Project name : Rural road connecting the National Highway no. 3256 and 200-years Rattanakosin Road as announced in the royal decree dated 20 August 2020, valid for 5 years.
Project detail :
The total distance is approximately 16 kilometers. The starting point of the project is on Wat King Kaew Road, cutting through Suvarnabhumi, Bangna-Trad Road. The project will run parallel to Bangna Trad Road along the way. Then the direction is leading slightly to the southeast, intersecting with Wat Si Wari Noi Road and several important secondary roads, such as Ruam Pattana Roads, and continue to meet with 200 years Rattanakosin Road 200, with an average road width of 60-meter. Project is located in Racha Thewa and Bang Bo Sub-districts, Bang Sao Thong and Bang Bo District, Samut Prakan Province. The narrowest part is 200 meters and the widest part of 1,500 meters. The project is to be surveyed by personnel during on-site inspection.
Project responsible person : The project is led by the Department of Rural Roads. The exploration of land and real estate located within the expropriated land boundary where the project is to be built is currently underway until 15 February 2021 (total 180 days). The project construction is scheduled to be complete within 5 years.
Project analysis :
Primary objective : To reduce traffic congestion on Bangna-Bangpakong Road at the exit to Suvarnabhumi Airport, by opening an additional secondary road which leads to the airport. With an improved traffic and other transportation mobility, land in this area will benefit and enable full utilization.
Effect on business sectors :
Industrial – Positively Positively affected due to the main objective of this project is to increase convenience in terms of traffic and transport mobility. Expansion of the 2 industrial estates in this area; Bangplee Industrial Estate and Wellgrow Industrial Estate is highly anticipated.
Residential – Directly affected, new residential projects tend to be launched for both single house or condominium projects. Traffic mobility enables more households to move further out of city areas into the suburbs, which are yellow and orange color zonings where development of projects are allowed.
Commercial – directly affected due to the increase in housing. New department stores are likely to pop up while existing markets and restaurants can expect better economic growth.
Real estate investment perspective :
The project brings about land investment opportunities waiting for investors to develop. The new road serves as an accessible route for many plots of land that used to be blind land or landlocked. Hence, these lands suddenly become appealing for investment. Investors may choose to purchase adjacent plots in order to gain a big piece of land with huge potential for development. Investors can simply hold and sell them for profit in the future or look for development companies with financial capability of turning land into estate. According to the city planning regulations, the land surrounding the area is mostly assigned with green zoning, meaning land for rural and agricultural purposes. This followed with yellow and orange zoning, less dense residential type and moderately dense residential type respectively. There is also a potential of more blue and purple zoning which are for government agencies and environment-friendly industrial warehouses respectively. The red commercial area will stand to benefit from the more residential surrounding areas. Note that some color zoning may change after the completion of the project.
From the land price survey, Invest:MaN presents to you information on land prices that have been proposed in the market, divided into 4 groups, briefly as follows:
- Large undeveloped plot of land suitable for agricultural development. The selling price starts from 8,500,000 to 14,000,000 baht per rai (land adjacent to main road) or 21,250 to 35,000 baht per square wa. The offering prices differ since the starting price is for land located in industrial purple zoning far from the city area, while the land with highest price located near the main road in the yellow zoning, a less dense residential alternates with the agricultural area.
- The selling price for sub-plot of land in a development project ranging from 30,000 to 95,000 baht per square wa. The prices differ due to the high prices for lands located in the commercial area compared to less expensive lands located further from the city deep into rural areas with orange zoning, a less dense housing area. Overall, land prices in the development project are still in line with today’s prices for undeveloped lands. Price movement may spin in the next period.
- The selling prices for land within or surrounding Wellgro and Bangplee industrial estates; prices starting from 18,000 to 25,000 baht per square wa, and 30,000 to 50,000 baht per square wa respectively, depending on other factors such as exact location, project condition and land size.
- There are few new condominium projects in the area of the survey because there is an airport close by, meaning high rise buildings are restricted. More projects are likely to be constructed further away from the airport once complete. Currently, few new condominium projects on Sri Varee Noi and ABAC Road are selling for 50,000 up until 75,000 baht per square meter, varied by locations and conditions. The resale value ranges from 40,000 to 50,000 baht per square meter.