Mass-transit condos lead to new CBD

New condominium supply along the subway route between Rama IX and Phahon Yothin stations is 85.6% sold, says the Real Estate Information Center (REIC).

Director-general Samma Kitsin yesterday said this area, especially along Ratchadaphisek Road, is poised to become a new central business district (CBD).

Many new office buildings are being constructed along this stretch.

They include new headquarters for the Stock Exchange of Thailand, American International Assurance and many consumer product giants along with a large department store that opened along this stretch last year.

As well, a large commercial project called Makkasan Complex will be a major source of jobs, in turn attracting more condominium development.

Mr Samma said the large number of condo projects and cheaper land prices than in the current CBD will combine to turn this part of Lat Phrao and Huai Khwang districts into the next CBD.

However, too many new projects launching within a short period could slow the absorption rate, he said.

However, residential demand will rise on employees searching for a home near their workplace.

REIC research showed 43 new condominium projects comprising a combined 18,100 units launched within 500 metres along this stretch of the subway between 2009 and last month.

Of these projects, six comprising 3,400 units were launched this year.

Construction of 24 projects with 8,300 units was finished, 17 projects with 8,700 units were under construction and two with 1,100 units have not started construction.

All of these projects are expected to be completed by 2015.

Eleven of the 24 completed projects were sold out, as were three of the 17 under construction. Of the total units, 15,500 or 85.6% were sold.

Listed developers and their subsidiaries launched 21 projects representing 63% of total units.

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