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Bangkok Property will become more affordable

By on Nov 25, 2014 in Office, Property News, Residential

New mass-transit lines will help to cool a surge in land prices in locations near existing stations, making residential units in Greater Bangkok more affordable, a property seminar has heard. Tritecha Tangmatitham, deputy managing director of SET-listed developer Supalai Plc, said people in the mass market or middle-income segment could barely afford housing, as the cost of residential development rises by 8-9% per year.

712108“The government’s new property tax is expected to drive landlords to dispose of their land banks, while new mass-transit lines will present new residential locations,” he told the seminar yesterday.

Soaring land costs in the inner city near skytrain and subway lines were cooled by the announcement in 2010 of the Purple Line’s development.  “Once the line expands, there will be many more choices for middle-income people to afford a housing unit.”

Wason Khongchantr, managing director of Modern Property Consultant Co, said intermediate locations had become a choice for buyers who could not afford a residential unit in the inner city.

He said there would be no more dramatic increases in land prices in the inner city after they had tripled over the past 10 years. Soaring prices will be seen in locations where new mass-transit lines are constructed under the government’s infrastructure investment plan.

“It’ll be a chance for the office sector to develop new office buildings in the inner city, as new supply was scarce due to the booming condo sector in recent years,” Mr Wason said.  As a result of limited supply, office rents will probably rise to more than 1,000 baht per sq m in the near future from the present maximum level of 900 baht for a building on Wireless Road.

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