Central provinces set for high-speed railway boost

Central provinces set for high-speed railway boost

Prices for properties near stations may rise

Lop Buri and Nakhon Sawan are expected to be the top two provinces for rising land prices in the coming years if the first phase of four high-speed train projects kicks off.

Thitiwat Teerakulthanyaroj, an executive vice-president of property consultant Century 21 Realty Affiliates (Thailand), said both provinces will become an emerging market for property once they have high-speed train stations.

"These two Central Plains provinces are new to property development as there have been no key drivers," he said. "Their land prices have been stable."

According to the Transport Ministry, the first phase of the four high-speed routes will run from Bangkok to Phitsanulok (342 kilometres), Nakhon Ratchasima (256 km), Pattaya (187 km) and Hua Hin (225 km).

Mr Thitiwat said other destinations served by the first four routes have seen an increase in land prices for consecutive years and already have a mature property market.

Pattaya is driven by tourism and industry, Hua Hin by tourism and Ayutthaya by industry, while Phitsanulok and Nakhon Ratchasima are big cities and transport hubs.

Mr Thitiwat said high-speed rail links will bring an opportunity to create new development near stations.

Areas within the first ring close to stations will usually belong to the government, which may lease land to the private sector to develop commercial property such as hotels, offices, retail outlets and conference facilities.

"The second ring will attract condo development due to higher land prices. The third ring will be for low-rise houses," Mr Thitiwat said.

In phase two of the high-speed rail network, routes will extend to Chiang Mai in the North, Nong Khai in the Northeast, Rayong and probably Chanthaburi and Trat in the East and Padang Besar in Songkhla in the South.

Late last month, Century 21 joined Thammasat University's architecture and planning faculty to conduct a survey on condo demand near high-speed rail lines among 1,115 people living in Bangkok, Nonthaburi and Pathum Thani.

About 88% of respondents agreed that high-speed rail influenced their decisions to buy a condo unit.

The most popular route was Bangkok-Chiang Mai, followed by Nakhon Ratchasima, Hua Hin and Rayong.

Asst Prof Pornphan Verapreyagura said people view Chiang Mai as a booming tourist destination after many Chinese visitors followed a popular Chinese film made in the province.

However, Mr Thitiwat said the Bangkok-Chiang Mai route will be more difficult to build than other routes due to its undulating geography.

The 745-km route is so long that an environmental impact assessment will take longer, but the route is regarded as the most valuable.

Asst Prof Pornphan is also researching the three restive deep-South provinces of Narathiwat, Pattani and Yala.

"They are strategic destinations, a door to other Asean countries, due to good infrastructure," she said.

"Despite the violence, people in these three provinces rarely relocate elsewhere. Fewer than 1% have moved out, but they did not sell their houses in their hometowns."

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