Projects Move beyond inner CBD

Many property companies are expanding their new residential projects outside the inner Central Business District (CBD), following the new route of the railway system, especially around Sathorn-Taksin road, Sukhumvit soi 103 up to 107 and Chaeng Wattana-Rattanathibet road.

According to a survey by The Nation, developers are interested in expanding new projects, especially condominiums, to outside the CBD. This follows the new mass-transit route, for which bids will open in the second half of this year.

Land prices in the inner CBD have reached a record high of between Bt300,000 per square wah and Bt500,000 per square wah. But the growth in demand for middle-market properties is stronger than luxury-condominium projects.

Sansiri president Sretha Thavisin said demand for residential projects such as city condominiums expanded from the inner CBD of Bangkok to the middle CBD, when projects in the CBD touched Bt100,000 per square metre, making them unaffordable to many.

He said land prices at CBD locations such as Sukhumvit, from soi 1 up to soi 77, Rajdamri Road and Pathumwan are higher and, therefore, the company had to expand its residential projects outside the CBD.

Meanwhile, home-buyers believe the government will begin construction on the new route of the mass-transit system next year. This will help them buy homes at prices lower than those in the CBD and they will also benefit from the new route.

Keeping with market trends, Sansiri launched two residential projects in middle CBD, worth Bt1.9 billion. They are Hive Taksin, worth Bt1.5 billion, and Hive Sukhumvit 65.

LPN Development managing director Opas Sripayak said the company plans to launch four new condominium projects at Rama IIX, Rama II, Rangsit and Paknam districts in Samut Prakan province.

Though the projects will be located far from the CBD, the new mass-transit system will expand to that location and demand for residential projects in the area has strong growth potential, he said.

Plus Property said the number of condominiums built in Thonburi district was 6,857 units last year, up 200 per cent from 2006. This followed the building of two new Skytrain stations that will start service this year. The company estimates nine projects will be launched at Thonburi district in the first half of this year.

Plus Property said on Sukhumvit road - from Asoke intersection to soi 107 - 3,151 units were launched last year and this year, 3,100 units are expected to come up. Up to 91 per cent of the units built last year were sold.

Apart from condominium projects, luxury detached-housing projects have been launched outside the CBD, close to the new mass-transit route. Quality Houses has introduced Laddarom at Chaipruak Chang-

watana Road, worth Bt2 billion.

SC Asset Corporation has also introduced a luxury detached-housing project, Bangkok Boulevard on  Ratchada Ramindra Road, worth Bt600 million.