Demand for condominium units near new mass transit lines may not be as high as developers predict, according to insight from CBRE Head of Research James Pitchon that was shared with local media. The number of passengers on each line will dictate the level of real demand for each location and this trend looks set to continue.
He noted that potential condo buyers are going to become more selective in choosing a residence near mass transit locations since not all of Bangkok’s public transportation lines are equal. In particular, some buyers will factor in the trade-off between the price of a unit and the time and travel cost of commuting to and from work.
According to Pitchon, this means if the newly opened Purple Line is truly able to provide a convenient journey to downtown Bangkok that is faster and cheaper than taking alternative forms of transport, condos along it could see a bump in demand.
He told the Bangkok Post that there are estimated to be 31,000 condo units located within 800 meters of the stations completed along the Purple Line. In addition to this, roughly 24,000 condo units are under construction as of the second quarter of this year.
The BTS Light Green and Dark Green Lines have been by far and away the most popular lines with nearly 740,000 passengers per day. This is more than double the 310,00 passengers that use the MRT Dark Blue Line on a daily basis. The Airport Rail Link carries only 60,000 passengers per day.
While demand has been high in some locations, in other areas it has failed to materialize. According to Pitchon, this means developers and purchasers will be examining the potential new MRT lines schedule to start operating in the next few years more carefully before making a decision.
