How the NEW Sky Train will impact property purchases in Bangkok?
It is well known that construction of Sky Train always has an impact on the real estate markets of the city. How can buyers or investors, can use this to their advantage?
New Train or adding new liens of the sky train has changed the real estate scenario of many cities around the world, Bangkok metropolitan will be the classic example. Real Estate in proximity to Sky Train has become a major selling point for developers and Real Estate Agents. It is true that owning a Condo near a Sky Train station has its benefits in terms of valuation of the property and the future appreciation. However, at what time of the construction of the Sky Train should you make your purchase to maximize this potential?
How much and in what point of time will the new Bangkok Sky Train line impact the property market and which location would benefit most? What will be the appreciation rate in the next few years and what can we expect in the near future.
Every Property Buyer or Property Investor should ask these questions before making a perchance.
Impact of Sky Train on property prices may be divided in to three price stages.
Announcing the Sky Train - there is generally a short pick in the capital values for that Location that would fall on the Sky Train line route. The concern is only if or when construction will start. In this time many investors won’t take the risk and they just sit and wit or construction to begin.
Starting the Sky Train Constriction - While prices are rising after the Sky Train is announced, once the construction starts it is generally noted that sales drops as well as rental values take a hit due to the traffic, noise and inconveniences caused because of the construction work. In this period price continue to rise as speculators having less risk of change of plans.
Many property owners will prefer to wait until construction will be completed as they will be able to maximize their profits.
Sky train operational - Prices will rise again as construction nears completion or when the Sky Train becomes operational.
The price affects are directly along the Sky Train lines but price rise is also felt in the vicinity of the Sky train lines stations. This largely happens in situations where Sky Train stations are located at or near commercial centre and shopping malls while residential condo that are in the vicinity appreciate due to increased connectivity to a commercial centre and shopping malls.
How will Bangkok New Train line impact the real estate market?
With growing number of cars on the roads Bangkok struggling to provide new solutions to the long-time traffic and air pollutions (PM2.5) . We look at how the multiple Sky Train lines planned for the city, will help the balance the city traffic, Manage the Air Pollution (PM2.5) and the impact it will have on the real estate condo market.
New Train infrastructure in cities across the globe, has a proven positive impact on real estate growth along the peripheral markets of the cities. There is optimism hence, that the development of the Sky Train in Bangkok, will boost the real estate condo market.
Constriction has begun and hopefully, the Bangkok Sky Train lines, will be operational in the new few years. Any planned infrastructure results in massive real estate growth, in and around the new Train lines.
Transporting many people daily to work and from work between all parts of the city, Residential and Commercial properties located close to the upcoming Sky Train lines, will gain more foot traffic of costumers.
Developers interest in projects near the Sky Train Lines, has been increasing and there is an upward pressure on prices. The markets that are likely to benefit are CBD (central business district), SBD (secondary business district) .
After the Sky train was announced Developers begun the race to get the prime location land on or near the New Sky Train Line, this Developers race is so tiding that today Developers are willing to pay to Property Owners the price value that will be 5 years from now.
Thailand top Developers:
Pruksa Real Estate
Founded by Thongma Vijitpongpun in 1993, Pruksa Real Estate Public Company Limited is among the largest property developers
The Tree (Condominium)
The Gallery’s (Single detached home)
Nexts Pruksa Town (Townhouse)
Passorn (Single detached home)
Pruksa ranked among the top 5 most trusted developers in Thailand
Brand trust rating of 81%.
Magnolia Quality Development Corporation (MQDC)
MQDC is an international developer that has completed many housing and condominium projects in Thailand over the years.
a. The Residences at Mandarin Oriental
b. Magnolias Waterfront Residences
c. Whizdom Avenue Ratchada
d. Whizdom Station Ratchada
MQDC is known for building upscale residential projects, mostly directed towards very wealthy buyers in Thailand and other foreign investors, based in Asia.
Most of their projects are condominiums with some housing/villa projects like Magnolias Southern California.
a. Magnolias Ratchadamri Boulevard, close to the BTS Line, Prime Sukhumvit
b. Magnolias French Country at Khao Yai
c. Magnolias Southern California at Bangna
d. Whizdom Essence Sukhumvit, close to the BTS station Punnawithi
Notice that MQDC develop their projects under two brand names, Magnolias and Whizdom.
Sansiri is one of the most famous and largest property developers in Thailand.
The company was the second largest developer in 2016, after Pruksa.
Founded in 1984 as a small asset management company, Sansiri was later transformed into a real estate developer. Many of their projects are near new BTS/MRT Stations
The Line (Phra Kanong)
The Base (On nut)
Siri Place Tiwanon
Town Avenue Song-Kwae
Land and Houses
Land and Houses is another large real estate developer in Thailand.
L&H is the second fastest growing developer in the country.
It’s also one of the most trusted developer in the single detached house category.
Villaggi in Rangsit
Land Mark in Ramindra
The Bangkok in Thonglor and Sathorn
The Everland Public Limited Company
In addition to their high-quality residential projects, they are also known for their tourist resorts that they manage on their own.
Everland PCL projects
The Politan Aqua
The Politan Breeze
The Politan Rive
My Resort in Bangkok, Hua Hin, and River
Ananda Development PCL
Founded in 1999, the Ananda Development Public Limited Company is another big property developer in Thailand.
It was also ranked among the two best developers for new condos.
Many of their project are near new BTS/MRT Stations
IDEO MOBI Series
Atoll Series (houses)
Arden Series (townhouses)
Even if it’s mostly known for building quality condominiums, you can also find single houses and townhouse projects.
IDEO Mobi Asoke, Ashton Chula, Ashton Residence Sukhumvit 41,
Been ranked as one of the best condo developers in Thailand.
Founded in 1989, it’s in charge of multiple regional subsidiaries like Phuket Estate Company Limited.
In addition to building residential projects, Supalai are also known for their resorts, like Supalai Pasak Resort Hotel and Supalai Resort & Spa Hotel.
Supalai Park Ville
Supalai Royal River
Should home seekers invest in real estate near Bangkok Sky Train projects?
Recent to Completion of the Property, rates again pick up. The population density of residential areas near a Sky Train will increase, after it becomes operational, as people prefer proximity to transport modes, along with the increase in demand for offices and retail spaces. The impact of the Sky Train is also felt in nearby locations. The impact on the new BTS and new MRT Lines is especially profound, when Sky Train stations are located near or connected to commercial centres and shopping malls.
The residential in the vicinity appreciate due to increased connectivity to the commercial hub.
That was the case with the first phase of the Bangkok BTS and MRT Train lines.
Property market in Bangkok post COVID-19
The COVID-19 outbreak is also being felt across all aspects of the real estate market in Thailand.
People need the cashflow in their hands and with no jobs and income many people need to sell their property in a much lower price.
This situation of the new Property Tax and the COVID-19 (CORONAVIRUSE) will affect the secondhand home in Thailand.