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Tuesday, January 15, 2008

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Monday, March 19, 2007

Don Muang land price still stable

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Don Muang land price still stable

Property unaffected by resurrected airport
A possible shift of some domestic flights from Suvarnabhumi Airport back to Don Muang will have no impact on land prices and the property consultants and developers.
Wasan Kongchan, Deputy managing director of the property consultant Agency for Real Estate Affairs (AREA), said a shift would not bring much benefit to the area around Don Muang as it would only represent a fraction of Suvarnabhumi’s traffic.
Since the opening of Suvarnabhumi Airport, the number of hotel, apartment and warehouse businesses near Don Muang has dropped, but the residential and land markets have remained stable.
“Land prices will tend to rise as the location [near Don Muang] is now quieter. Even if some flights move back, noise pollution will not be high,” he said.
Any windfall from the reopening of Don Muang would likely be seen in the apartment market in the area, which had dropped since the relocation, he added.
Meanwhile, since the opening of Suvarnabhumi, noise pollution has choked out the anticipated boom.
“No one provided information about noise pollution in 2003 and 2004, the years when land prices started to go higher in the area. Some follwed the trend and bough land at very high prices,” said Mr Wasan, who surveyed prices in the area last year.
According to AREA’s survey, land prices in Suvarnabhumi rose only 4-5% in 2002, but more than 10% in 2004 and 2005 and some areas soared by 50% or more due to high demand.
However, land prices are now stable, while some housing projects have seen a drop in sales.
The locations bearing the brunt of noise pollution from Suvarnabhumi are to the north and the south of the landing and take-off areas, including Lat Krabang, Rom Klao, Bangpli, Theparak and Bang Na Trat Km. 14-16.
“Whether the [old] airport reopens or not, the Don Muang area will benefit from the Red Line mass transit link between Rangsit and Mahachai and the opening of the government centre in Chaeng Wattana,” he said.
Prasert Taedullaysatit, executive vicepresident of the listed developer Preuksa Real Estate Plc, said it was expected that only domestic flights would move back to don Muang, which would not have any impact on the property market or land prices. He said the Don Muang area would never drop in popularity due to its proximity to the shift of some flights would not affect the property market. Overall land prices in both locations remain stable due to the current economic situation, he added.