Although Bangkok witnesses a slowdown in land purchases by major developers during the first six months of the year, individual investors kept purchasing plots with the intention of developing smaller condominium projects, or to simply resell them, with expected yields of between 15 percent and 20 percent.
In a column first published by The Bangkok Post last weekend, Khun Kulwadee Sawangsri, Executive Director – Head of Investment and Land Services at CBRE Thailand – noted that the most active locations for investors in Q1 in central Bangkok were Sukhumvit Road followed by Sathon Road,
Most of the transactions, she said, were small plots of between 300 and 700 sq wah with buyers acquired them to develop seven- or eight-storey condo projects.
She said: “There were no more revenue-producing assets in the CBD, such as office buildings, for investors to shop for. Many rushed into land, as land investment is like nothing else. If you miss out, you can’t find it again.”
According to research from CBRE, land prices in Bangkok’s central business district rose by between 15 percent and 20 percent year-on-year. Other research firms have reported similar increases.
The most expensive land plot sold by CBRE during recent months was transacted for THB1.6 million baht per sqw, while SET-listed developer Quality Houses was reported to have spent THB1.8 million baht per sq wah for a three-rai plot on Sukhumvit Road near Nana station
Andrew Batt, International Group Editor of PropertyGuru Group, wrote this story. To contact him about this or other stories email andrew@propertyguru.com.sg
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