Thailand
Thailand: Project continuity encouraged
The next government would do well to continue planned infrastructure projects in order to boost housing demand, says Deputy Transport Minister Pailin Chuchottaworn.
At least 60% of the population or 40 million people will live in urban areas if mass transit lines are developed in major provinces, Mr Pailin said on Thursday at the House & Condo Show.
The event runs through Sunday at Queen Sirikit National Convention Center.
“Infrastructure is the foundation of the country’s development,” Mr Pailin said. “It will not only boost housing demand.”
In Greater Bangkok, 10 new mass transit lines under the second mass rapid transit master plan (M-MAP2) are in the pipeline. They will be located in the second ring with a radius of 40 kilometres around Bangkok, linking to Chachoengsao, Nakhon Pathom and Samut Sakhon.
Once the 10 new mass transit lines are completed, Bangkok’s population is forecast to rise from roughly 10 million to 15-20 million, with most people living in high-rise projects.
Mr Pailin said plans to build mass transit lines in Chiang Mai, Nakhon Ratchasima and Phuket are also afoot.
He said he expects the central business district to relocate to locations surrounding Bang Sue Grand Station because there will be mass transit such as the Red Line, high-speed rail and double-track rail, as well as expressways servicing the station.
“After the grand station is completed, there will be 2,300 rai available for property development projects that will cover commercial, residential and convention centres,” Mr Pailin said. “The land will be developed in phases and take 15 years to complete.”
Pornarit Chounchaisit, president of the Thai Real Estate Association, said homebuyers have rushed to get units transferred during the first three months to avoid the new loan-to-value limits that will take effect on April 1, 2019 and require a higher down payment.
“The number of housing transfers in March is very large because this is the last month [before the new LTV limits] and developers are campaigning to boost sales of ready-to-transfer units,” Mr Pornarit said.
At the same time, sales of off-plan units in the first two months dropped as homebuyers awaited the general election. Developers also slowed new supply launches.
According to Colliers International Thailand research, 64,900 condo units remained for sale in Greater Bangkok at the end of 2018. Of the amount, 19,171 units will be completed within the first quarter.
