Transit systems give a new meaning to location for home-buyers

Of all these considerations, location always comes first or second when we look at the data gathered from our visitors and buyers. For high-rise residential projects, the golden rule used to be that it had to be in a very prestigious and prime neighbourhood with easy access to downtown areas, like in Ploenchit or the first part of Sukhumvit, while proximity to main roads was the golden rule for low rises. 

Then along came the BTS and MRT, and that changed the whole perspective. Car usage became a preferred choice for more and more people. The punctuality and efficiency of the recent mass transit systems have allowed us to better manage our lives by just hopping on a train and arriving at the desired destination right on time.

From the information collected from our customers, it has been the norm for them to look for new homes in the same areas they used to live in. People from say, eastern Bangkok, are very unlikely to look for new homes in other parts of the capital. 

However, the arrival of the BTS and MRT is one of the major factors that have led people to consider deviating from the norm. The phenomenon was unprecedented. The term “location” that we had known was kicked out the door. “Location” used to be related to personal familiarity but we are now seeing more and more decision-making based on a new meaning.

These transit systems have allowed us to redefine the way we form our opinions on a specific location. Coupled with the change in our lifestyles and social trends, our idea of living in the same old environment has been challenged. Now people tend to look for new experiences in every angle of their lives, so why shouldn’t they consider changing the setting of their dwelling?

What we are witnessing in more sophisticated markets is an increase in the degree to which people’s lifestyles have made an impact on decisions when locating their new homes. 

Education, for example, has made its way into determining where families with kids will relocate. In the UK, a country known to have many top-ranking private schools, there has been an increase of interest in properties around establishments like Eton College and Winchester College, which could fetch a premium of more than 50 per cent. 

We are also seeing a similar trend in Bangkok, especially when there is fierce competition for places at top schools. Once parents get their kid accepted, they are likely to spend 12 years there, so it is worth considering a place nearby.

Another interesting development is also found in London, where the regeneration of rundown areas and derelict buildings has been something of a trend. In a recent article in the Financial Times, it was reported that five restaurants are opened every fortnight in London and that the sector’s employment growth rate has been one of the highest. 

Regenerations have been a success story not only by transforming an area into hip hangout places and new destinations for patrons but also in enticing developers to tag along and offer new residential units. A report from one agency says prices have risen for properties within 250 metres of some of London’s finest restaurants from 2003-13, which proves that people are actually competing for places near these establishments.

I am quite certain that in a few years’ time these kinds of micro trends will develop into important factors in the way we form our ideas on “location” and the way we choose a home. I think it is definitely going to be very interesting to see how the market for high-involvement products like properties will respond to the changes.