Property values always increase when the mass transit lines are established close to the property. This has created speculation and people buying property in an area even before the line is completed. What was noticed was the prices close to the line at times would double in price as developers buy older property to demolish it for a new property development.
Mass Transit & Property
There are currently 98 stations in Thailand on the mass transit system and this covers more than 150 kilometers of rail line. In 2018 another 11 kilometers had been added to take the line as far as Kheha station in Samut Prakan. There is however a catch. Some stations are more popular than others so property next to or close to the station is not always going to push the property prices very high. Yes, it will increase but again depending on location this is going to be different. We know this from looking at the daily traffic on the lines. The Green line carries 750,000 passengers a day during the week while the Purple Line moves 45,000 each day.
One could however also make the argument that the reason for this is simply because that is where property has mainly been developed over the last 10 years and that this will change as the government encourages more property developments outside of the CBD and also extending the lines in this direction. With more mixed commercial and residential property coming on the market the current passenger numbers and direction will certainly change over time.
What makes property value close to the line now is how close are you to an interchange as they get more foot traffic than any other stations. Places like Asoke sees high rentals compared to other train stations. Sukhumvit – Asoke is where the skytrain and the subway cross. One could speculate that we will see more mixed development around these crossings into the future as they expand the mass transit system even further. Bangkok should have more than 450Km with 286 stations being added by 2030.
Property speculation is left to the experts or those who are not risk adverse. You should always take proper financial advice when making these types of decisions. Property laws in Thailand do change so you also have to keep this in the back of your mind. Speak to a property lawyer in Thailand for advice and assistance in this regard. Laws which are ahead are changes to the transfer costs being changed as well as a new plan to implement certain measures to correct property ratios in Bangkok.
Note also that you should have a due diligence done on the property as well as the developer before you decide to buy the property as there may be issues. This is normally never the case with large well known developers but there are many smaller developers in Thailand that you might need to look into before you sign any agreement. There are many uncompleted properties in Bangkok and you don’t want to be part of those failures.