Construction stocks and condominium prices have experienced robust gains in the last month in response to the ruling junta’s moves on economic reform, including the Bt3 trillion infrastructure project. According to the Stock Exchange of Thailand, the construction form Italian-Thai Development’s stock has rallied by over 30 per cent since the coup. Projects like the railway double-tracking and extensions to mass transit have helped price rises along.
Also, the Purple Line extension will give a massive boost to land prices, which have have tripled over the last four years on the back of construction of the extended Bang Sue-Bang Yai line that is planned for completion next year. Ten condominium projects have already been launched there since 2011 and the total number of units now stand around 10,000 and worth more than Bt50 billion.
The supply of condominium projects in this area covers 3,505 units from seven of the projects that have been built there and are open for sale where construction is under way. When added to new projects launched by Eastern Star Real Estate, with its Bt2 billion Amber condominium containing 563 units and the 1,232 units of AP (Thailand)’s Bt2.78 billion Aspire, the total supply of condominiums will be over 5,300 units.
Popular condo units in this area are selling for between Bt2-5 million per unit and the most popular property types are one-bedroom units of 25-30 square metres. Eastern Star Real Estate CEO, whose Amber project is the latest condominium project to be launched, said demand was mainly from locals and particularly those who work in the area who, up until now, have been renting.
Land prices close to the new Purple Line route now average Bt300,000 per square wah (4 square metres), which is 200 per cent higher than the average price four years ago. Along with it, land prices have risen, with residential projects in the area changing from low-rise housing to condominiums, where sales have averaged 400 units a month, despite the turmoil of the past few months.
It is predicted that when the Purple Line is completed in 2015, demand in this location will be even stronger and will also boost current resale prices by between 10 per cent and 20 per cent. There are also plans by the military to boost the public-transport system in Greater Bangkok to 10 routes, with intra-regional and inter-provincial road construction going ahead at the same time.