2010 proved to be a busy year in terms of commercial building sales in Bangkok, according to the leading international property consultant CB Richard Ellis CBRE.
Ms. Kulwadee Sawangsri, Executive Director and head of CBRE’s Investment and Land Services believes that more office buildings were sold in 2010 than in the last five years combined. During the year, the CBRE’s Investment and Land team handled the sale of six office buildings with a total value in excess of THB 5.6 billion.
The types of building varied considerably, ranging from both freehold and leasehold office investments to freehold offices sold with vacant possession after large companies decided to dispose of non-core assets.Overall investor sentiment in 2010 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 THB 1.5 billion. The large stock-listed developers were particularly active and a number of land in the core Wireless Road and Ploenchit area were sold at prices well over THB 1 million per square wah.
CBRE handled land sales transactions for many of Thailand’s biggest developers, including Pruksa Real Estate Plc. and Noble Development Plc.
Developers focused not only on the established areas in Bangkok and sites close to mass-transit stations, but also on areas located along the mass-transit extensions and less developed areas in the centre of town, including Rama IV Road, Petchaburi Road and Si Phaya Road.
Private investors were also active, particularly in seeking land plots of 1 rai – 2 rai, primarily in the established core areas of Bangkok. Ms. Kulwadee confirms that developer interest remains strong for well located land plots, particularly either in the centre of Bangkok or along the mass transit routes. Developers looking to launch condominium projects continued to focus on the areas close to BTS stations between National Stadium station and Ekamai station along the light green line and between Ari and Chong Nonsi on the dark green line.
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