10 December 2018
PROPERTY DEVELOPERS are expanding their commercial and residential investments by more than Bt200 billion around the Red Line route under construction from Bang Sue to Rangsit, with expectations that the new route will start operating in 2021, according to a recent survey by The Nation.
For example, Central Group plans to open a shopping complex at a cost of Bt13.7 billion on a 616-rai (98-hectare) plot of land that was previously occupied by the Thai Melon Polyester plant.
Siam Future Development, the owner and operator of the Mega Bangna shopping complex, also plans to develop a Bt10-billion mega-shopping complex in Rangsit after acquiring a 1,000-rai plot in the area.
TCC Group, which is owned by beverage tycoon Charoen Sirivadhanabhakdi, owns 300 rai of land at North Park on Vibhavadi-Rangsit Road, and plans to develop a mixed-use project combining offices and a community mall.
PTT Plc also owns land located close to the Thung Song Hong Station on the Red Line route. A source at PTT said the company has proposed to the State Railway of Thailand (SRT) to build a skywalk linking its future project to Thung Song Hong Station.
The project may be a mixed-use one combining offices and a community mall, which is a new business model for PTT Plc.
Grand Canal Development Plc, now owned by Central Pattana Plc, has three land plots around the Red Line route with a combined 166 rai. Before Central Pattana’s acquisition, the company had planned to develop condominium projects worth over Bt10 billion on the three |plots.
Since SRT began construction of the 26-kilometre Red Line from Bang Sue to Rangsit in 2015, there has been a surge of interest among property developers as they plan commercial and residential projects along the route.
For example, Rangsit Plaza, owner and operator of Future Park Rangsit, has invested Bt5.8 billion to renovate the complex into ZPELL@Futurepark, expanding the retail space from 500,000 square metres to 600,000sqm.
Zeer Property has invested Bt3.9 billion to develop a new shopping complex, The Hub Rangsit, and to renovate the Zeer Shopping Centre Rangsit.
Prommaharaj Land Develop-ment, owner of the Bobae wholesale market, invested Bt3 billion in 2012 to acquire Merry King Rangsit and renovated it as Bobae Tower Rangsit in 2015.
Meanwhile, projects covering the full range of residences – single and detached houses, townhouses, twin houses and condominiums – have been launched along the route between Bang Sue and Rangsit.
According to a survey by the Real Estate Information Centre of Government Housing Bank, the year 2014 saw 34 residential and commercial project launches for a combined 11,300 units along the route. All were completed by 2016.
The latest survey by The Nation found that Bt100-billion worth of projects – single detached houses, townhouses, twin houses, and condominium – had been launched since 2015. They have a total of 30,000 units.
For example, Grand Unity Development launched Condo U Delight Ratchavibha, at a cost of Bt2 |billion, opposite the future Samian Nari Station on the Red Line |route.
Thonburi Healthcare Group last year launched their Bt4.4-billion Jin Wellbeing County residence project for ageing people on Phaholyothin Rangsit Road. Units in the project are already on sale.
Pruksa Real Estate Plc has introduced two plum condominium projects worth a combined nearly Bt10 billion on Rangsit.
AP (Thailand) Plc has introduced its single detached house project at Rangsit-Klong 4, while SC Asset Corporation Plc has introduced a project of single detached houses and townhouses at Rangsit-Klong 3 and Klong 4.
Supalai Plc has launch single detached houses and townhouses at Rangsit area, as has Kanda Group at Don Muang and Ransit district, while Sansiri Plc offers |condominiums, single detached houses and townhouses in the same area. All of these developers are confident this location has continuing demand for both condominiums and low-rise residential homes, including single detached house, townhouse and twin house projects.
LPN Development Plc has launched 10,000 condominium units priced between Bt500,000 and Bt600,000 on Rangsit Khlong 1 in its Lumpini Township project. Opas Sripayak, its chief executive, said the company believes condo demand in the district has continued to rise since the government’s decision to build the Red Line between Bang Sue and Rangsit.
The location can also boast market demand from students at Thammasat University’s Rangsit campus, along with Rajamangala University of Technology Thanyaburi, Rangsit University, Bangkok University and North Bangkok University, Opas said. It is also located close to Navanakorn Industrial Estate and Bang Kadee Industrial Estate, as well as other industrial parks, which means there is more demand for homes priced under Bt1 million, he added.
SC Asset Corporation’s chief executive Nuttapong Kunakornwong says his company has received positive feedback from the market for introducing detached housing via its |Life Bangkok Boulevard Rangsit project. The developer also plans to launch other projects in the Rangsit area.
“New infrastructure for both rail and road systems drives the strong growth in demand for residences in the location from Vibhavadi-Rangsit |Road to Phaholyothin in the Rangsit area,” Nuttapong said.
That demand for both residential and commercial buildings along the route has boosted nearby land prices by 24.1 per cent since SRT began construction of the 26km Red Line in 2014, according to a survey by the Real Estate Information Centre of Government Housing Bank.