Condo cluster sprouts along Airport Link
The soon-to-be-completed Airport Rail Link between Makkasan and Suvarnabhumi has created a new condominium cluster whose relatively inexpensive units are attracting buyers as the Rail Link readies for service, according to survey by The Nation last week.
Several projects worth more than Bt10 billion each are under construction or on drawing boards in popular locations including Asoke, Phetchaburi, Rajprarop and Makkasan, at the city end of the link.
Property developers began launching residential projects around the Airport Link when its construction began two years ago. Among the early projects were The Complete Rajprarop by Prinsiri, which is worth Bt1 billion and offers 547 units; Ideo Verb Rajprarop by Ananda Development, which offers 447 units and has a market value of Bt1.5 billion; and Chiwathai Rajprarop, which has 329 units and a value of Bt1.3 billion.
The Fragrant Property Group launched a condominium project, The Circle, last year. With a market value of Bt4 billion, 90 per cent of its 901 units have already been sold.
My Resort by Equity Residential, which launched pre-sales in 2008 and will be completed this year, is offering more than 200 units on Phetchaburi Rd and a 400-unit condominium called True Thonglor, developed by Pool Asset.
Asian Property Development introduced its latest luxury condominium, the Address Asoke-Phetchaburi, last year. With a market value of Bt3.3 billion, it offers 574 units at a starting price of Bt5.23 million per unit.
TCC Capital Land, a joint venture between Singaporean-based CapitaLand and TCC Land, which is owned by beverage tycoon Charoen Sirivadhanabhakdi, launched Villa Asoke, with a market value of Bt3 billion, last year.
Alan Lin, CEO of real estate firm Harrison, said the area around the Airport Rail Link was a new focal point for property developers because of the convenient transportation offered by the rail service.
The company is negotiating management deals with developers who own four land plots near the Airport Link, and plans to launch residential projects worth nearly Bt5 billion next year, he said.
“We believe that this location will continue to be popular through 2010. More than five projects are currently being planned that will offer a total of 4,400 units between now and 2011,” he said.
Condominium units in the area have starting prices between Bt75,000 and Bt150,000 a square metre.
Asian Property Development’s managing director Pichet Vipavasuphakorn said his company had launched The Address Asoke-Phetchaburi because the location would become a new destination for homebuyers when the Airport Link was complete and there was easy transportation in the area.
Land prices in the area also remain lower than those in the Sukhumvit, Sathorn and Silom areas. Homebuyers around the Airport Link will be offered new condominium units at lower prices than those in the inner central business district, although the inner CBD will be within easy reach, he said.
TCC Capital Land chief executive Soammaphat Traisorat said that after introducing Villa Asoke to the market earlier this month, a number of customers had shown enough interest to visit the project. As a result, the company believes that when bookings open this weekend, there will be positive feedback from customers.
“We believe that this area will be the new destination for residential development after the Airport Link starts operations,” he said.
Agency for Real Estate Affairs managing director Wasan Kongchan said demand for residences around mass transit systems continued to grow despite the economic downturn, adding that the behaviour of many homebuyers has changed away from single detached houses to condominiums because of last year’s spike in fuel prices.
“We believe this is a good time to buy a residence around the Airport Rail Link, before land and condominium prices in the area begin to rise,” he said.
Wasan said that when the Airport Rail Link began full operations, nearby land and residential prices would rise 10-20 per cent, depending on supply in the market.
Airport Link plans to begin full operations at the end of this year.
SOURCE: The Nation