Demand for land in traditional prime central Bangkok areas such as Wireless, Ploenchit, Sukhumvit, Rama I, Rajdamri and Sathorn roads is continuing to grow this year on rising demand for residences in these locations
The company’s research said the optimum plot size is normally between 2 and 5 rai (3,200 – 8000 square metres), to allow for a highrise project without it being too large to develop in one phase.
CBRE expects land values for prime locations to continue to appreciate as there are fewer plots available.
Kulwadee Sawangsri, executive director and head of CBRE’s investment and land services, believes more office buildings were sold in 2010 than in the previous five years combined.
During the year, CBRE’s investment and land team handled the sale of six office buildings with a total value in excess of Bt5.6 billion. The types of building varied considerably, ranging from freehold and leasehold office investments to freehold offices sold with vacant possession after large companies decided to dispose of noncore assets.
Overall investor sentiment was positive, a marked change from 2009, when there was very little investment activity. Last year was very active for land sales, with transactions concluded by CBRE in excess of Bt1.5 billion.
Large stocklisted developers were particularly active and a number of plots in the core Wireless Road and Ploenchit area were sold at prices well over Bt1 million per square wah (Bt250,000 per square metre).
CBRE handled land sales transactions for many of Thailand’s biggest developers, including Pruksa Real Estate and Noble Development.
Developers focused not only on the established areas in Bangkok and sites close to masstransit stations, but also on areas along the masstransit extensions and less developed areas in the centre of town, including Rama IV Road, Phetchaburi Road and Si Phaya Road.
Private investors were also active, particularly in seeking plots of 12 rai, primarily in the established core areas of the capital.
Kulwadee confirmed that developer interest remained strong for welllocated plots, particularly either in the centre of Bangkok or along the masstransit routes. Developers looking to launch condominium projects have continued to focus on the areas close to BTS Skytrain stations between the National Stadium and Ekkamai stations and between Ari and Chong Nonsi.
In addition, developers adopted a similar approach when acquiring land along the MRT subway route. Developers also looked at sites along the extensions of the existing BTS and MRT routes and many have already acquired significant landholdings in these areas.
Although there will be continued interest in many of the emerging areas along the BTS and MRT extensions, a number of developers are starting to be cautious about the number of condominium developments focusing on this segment of the market, she said.
Overall, the outlook for 2011 is positive and the company has already seen healthy levels of demand across all sectors.
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Demand for Land in Prime BKK Areas Still Growing: CBRE
