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Demand soars along Makkasan-Asoke route

The Nation March 27, 2009 Condominiums sell out, more planned this year Demand for residential properties along the route of the Airport Rail Link, between Makkasan and Asoke junctions, has shown strong growth in anticipation of the line's first services in August. A survey by The Nation this week found that residential projects in the area worth tens of billions of baht would be completely sold out before the rail link begins operations. These include the Circle Condominium project, developed by Fragrant Real Estate Develop- ment Group and worth Bt3 billion; Lumpini Place on Rama |IX Road by LPN Development |and valued at Bt5 billion; Ideo Verve on Rajprarop Road by Ananda Development, worth up to Bt2 billion; My Resort Bangkok by Equity Resident, worth nearly Bt3 billion; and Property Perfect's Metro Park on Ratchada, worth Bt5 billion. Another condominium project with a market value of nearly Bt3 billion is to be launched in the area by developer Siamnuwat in the fourth quarter of this year. A State Railway of Thailand source said many property developers, both domestic and foreign, had a strong interest in developing residential projects and commercial buildings around the Airport Rail Link. The source estimated that up to Bt200 billion would be invested in property development along the rail link this year and in 2010. The chief executive of real estate firm Harrison, Alan Lin, said that when the rail link's construction was complete, a new community would be created along the route, particularly between Makkasan and Asoke junctions. A number of property developers have expanded their investments in the area, especially on condominium projects catering for both the middle and luxury markets, with unit prices ranging from Bt2 million to Bt20 million, he said. The completion of work and start of regular services on the Airport Rail Link will also lead to a significant rise in residential prices in the area. "We see other property developers who have bought land and plan to launch new projects in this location. Such as TCC Capital Land [the joint venture between Charoen Sirivadhanabhakdi's TCC Land and Singapore-based Capit- aland], which plans to develop a condominium project in the area, and Sansiri has also bought land in this location to develop a condominium project," he said. After the Airport Rail Link is complete, State Railway of Thailand plans to develop about 100 rai (16 hectares) of land around the new line, to include a city airport check-in terminal, a transportation centre and commercial area. This will be in the area between Makkasan junction and Asoke junction. When the project around the Airport Rail Link is complete, it will drive land prices in the area up by as much as 100 per cent, Lin said. Already, land prices in the area between Makkasan junction and Asoke junction have risen from an average of Bt100,000 per square wah (Bt25,000 per square metre) two years ago to between Bt200,000 and Bt300,000 per square wah this year, he said. LPN Development's managing director Opas Sripayak said that demand for residential properties close to the Airport Rail Link had shown strong growth. Just one month after launching its Lumpini Place Rama IX condominium project on Rama IX Road, the company had succeeded in selling about 80 per cent of the project's first phase, which has a market value of Bt2.5 billion. In the face of such demand, the company plans to go ahead with a second phase of the project, also worth Bt2.5 billion, later this year, he said.

 

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