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Mass-transit routes, expressway account for top 10 locations for new projects this year

The top 10 locations for the development of new residential projects in Greater Bangkok over the next 12 months are all situated close to existing or planned mass-transit rail routes and the expressway, according to the Government Housing Bank's Real Estate Information Centre.

The REIC's research shows the top five locations for developing low-rise homes such as detached housing and townhouses are Bang Na-Phra Khanong-Soulong, Klong Long-Lum Luk Ka, Bang Yai, Phetkasem and Rama II. This is because they are close to either the expressway or motorways, which make it convenient to travel to and from the capital's central business districts (CBDs).

Meanwhile, the most popular locations for the development of condominium projects this year are situated close to the first planned route of the Purple Line from Bang Sue to Bang Yai, the next Purple Line route - Thon Buri-Bang Wa-Phetkasem-Bang Kaethat - and the Red Line from Bang Sue to Rangsit, plus the existing Phaya Thai-Ratchathewi route and the central part of Sukhumvit Road, which has the BTS Skytrain running above it.

REIC director-general Samma Kitsin said that with a combination of the limited amount of land available in the CBDs and the newest part of the mass-transit network scheduled for completion in 2015 continuing to boost residential demand outside the CBDs, those locations close to the new mass-transit line would be the most popular.

"Residential prices in locations far from the CBDs but near the new rail route will still be lower than for both new residential launches and second-hand homes located in a CBD. This is attractive for home-buyers who have limited income and cannot spend more than Bt3 million on a property," he said.

Plans for 235 new projects

A survey by The Nation found that the top listed developers planned to launch 235 projects worth more than Bt272 billion combined in Bangkok and the provinces this year, covering the spectrum of condominiums, detached housing, townhouses and twin-houses.

Pruksa Real Estate has the biggest plans, intending to launch 50 projects worth Bt50 billion, which is almost the same level as in 2013.

Sansiri is the next most ambitious player, with plans for 40 new projects worth about Bt40 billion. This is lower than last year's level, as the company has changed its business strategy and will now get an environmental-impact-assessment permit before introducing each new project.

Land and Houses and Supalai, meanwhile, each plan to launch 24 projects - nearly the same number as last year - while other listed developers have plans for about another 100 projects between them.

Besides the development of residential projects in the top 10 locations in Greater Bangkok, the leading developers are also expanding in major provinces around the country. These include Chiang Mai, Chiang Rai, Khon Kaen, Nakhon Ratchasima, Phuket, Udon Thani and Surat Thani, plus Hat Yai in Songkhla province, Cha-am in Phetchaburi province, Hua Hin in Prachuap Khiri Khan province, and Pattaya and Sri Racha in Chon Buri province.

"We believe the ongoing political turmoil will be a short-term issue in relation to the demand in the market, which is still growing both in Bangkok and the provinces. As a result, we plan to launch 50 new residential projects in Bangkok and upcountry," said Pruksa Real Estate chief operating officer Lersuk Chuladesa.

Outside of Greater Bangkok, the company will expand beyond the four provinces in which it is currently active - Phuket, Khon Kaen, Chon Buri (Pattaya) and Chiang Mai - during the course of the year.

The new provincial focus will be in the Northeast and tourist destinations, he said.

Supalai president Prateep Tangmatitham said the company would spend Bt5 billion on acquiring land for the development of 24 projects this year, while Bt1 billion would be for expanding overseas investment, especially in land for the development of a residential project in Melbourne, Australia.

Eight of the 24 projects to be launched by Supalai this year will be condos, and the remainder will be detached-housing and townhouse projects.

At least seven projects will be in the provinces, including one each in Ubon Ratchathani and Nakhon Ratchasima, he said.


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