping mall operator The Mall Group to choose demolition and new construction over renovation.
“Commercial properties must await the mass transit line,” he stated. “Nonetheless, despite the delay, demand for condos along Ramkhamhaeng Road remains strong, as supply has been limited even before the line’s construction began.”
Currently, approximately 36,500 condo units have been launched along Ramkhamhaeng Road, with an average sales rate exceeding 90%.
“Sales have been particularly strong for projects near Ramkhamhaeng University due to a limited supply of condos available for sale and high demand for rental units in the area,” he noted.
Selling prices have almost doubled over the past decade, rising from 60,000 baht to 110,000 baht per square meter for units close to the university, while units further away have increased from 50,000 baht to 90,000 baht, he added.
Surachet Kongcheep, managing director of property consultant Property DNA, stated that the Orange Line has been one of the most confusing and frequently changing mass transit projects in Greater Bangkok.
“With most infrastructure nearing completion, investors and developers have begun to invest in or acquire land along this route,” he noted.
For those planning commercial projects, a clear understanding of purchasing power is essential before development can commence.
