Cheyenne Hollis | Nov 08, 2012 | Comments 1
A shortage of available land in Bangkok?s central business districts has caused residential developers to move their projects far from the inner city but still close to extended and proposed mass-transit routes, The Nation reported.
According to a survey by The Nation, one of those locations is from Rattanathibet Road to Nonthaburi?s Bang Yai district, which is close to the MRT Purple Line that will run from Bang Sue to Bang Yai.
Issara Boonyoung, president of the Housing Business Association and chief executive officer of Kanda Group, said that some developers turned to the new locations when CBD land prices rose to a level at which they could no longer develop projects suitable for the market.
Although some downtown locations continue to have land available for residential development, the cost is higher than in the outskirts, which means buyers would have to pay more.
The average price per residence in prime locations exceeds THB5 million (US$ 162 million) but purchasing power averages below that figure, so developers have to find land outside the CBD, Boonyoung told The Nation.
Demand for outer-CBD locations has been driving land prices up since last year, especially for locations where land prices never increased in more than 10 years, such as the Rama II and Phetkasem areas. Issara, who is working on a residential project on Rama II under the Kanda brand, said land in that area in some locations near and along the main road has doubled in price per square meter over the past two years.
Filed Under: Country News ? News ? Thailand