Thailand’s property development firms are preparing to spend big in order to purchase new land plots in the country this year. A survey conducted by local media found that 12 listed property firms are set to spend almost THB100 billion on new land purchases in 2018.
The residential projects set to be built on these land plots are valued between THB385.15 billion and THB385.64 billion. Land & Houses Plc is one of the companies looking to acquire more land and plans to spend as much as THB14 billion this year to fund the acquisitions.
“We are confident the property market will experience strong growth of 510 percent this year, thanks to the country’s estimated economic growth of 4 to 4.5 percent in the year, while the country’s exports and tourism have seen strong growth following the global economic recovery,” says Naporn Sunthrnchitcharoen, Land and Houses Chairman of the Board of Directors.
The Thai government continues to expand infrastructure investments and could pump more than THB2 trillion into the country between now and 2020, which has provided developers like Pruksa Holding Plc with more confidence about the state of the market. The company is willing to spend THB5 billion on land this year.
“With land prices rising, it will boost residential price increases this year by five percent. Land price rises were the main factor affecting residential price increases last year, while other cost factors such as construction and labour moved slightly,” says Pruksa Chief Executive Officer Prasert Taedullayasatit.
Land values have been soaring in Thailand over the past few years. Central Group and Hongkong Land jointly purchased a four-hectare land parcel on Wireless Road for THB1.86 million per square wah. This set a new price record for the Thai capital.
This story appeared on property-report.com
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