Land prices continue to rise sharply around new Bangkok airport

BANGKOK: -- A surge in land prices around Bangkok's new airport is expected to continue despite a depressed real estate market elsewhere in the capital brought on by the country's economic slowdown, experts say.

Property values around the Suvarnabhumi air hub, which have risen 47 percent since 1998, are expected to climb an additional 7.0-8.0 percent a year, according to the property consultant Agency for Real Estate Affairs.

That compares with growth of only around 3.0 percent predicted next year elsewhere in Bangkok, which has seen slumping land values since 2005, Agency president Sopon Pornchokchai said late Tuesday.

"The average land price in Bangkok is expected at grow only 4.0 percent this year, compared to 5.8 percent growth in 2004, and it will further drop for the third consecutive year in 2007 because of the economic slowdown," Sopon said.

"But the growth rate around the new airport will be significantly higher as many developments are taking place and heading there," he said.

Development around Suvarnabhumi, some 25 kilometers (15 miles) east of the city, is expected to attract more than one million people over the next few decades and the government plans to carve out an entirely new province circling the airport to accommodate the influx.

Suvarnabhumi airport, whose name means "Golden Land" in Thai, is set to open for commercial traffic on September 28 to replace the existing Don Muang international airport.

Thailand hopes the new three billion-dollar airport will put it ahead of Malaysia and Singapore as the region's aviation hub.

— AFP 2006-09-06

And land around Don Muang is getting cheaper ?

And land around Don Muang is getting cheaper ?

That would be a western logic, i guess.

I think some people are going to lost some money. I remember 2 years ago, the government wanted to use DM in order to relocate some agencies and services, even complete ministry.

So it was gold rush, around pathum thani for instance, we had thousands houses, townhouses built.

This project was of course scrapped. But we still have the townhouses.

Empty.

I heard a rumour that land was going to be given for free, to enable the Parliament to move to a site near to the new airport, buildings & utilities & access to be at the public expense of course. Brown-envelope manufacturers are already adding production-capacity.

This would probably help to boost land-prices too. I wonder who would benefit from this ?

To suggest that there is no real reason for the move - other than the effect on land-prices - would of course be totally cynical and untrue.

not much hope for muang thong thani then !it was a desolate place before .

All those Gardeners, Chauffeurs and Maids of "Prominent" people in Bangkok must be rubbing their hands at the prospect of their rapidly increasing investments.

This will be good news for my brother-in-law.