With local media reporting the Transportation Ministry plans to open several new mass transit lines between now and 2020, Ananda Development is positioning itself to take advantage of this trend. The developer has decided to focus a majority of new condo projects near current or future public transportation lines in Bangkok.
The first of these lines, the Purple Line connecting Tao Pun to Bang Yai, opened on Saturday starting a wave of new public transportation options that will be available for residents in the congested city. Once the expansion is completed, there will be a total of 254 stations and 400 kilometers of tracks stretching across Bangkok, according to research from CBRE.
Ananda Development wants to seize this opportunity and will launch a number of projects near the new transportation lines hoping to attract buyers looking to reduce daily commuting times and avoid driving. The developer is no stranger to this plan having already launched 35 projects near the city’s current transportation links. A total of 26,000 units valued at THB1 billion has been completed or are under construction.
This plan will not be easily executed as land prices near mass transit lines have already risen significantly during the past year. The Bangkok Post noted that land prices along the Purple Line increased nearly 10 percent y-o-y despite trains not running.
“Bangkok’s central business districts will keep growing, but at a slower pace as the new mass transit lines will change the city’s landscape and boost new developments in the outskirts,” Thailand’s transport minister, Arkhom Termpittayapaisith, explained to local media. “This can help reduce the city’s congestion.”
For Ananda, the key to capturing market share will be building projects that capture potential buyers’ attention. The developer has eight brands under its watch at the moment, focusing on creating projects that offer features and spaces that appeal to the public. However, a number of other Thai developers have also seen the increase of interest in living near mass transit lines and may adopt a similar strategy.
