New Mass Transit Routes Spur Property Investments

Developers have been expanding their residential property investments around the new mass transit routes in greater Bangkok, with vigorous activity concentrated around the four train lines that are already being constructed. The four new routes, covering a total of 89 kilometres, include: the 23 kilometre Purple Line from Bang Yai to Bang Sue; the 27 kilometre Blue Line from Bang Sue to Tha Pra-Bang Kae; the 12.8 kilometre extension to the Green Line from Bearing to Samut Prakan; and the next 26 kilometres of the Red Line from Bang Sue to Rangsit. The Purple Line is expected to begin operations in 2016; the other three are scheduled to open in 2017.

 The accumulated supply of condominium projects around the Purple Line route currently comprises 3,505 units from seven projects that have already opened for bookings and sales. When combined with new projects launched by Eastern Star Real Estate, whose THB 2 billion Amber condominium will contain 563 units; and AP (Thailand), with its THB 2.78 billion, 1,232 unit Aspire Ratchada-Wong Sawang, the total supply will include over 5,300 units. Also, along the Bang Sue-Rangsit extended Red Line route, more than THB 30 billion-worth of new condominium project have been launched, comprising over 20,000 units.

 Reflecting the changing market dynamics, a survey by The Nation found that land prices around the above four mass transit routes increased by 20 to 50 percent since last year.