Many of Thailand’s top developers are placing their hopes of a real estate market turnaround into the hands of the mass transits projects that will significantly expand Bangkok’s MRT and BTS lines. The belief is that buyers looking for a convenient commute will look at purchasing property at locations near the new lines.
Tritecha Tangmatitham, managing director of Supalai tells the Bangkok Post that the country’s economic outlook isn’t great this year, but the condo market should improve with the new mass transit lines leading the turnaround. Supalai owns land plots near some of the new mass transit lines and plans to launch new condo projects in these locations once the construction schedule has been finalised.
“At the time when overall sentiment is poor, almost all condo buyers are delaying their buying decision and waiting until completion of the project,” says Tritecha. “As soon as the mass transit lines start construction, they will immediately resume buying as they’ve realised that land costs will rise and condo prices will increase as well.”
Sansiri president Srettha Thavisin is another figure who believes the expansion of the mass transit lines will open up new locations and opportunities for developers. Locations in outer Bangkok in particular could be available to these companies once the new lines start operating.
“This will be a chance for the company and our joint-venture partner BTS Group Holdings to build low-rise developments, not just condos as we’ve done in the past few years,” notes Srettha.
BTS has raised its investment budget for land for the joint-venture development from THB 10 billion to THB 30 billion after it won bids for the Pink and Yellow lines late last year. The Pink Line is estimated to cost THB 53.5 billion and will go from Nonthaburi’s Khae Rai district to Bangkok’s Min Buri district. The Yellow Line will link Bangkok’s Lat Phrao district to Samut Prakan’s Samrong district.
“Attractive locations where we’re eyeing to buy new plots of land will be those located near the Pink and Yellow lines,” claims BTS chairman Keeree Kanjanapas. “Buying plots near the mass transit lines where construction plans are certain is worth the investment.”
