Land prices across Bangkok, especially those connected or near current and future mass transportation lines, are expected to increase once again in 2016, The Nation reported. Leading property firms continue to buy up land in these locations which is one of the reason prices continue to skyrocket.
In the last two months of 2015, these developers purchased THB16 billion worth of land. According to the newspaper, the next big land deal could be completed by the end of February.
A plot of land on Ratchadaphisek Road was purchased in November of last year at a price of THB9 billion. The plot had 33 rai and it ended up costing nearly THB170,454 per sqm. A deal for 40 rai on Vibhavadi Road near Hor Wang School was closed for THB7 billion in December. That purchase was made by a joint venture between BTS Group Holdings and Sansiri.
The next big deal will likely be for a 700-rai plot near Krungthep Kreetha Road. It is owned by Bangkok Land and they are already negotiating a sale in which they expect to receive at least THB8 billion. The Nation was informed by a source with knowledge of the situation that leading property firms owned by major conglomerates are among the parties interested in the land.
The source also told the newspaper that the demand among big companies to buy undeveloped land continues to grow in Bangkok as developers look to build residential and commercial projects in locations near the mass transit system which they see as having a lot of potential.
“This year will be a difficult year for small and medium-sized property firms to do business when leading firms, especially the big conglomerates such as Singha Group, TCC Land, CP Land and Central group, began expanding their investment in the property market last year, driving the demand for land. This is also pushing up land prices this year,” the source claimed.
