Booming land prices seen following progress of MRT system
Land prices in the Rattanathibet, Wongwian Yai, Bang Khae and Phetkasem areas will increase significantly when construction begins on the expansion of Greater Bangkok's mass-transit system and creates a demand to develop residential projects.According to a survey by The Nation, when the process to extend the MRT route from Bang Sue to Bang Yai, Hua Lamphong to Bang Kae, and Bang Sue to Tha Phra began last year, the demand to buy land for developing residential projects in the location began to rise. It also boosted land prices around the MRT system, especially on Rattanathibet Road, around Wongwian Yai, in Bang Khae and on Phetkasem.
LPN Development managing director Opas Sripayak said the company bought land to develop condominium projects on Rattanathibet Road four years ago at Bt80,000 per square wah (Bt20,000 per square metre). Now land prices near the same locations have increased to between Bt120,000 and Bt200,000 per square wah. This follows the extended route from Bang Sue to Bang Yai, which will be completed in 2014.
Land prices at Wongwian Yai, Bang Khae and Phetkasem will also increase after construction begins on the new mass transit route.
The Agency for Real Estate Affairs said land prices along the Blue Line extension of the MRT, now under construction from Hua Lamphong to Bang Khae, had increased 14 per cent, and by 11.5 per cent along the Purple Line from Bang Sue to Bang Yai.
SC Asset Corporation chief operating officer Kree Dejchai said land prices around extension routes were already rising, especially in Bang Khae and on Phetkasem Road. Land prices on Phetkasem have increased by up to 100 per cent compared with five years ago - from an average of Bt50,000 per square wah to Bt100,000-Bt150,000.
"When mass transit extends to outer Bangkok, the challenge will be for property firms to expand their investment to develop residential projects in outer Bangkok locations. It will also boost demand for low-rise residences and both detached houses and townhouses," he said.