Purple Line extension gives massive boost to land prices on Bangkok-Nonthaburi road
May 02, 2014 00:00
By Somluck Srimalee
Land prices on the Bangkok-Nonthaburi road have tripled since 2010, on the back of construction of the extended Purple Line mass-transit rail line from Bang Sue-Bang Yai, which is set to be completed next year.
Some 10 condominium projects have been launched in this location since 2011, comprising up to 10,000 units worth more than Bt50 billion combined.
Condominium prices in the area have also increased, by an annual average of 20 per cent in the same period, a survey by The Nation found early this week.
At present, the accumulated supply of condominium projects in this location comprises 3,505 units from seven projects that have already opened for sales and where construction is under way.
When combined with new projects launched by Eastern Star Real Estate, whose Bt2-billion Amber condominium will contain 563 units, and the 1,232 units of AP (Thailand)’s Bt2.78-billion Aspire Ratchada-Wong Sawang, the total supply will be more than 5,300 units.
Other property firms having launched condominium projects on the Bangkok-Nonthaburi road include Narai Property, CMC Group, SC Asset Corp, Supalai, Ruenrudee Development, Property Perfect, and Ubonchart Group.
Popular condos in this location are available for between Bt2 million and Bt5 million per unit. The most popular type is a one-bedroom unit with usable space of 25-30 square metres.
Eastern Star Real Estate CEO Ratanachai Phatinavin, whose Amber project is the latest condominium to be launched in area, said demand was from local people, and especially those who work in the area and who have until now rented accommodation.
“When construction of the Purple Line extension from Bang Sue to Bang Yai kicked off in 2010, demand to buy land for residential development in this location started to increase – to the point that prices around the new mass-transit route have tripled [in the last four years],” he said.
At present, land prices on the Bangkok-Nonthaburi road close to the new Purple Line route average Bt300,000 per square wah (4 square metres), which is 200 per cent higher than the Bt100,000 average four years ago, he added.
The price of land has risen, with the residential projects launched in the area changing from low-rise housing such as detached homes and townhouses, to condominiums at this time.
Meanwhile, condominium sales in the area average 400 units a month, despite the state of the economy and the ongoing political turmoil. This demonstrates the strength of demand in this location.
“When the Purple Line is completed and ready to use in 2015, demand to buy condominiums in this location will be even stronger than now – and will also boost current resale prices by between 10 per cent and 20 per cent,” predicted a source engaged in condo resales.