Bangkok rail transit drives land inflation

Land prices in Bangkok have been rising at a steady rate for the last few years, but with the announcement that the government will invest B500 billion in a new mass-transit network has drastically driven up the price of land near the future stations. In a survey by The Nation, areas that were experiencing appreciation of about 10% per annum have seen prices rise by as much as 100%.

While it will still be a good while before any stations open their doors on the new routes, forward-thinking prospectors and potential home owners are already scrambling for a piece of the action. The Nation’s survey found certain areas were already abuzz with inquiries, such as the area from Sukhumvit soi 107 to Onnuj, Rama V to Sathorn and Mo Chit to Rangsit.

Construction on the new transit system is expected to start by the end of the year, with speculation that land around the new lines will double in value by the time it becomes operational.