New Rail Routes Boost Condo Development in Bangkok
Prachanukul junction-Prachachun Road area sees Bt40 billion worth of residential projects as demand follows Red and Purple Line plans in Bangkok.
The area from Prachanukul junction through to Prachachun Road in Bangkok is witnessing a rush of condominium launches – comprising more than 10,000 units worth over Bt40 billion in total – with the projects largely following the paths of two new mass-transit rail routes.
Construction of the Red Line from Bang Sue to Taling Chan is scheduled for completion in 2016, while the Purple Line from Bang-Sue to Bang Yai is scheduled to be ready in 2020.
According to a survey in this week, new condominiums in the area are being offered for between Bt1.3 million and Bt5 million per unit, with some fetching even more. Most of them are high-rise projects.
For example, Supalai has introduced its latest condominium project, the Bt4.3-billion Supalai Veranda Prachachun, which comprises 1,705 condo units and 26 commercial units.
Property Perfect has launched the Bt4.2-billion Metro Sky Prachachun, which comprises 1,356 units at a starting price of Bt1.9 million apiece – an average of Bt67,800 per square metre.
Grand Unity Development, meanwhile, has introduced four condominium projects on Prachachun Road worth more than Bt3.3 billion combined.
Two of the four were in fact launched in 2011, and the other two this year. Together they have more than 1,000 units.
Then there is Sena Development, which has launched The Niche Mono Ratchavibha, located close to Prachanukul junction. The Bt2-billion project offers 840 units at a starting price of Bt1.9 million apiece, or about Bt63,300 per square metre.
“We have introduced our latest condominium on Prachachun Road after seeing strong demand in this location, where land prices are still lower than in the central business districts [CBDs]. But this location also will have two new rail systems, the Purple and Red lines, in the future. There is a challenge for home-buyers wishing to purchase a property in this location,” said Supalai managing director Atip Bichanond.
A survey by the developer found the supply of residential projects in the Prachanukul junction-Prachachun Road area comprised up to 10,000 units, some 70% of which have already been sold, he said, adding that this was largely local demand from people working close to the location.
“Prachachun is a residential area that has an older community that requires homes when their families expand and want to stay to close to their loved ones. As a result, when property firms launch residential projects in this location, they succeed in selling out,” said the MD.
According to the Real Estate Information Centre of the Government Housing Bank, new residential projects launched around the Purple Line route from Bang Sue to Bang Yai comprise more than 6,600 condominiums, detached houses and town-houses.
Some 83% of the total have already been sold, while the demand is focused on homes costing up to Bt5 million.
Demand in the area is real rather than for investment or speculative purposes, because of the proximity to major workplaces such as the Commerce Ministry and Siam Cement Group, said the centre.