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Thailand: Colour-coded condo markets
Homebuyers and developers alike have been eagerly watching the progress of the new Orange, Pink and Yellow mass-transit lines that will serve the northern and eastern parts of the capital region. Construction is under way on the Orange Line and the developers of the Yellow and Pink monorail systems have secured financing for their projects.
Residential property developers have been actively buying land along all three routes over the past four years in anticipation of healthy demand for condominiums, and the number of new units on offer has been increasing steadily, especially since 2016 in the area along the Orange Line.
Many see the area along the Yellow Line as having the most potential for new condominiums, as it is already quite developed with many established neighbourhoods, while the Lat Phrao MRT station will serve as an interchange with the Yellow Line. As well, many facilities are already available along busy Lat Phrao Road.
But as planning for the three new lines progressed over the past four years, the Orange Line has had the highest number of new condominium launches. The number of units in the area now totals 12,703, mostly concentrated in strategic locations. Some buildings in the area have more than 1,000 units.
Condominium units along the Yellow Line total 9,190, but they are found mainly in a few locations as large parts of the area lack the variety of facilities and amenities found along the other lines. However, activity should increase in the future as land prices are becoming an obstacle to further detached-housing development in areas along Ram Intra, Lat Phrao and Srinakarin roads.
Land prices in the areas along the three lines have also been increasing continuously, especially along the Orange Line around the Thailand Cultural Centre station, which will be an interchange with the MRT Blue Line. Asking prices for some plots in this area have exceeded 800,000 baht per square wah but they decrease gradually the farther one gets from the station. Even the cheapest land along the Orange Line now costs more than 100,000 baht per square wah.
Land prices along the Yellow and Pink lines are also creeping up, with no plots available for less than 100,000 baht per square wah. Prices of most condominiums in all three areas have been lower than 100,000 baht per square metre, but some new developments are now selling at more than 100,000 baht per sq m.
Most of the new development activity along the three lines has taken place since 2014, and while services are still a few years away from opening, take-up rates have been high: 88% along the Yellow Line, 82% along the Orange Line and 77% along the Pink Line.
The availability of new condominiums in these three locations will certainly increase in the future, depending on the progress of construction of the mass-transit systems. But the pace may slow as only some locations — notably those close to shopping malls, government centres or interchange stations — appeal to developers and prospective buyers. But as land prices for prime sites climb and force condo prices up, more affordable second-tier locations could become more interesting in the next one or two years.
Source: https://www.bangkokpost.com/business/news/1437598/colour-coded-condo-markets