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Suvarnabhumi » Suvarnabhumi Aerotropolis plan would have pros and cons

Sunday, July 20th, 2008

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Plans to create a so-called aerotropolis around Suvarnabhumi Airport, now put on hold by the interim government, would help the country’s economy but hurt the environment, developers say. Problems would arise with water drainage and general living conditions in the area surrounding the airport city, they said.

The aerotropolis plan had “pros and cons. Everything has a trade-off,” said Teerachon Manomaiphibul, deputy managing director of the listed developer Property Perfect Plc..

“If we’re ready in terms of finance, the plan will accelerate development in the area. And development will not limit only the area linking the airport and Bangkok or Pattaya, but it will expand in all directions. However, the development needs a huge investment and the vast area would block the water flow.” he said.

An aerotropolis is typically located near a seaport, but the closest one to Suvarnabhumi Airport is not big enough. Laem Chabang, located 130 kilometres from Bangkok in Chon Buri province, is too far. The geography was also a weakness as the area was basically a water basin, said Mr Teerachon, a former deputy Bangkok governor.

If the aerotropolis plan to have a commercial area is cancelled, the area surrounding it would be liveable.

Those who will possibly get hurt from the cancellation will be land owners with many plots in an area earlier designated within the plan.

Issara Boonyoung, an adviser to the Real Estate Developers Association of Samut Sakhon (REDAS), said the cancellation of the Suvarnabhumi aerotropolis plan would have less impact to property development in the area, as the aerotropolis was all about area management and administration.

The area surrounding the new airport would grow faster than Don Muang as air transport became more popular than in the past, he said, adding that Samut Sakhon would inevitably feel a positive impact from the new airport due to better access.He said the property market in Samut Sakhon, southwest of Bangkok, would do better next year than in the first half of 2006 due to stable politics, a downward trend in oil prices and stable interest rates.

“The property trend in Samut Sakhon is in line with the country’s economy. But the overall market situation in the province is better than in Bangkok,” said Mr Issara, who is also the managing director of Kanda Property, the residential developer in Samut Sakhon.

Supporting the property market are the completion of Rama II Road in western Bangkok, the opening of the Industrial Ring Road, the expansion of Ekachai-Bang Bon Road and the expansion of Rama II Road, which now stretches to Wang Manao in Ratchaburi, from six to 12 lanes.

During the first nine months of the year, the number of new housing units in the province totalled 4,000, worth a combined 12 billion baht. It had an absorption rate of 10% a month, higher than the rate in Bangkok.

The number of newly registered houses in the province from 1998 to 2005 was also the largest in the country, said Mr Issara.

REDAS, set up last year, plans to hold a Samut Sakhon land and house fair from Nov 17-19 at Ekachai Hospital, where more than 30 developers in the province will introduce in excess of 2,000 housing units. Sales of 500 million baht are expected from the fair.  (Bkk Post)

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