With land in prime locations becoming harder to acquire, developers looking to build new projects in Bangkok’s CBD are now considering renovating or even demolishing old buildings. Land prices for prime lots continue to set new records and older buildings are another way to purchase real estate in these in-demand areas, says CBRE Thailand.
Bangkok’s property market will see more companies buy old buildings in prime locations this year and beyond, predicts CBRE Managing Director Aliwassa Pathnadabutr. A few investors are already considering old hotels or offices to renovate since this can allow them to generate income in a shorter period of time than building new.
“In some locations in the central business district areas, there are no longer plots of land available for new development,” says Aliwassa. “Developers are now looking to buy old buildings in prime areas and demolish them for condo development.”
Some developers have been avoiding making land purchases in prime areas as prices currently make it difficult to build an income generating property. Land prices in Bangkok’s three CBD all set new records last year, shows CBRE research.
“Prime land prices will continue to climb into 2017 and new land price records will be set, although land price inflation will be more subdued in midtown and suburban areas,” says Aliwassa.
More records could be set to fall in 2017 with a new record land price expected to be recorded if a plot on Wireless Road owned by the British Embassy is sold, according to a Bangkok Post source. Central Group and TCC Group are the two companies bidding on the land with the Central Group expected to win the bidding, claims the source.
The Central Group already owns and operates the Central Embassy mall which is located on the land next to the British embassy. The company is expected to build a mixed-use project on the site if it wins the land auction.
Receive the latest property news on email from Thailand’s No.1 property website here, or read more project reviews
