Land prices in the “Srinakarin-Suan Luang” area have surged to 420,000 baht per square wah (4 square meters), as developers plan to establish a foothold for the next decade with 19,000 condo units. According to Colliers research, the region is currently classified as a “yellow zone”, but city planners may soon reclassify it as a “red zone”, which could fast-track real estate development and potentially increase land prices by an estimated 50%.
The Yellow Metro Line will commence free trial rides from Lat Phrao to Samrong, covering a distance of 30.4 kilometers, on Saturday. This monorail system is composed of 23 stations, originating from the Ratchada-Lat Phrao junction. The line runs along Lat Phrao Road until the Bangkapi intersection, where it takes a right onto Srinakarin Road. It continues through the Srinakarin, Sri Udom, and Sri Thepa intersections before turning right again onto Theparak Road, finally ending at the intersection with Sukhumvit Road at Samrong Station.
Land prices along the Yellow Metro Line have experienced significant growth over the past decade, with more increases anticipated in the future.
Phattarachai Taweewong, director of research at Colliers International’s Thailand office, noted that in the last ten years, real estate projects developed along the Yellow Metro Line have encompassed the creation of over 19,229 condominium units. There has been ongoing investment from developers, including completed projects, projects in development, and projects awaiting future opportunities.
Before a project’s eventual cancellation, developer Pruksa purchased a 12-rai plot in Happyland Market for over 2 billion baht. They had planned to build six buildings with a total of 2,000 units, estimated to be worth between 4 and 5 billion baht. This left the land within the Lat Phrao area undeveloped.
Developing real estate projects in the Lat Phrao area comes with challenges and obstacles, such as zoning restrictions that limit high-rise projects. This has led to slower growth compared to other metro line areas, resulting in relatively moderate land prices in this region compared to other locations.
Phattarachai explained that in the fourth quarter of 2022, there were a total of 19,229 condominium units in the Lat Phrao area. Prices along the Yellow Metro Line were initially high, ranging from 70,000 to 80,000 baht per square meter over the past decade. However, they have since climbed to 120,000 to 130,000 baht per square meter.
He also pointed out that the Lat Phrao area is an urban area with easy access to the city center, but it is restricted by urban planning regulations regarding building height. As a result, real estate projects here are not as prominent as those in the Pink or Orange Metro Line areas. The market is waiting for new urban planning that unlocks potential for more active real estate development in the Lat Phrao area.
Phattarachai believes that land in this zone has already been purchased by developers, but no projects have been launched because they are waiting for a new urban plan that will designate the zone as red after the Yellow Line becomes operational. This would represent a significant turning point, potentially causing land prices to increase by 50%.
He added, “As soon as the urban plan is released, those who purchased land earlier will have obtained it at a much lower price. If developed into condominiums, the new selling price is expected to exceed 100,000 baht per square meter, while the land price at 250,000 baht per square wah is considered very favorable. Many developers are waiting for the transformation of Lat Phrao into a red zone.”
MRTA recently announced that on Saturday, June 3, 2566, the Yellow Metro Line (MRT Yellow Line) will be ready for the general public to participate in the trial run from 09:00 AM to 08:00 PM. This trial run will cover 13 stations, including Hua Mak Station, Kalantan Station, Si Nut Station, Srinagarindra 38 Station, Suan Luang Rama IX, Si Udom Station, Si Iam Station, Si La Salle Station, Si Bearing Station, Si Dan Station, Si Thepa Station, Thipphawan Station, and Samrong Station. However, at Hua Mak Station, entrance and exit will be limited to Gate 2 (Phattanakarn Intersection) and Gate 3 (Soi Srinagarindra 16), which will be operational first.
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