Developers are likely to branch out at the infrastructure network improves.
Much of Bangkok’s condominiums are scattered along the city’s mass transit network lines. Heavily concentrated around the stations, developers are continually looking ahead to the next expansion of the BTS or the MRT in order to capitalise on any improvements to the system.
However news of the government’s policy to invest THB 1.79 trillion into infrastructure projects across Thailand is likely to change the existing strategy of developers who traditionally hone in on central parts of Bangkok.
The 20 projects that make up the policy were approved last year, and intend to improve the existing road, rail, sea and air transportation networks. Due to start this year and expected to run until 2036, it will be a real boost for the economy as businesses will be able to take advantage of the links across the country as well at the region. Logistics is big business in Thailand, estimated to be worth THB 3 trillion in 2016 – an increase of 7.5 percent from the previous year.
Improving the logistics network will reduce the costs associated to transporting goods between where they are manufactured to the end user. It will also open up new areas of the country as businesses take advantage of the improved logistics options. Property developers are taking heed of these plans by looking at suburban areas as part of their development strategies as there will be an opportunity to build accommodation for the workers based at these businesses.