The price of land in Bangkok will likely keep increasing with central business district (CBD) being the most expensive, according to local media reports. Land prices in the CBD increased by 6.4 per cent last year and are already some of the most expensive in Thailand.
The highest price for land in the CBD was THB 1.91 million per sq. wah and happened during a 2015 sale, shows research from the Agency for Real Estate Affairs. And while no land sale in the CBD has matched the figure, sellers with land plots near the Bangkok Skytrain are asking for THB 2 million per sq. wah or more at the moment.
Land plots in locations along the Sukhumvit skytrain route from Siam to Asoke are now very limited and with prices so high, there are not likely to be many land sales in the CBD this year, says Surachet Kongcheep, Associate Director for Research at Colliers International Thailand, to the Bangkok Post.
“No landlords on the main road along the skytrain in these locations have offered prices lower than THB 2 million per sq. wah since last year. The record high offering price is THB 2.5 million on Phloenchit Road,” says Surachet
In Greater Bangkok, land prices are predicted to rise by 4 per cent on average this year, which is similar to the increase recorded in 2016. The highest increase in price last year was near the Asoke intersection where land prices rose by 27 per cent to THB 1.4 million baht per sq. wah.
Most of these plots are bought by developers who build luxury condos on them, but with demand for this segment limited, it’s unlikely companies spend the money necessary to acquire land in the CBD for the time being.
“Developers have a ceiling price for buying plots in prime locations. As soon as they think a condo project developed on the plot can be sold at a high price, they will buy despite such high land prices,” says Surachet.
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