The expansion of Bangkok’s mass transit system, with over 10 new train lines under development, is rapidly pushing the city boundaries outward. This expansion is also driving up land prices, despite the ongoing COVID-19 situation. According to a survey by the Real Estate Information Center (REIC), raw land prices in Bangkok rose sharply in Q3 of this year—up to 30%—particularly in areas along new or planned train routes. For example, prices along the Pink Line (Khae Rai–Min Buri) increased by 35.7%, while the Northern Green Line (Mo Chit–Khu Khot) rose by 34.23%. Both lines are expected to open soon.
New train lines have sparked a surge in land prices. Even though the Blue Line extension from Bang Khae to Phutthamonthon Sai 4 and the Red Line extension from Taling Chan to Salaya (in Nakhon Pathom province) have not yet begun construction, the government has clear investment plans. This has encouraged developers to purchase land for future projects. More people are also showing interest in living in low-rise homes in suburban areas, compared to condominiums, which has driven suburban land prices up by nearly 30%. In contrast, land prices along existing train lines in central Bangkok have only increased by 2–3% due to already high prices and limited supply. The market in these areas is quite still.
Land near new train lines offers excellent opportunities for both homebuyers and developers. In Bang Khae, the end of the Blue Line extension, Wason Khongchantr, Managing Director of Modern Property Consultants Co., Ltd., stated that land prices have risen to 300,000 baht per square wah, largely because the MRT line is already operating and The Mall Group has a shopping center there. Prices along the way toward Phutthamonthon Sai 4 now reach 150,000 baht per square wah. In the Phutthamonthon area (Sai 1–Sai 4), land prices range from 100,000 to 130,000 baht per square wah due to dense residential development. Likewise, land in Taling Chan, along the beginning of Ratchaphruek Road, is priced at 200,000 baht per square wah, while land in Salaya is still affordable at 20,000–30,000 baht per square wah. However, there is much land waiting to be developed. Once the train passes through, prices are expected to double. The area is expected to attract significant residential development, especially condominiums, because of Salaya’s status as a university town and the opening of a Central shopping mall to serve incoming shoppers before entering Bangkok.
The Mall Group Claims Min Buri Station
The eastern zone of Bangkok is also heating up due to the Orange Line, which is now over 71% complete. The updated Bangkok Comprehensive City Plan (Version 4) has made development easier, further increasing land values. Many developers are purchasing land in anticipation of future projects. A source from the Bangkok Metropolitan Administration told Thansettakij that suburban land prices have risen significantly due to new zoning that favors commercial development.
Ramintra Land in High Demand
Land along Ramintra Road has become popular thanks to the Pink Line. Prices have jumped from 300,000–400,000 baht per square wah. Major developers like Pruksa and L.P.N. have plans to build condominiums in this area, which has strong potential for both low-rise and high-rise developments. Pruksa purchased land here two years ago, and its value has now risen to 400,000 baht per square wah. Land in other areas such as Phatthanakan Road and Srinakarin Road is also rising in value, currently ranging from 400,000 to 500,000 baht per square wah, with more projects planned by developers like Pruksa.
Khu Khot: The Rising Star of the Northern Green Line
Khu Khot, located along the Northern Green Line, has also become an area of interest. Land prices there have increased from 50,000 to 200,000 baht per square wah, after being connected by the MRT. The area is rapidly developing and expanding toward Don Mueang. Most of the growth is in low-rise housing estates. Developers like Pruksa, Supalai, and N.C. Housing have already applied for development permits. Future development will depend on the Pathum Thani zoning plan, which may be more flexible than Bangkok’s.
Date: December 1, 2020
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