Logo of Phnom Penh Post newspaper Phnom Penh Post - Bangkok MRT Purple Line extension to lift real estate



Bangkok MRT Purple Line extension to lift real estate

Content image - Phnom Penh Post
Bangkok’s MRT Purple Line will be extended southward into Rat Burana district and neighbouring Phra Pradaeng in Samut Prakan province. THE NATION

Bangkok MRT Purple Line extension to lift real estate

Krungthai Compass, the business analysis arm of Thailand’s Krungthai Bank, believes the MRT Purple Line’s southern extension will attract up to 80 billion baht ($2.4 billion) in real estate investment in Bangkok’s Tao Poon-Rat Burana area.

Compass executive vice-president Phacharaphot Nuntramas said the 110-billion-baht extension of the MRT Purple Line will be a boon for the real estate market, attracting private sector investments.

He reckons the extension will boost the sale of homes in the area by 25 per cent to 9,600 units this year from 7,700 units between 2018 and 2020.

Once the Covid-19 situation eases, the condominium developments in Bang Sue and Khlong San areas and townhouses in the Pracha Uthit-Phutta Bucha area, in the below three-million-baht price bracket and those no more than five million baht, will benefit the most.

He said these units meet homebuyers’ needs and grant 30-40 per cent of the price as profit for the developer.

He also expects the number of convenience stores in the area to rise by two- or threefold. Currently, there are four to five convenience stores per 10,000 people in Thailand.

Compasss analyst Kanit Umsakul said government investment in this project will boost gross domestic product (GDP) growth by 0.1-0.2 per cent. Though many construction sites were temporarily closed at the start of the third quarter, construction resumed in the middle of the quarter and many developments may meet their deadline in the fourth quarter.

He also believes the real-estate sector will grow significantly next year because the government plans to boost foreign ownership percentage in condominiums. Foreigners can currently only own 49 per cent. The government is also planning to allow foreigners to buy land and houses worth more than 10 million baht.

As for Bangkok and its adjacent provinces, Compass speculates that the number of properties bought will rise by 4.8 per cent or by 370 billion baht during the rest of this year, and by 5.1 per cent or 389 billion baht in 2022.

However, it says the number of condominium units bought will drop by 4.4 per cent or 249 billion baht until yearend, though it will rise by 3.2 per cent or 257-billion-baht next year.

THE NATION (THAILAND)/ASIA NEWS NETWORK

MOST VIEWED

  • Cambodia to waive quarantine requirements Nov 15, no PCR test required

    Prime Minister Hun Sen has decided to lift all quarantine requirements for fully vaccinated travellers and visitors – both Cambodians and foreign nationals – effective from November 15 onward. In a special message addressed to officials and relevant authorities on November 14, Hun Sen said this policy will enable

  • PM: No more quarantine for vaccinated travellers

    Cambodia is lifting all quarantine requirements for vaccinated inbound travellers entering Cambodia by air, waterway or land border checkpoints effective from November 15. Travellers will be required to take a rapid antigen test on arrival rather than waiting for the results of the lengthier polymerase chain

  • No payment required for travellers taking rapid Covid tests on arrival

    Ministry of Health officials said there would be no payment required for the rapid Covid-19 tests given to travellers who arrive in Cambodia from November 15 onwards after the quarantine requirement is lifted for fully vaccinated people. Health ministry spokeswoman Or Vandine told The Post on

  • General’s gun smuggling ring busted

    The Military Police sent six military officers to court on November 22 to face prosecution for possession of 105 illegal rifles and arms smuggling, while investigators say they are still hunting down additional accomplices. Sao Sokha, deputy commander of the Royal Cambodian Armed Forces and commander of

  • More Cambodians studying in US

    The number of Cambodian students studying at US colleges and universities in 2020-21 increased by 14.3 per cent over the previous year despite the Covid-19 pandemic, according to a recent US government report. The 2021 Open Doors report on International Educational Exchange showed that 848 Cambodian students studied

  • Cambodia, Thailand to discuss border reopening

    Cambodian authorities from provinces along the Cambodia-Thailand border will meet with Thai counterparts to discuss reopening border checkpoints to facilitate travel, transfer of products and cross-border trade between the two countries. Banteay Meanchey provincial deputy governor Ly Sary said on November 22 that the provincial administration