Covid-19 | Impact on Thailand's Real Estate Markets

[Napoleon]

Covid-19 | Impact on Thailand's Real Estate Markets

[Sundance2020]

End of Skytrain Pass may impact Bangkok Condo Market



Bangkok’s 30-day BTS skytrain pass is coming to an end. As a result, commute prices will rise significantly for those who have to travel long distances on the skytrain each day. This may also have a major effect on Bangkok’s condo market. According to Sena Development PCL, the discontinuation of this skytrain pass is going to increase the demand to live around stations nearby workplaces. Sena’s managing director Kessara Thanyalakpark explained that the 30-day pass offered a fixed rate, which meant that buyers had many more options in terms of condo location. But, now with the discontinuation of the pass, she predicts that those options will diminish.

“After this pass is discontinued, the distance between condo and workplace will influence travel cost…In the past condo buyers had many choices, not just one or two stations. All along the line the average fare was fixed by the 30-day pass.”

For example, buyers who work in the Asoke area could opt for a larger condo around the less expensive Phraek Sa skytrain station, rather than needing to purchase a smaller one in the more expensive On Nut, which is much closer to their workplaces. But, travel expenses may increase by as much as double after the discontinuation of the 30-day pass. Kassara says riders can expect the fare to jump from around 3,000 THB per month to as much as 6,000-7,000 THB per month. She also pointed out that this could mean condo development in some new areas may increase.

“The radius of condo locations from the buyer’s workplace will be smaller, reducing from up to 10 stations to only a few stations…People will buy a home near their workplaces.”

Kassara also expects that a cut in condo prices and fewer new units being built will contribute to the slow condo market starting to pick up again. Last week, Sena announced their 385 million THB acquisition of condo developer Pataranan Asset. Sena will continue Pataranan’s project, which is building low-rise condos on Charoen Nakhon Road worth 2 Billion THB. Sena is also investing in condo projects on Rattanathibet Road and in the Bang Sue-Tao Poon area. These projects together represent a total investment of over 3 Billion THB.