Land prices of 4,000 rai of land surrounding Suvarnabhumi Airport have dropped 40-50 per cent from last year's levels due mainly to noise pollution and flood problems, according to the Bangkok-based property consultant Agency for Real Estate Affairs.

The land covers four districts - Bangkok's Lat Krabang, Min Buri and Nong Chok as well as Samut Prakan's Bang Phli.

"From an average price of Bt2 million per rai last year, land located along the north-to-south direction of the airport where take-offs and landings take place is now priced between Bt1 million and Bt1.2 million," said Sopon Pornchokchai, managing director of the agency.

After Suvarnbhumi Airport commenced commercial operations on September 28, residents living in the areas next to take-offs and landings have complained about the noise created by the 45 flights per hour.

The noise will no doubt increase when the airport is operating at full capacity of 76 flights per hour.

The Civil Aviation Department and the Pollution Control Department recently discussed solutions to the problem. Next week, they are going to experiment with two new flight plans which they hope will reduce the din.

Meanwhile, large quantities of water has caused severe floods in flood-prone areas, which are designed to accommodate excess water from inner Bangkok.

According to a survey by The Nation, property developers which have been affected include Golden Technology Co Ltd, Preuksa Real Estate Plc, KC Property Plc, Land & Houses Plc and other small and medium-sized property firms which accumulated land in the air?port area.

Teerachon Manomaiphibul, executive director of Property Perfect Plc, said that after the noise pollution and flood problems hit newspaper, nearly all buyers changed their decision to buy homes near the affected four districts. The company's projects on nearby Soi Onnuj and Srinakarin Road, which are not affected by the noise, have drawn huge interest from homebuyers looking for a house in east Bangkok.

"Last week, the number of visitors increased from an average 100 a day to 200 because our projects do not suffer from floods and are located far from the airport, shielding them from noise pollution," he said.

Sopon said land prices remained at Bt2 million-Bt3 million per rai on average in Onnuj, Srinakarin and Pattanakarn, he said.

Developers who have accumu?lated land in Lat Krabang, Min Buri and Nong Chok were also hit by a new city plan which took effect May 1.

Prior to that date, 100 per cent of the land was allowed to be devel?oped into residential projects. But the new city plan specifies that only 30 per cent of the land can be devel?oped because the areas are designed for excess water in case of heavy rains. Also, condominiums can be developed but with no more than five floors.

A source in the property market said that most property developers knew the details before the city plan was promulgated. But they started to buy land in the area in the belief that the airport would boost land prices. As a result, land prices in the areas more than doubled from Bt800,000 per rai in 2004 to Bt2 million last year.

Prior to the coup, the Thaksin government planned to turn the land near Suvarnabhumi Airport into Suvarnabhumi City, where a satellite town would be located and more than a million inhabitants were expected. That is obviously a pipe dream at this point.

Somluck Srimalee

The Nation