Bangkok plots near asking prices

Bangkok’s land prices, down an average of 20% earlier in the year, have risen with the economic recovery to almost reach asking prices, say property brokers.

Investors seeking cheap land cannot bargain as they did earlier as the economy is set to improve next year, said Sahatchai Kwancheun, an executive-director of the property broker Harrison Plc.

Recovery would therefore slow land acquisition activity in 2010, he said.

Early in the year, some investors bought land for property development and speculation as they had plenty of room to negotiate prices, which reportedly dropped about 20% from the peak.

Most of the buyers are low-profile but cash-rich investors including Indian-Thai investors, small-sized local developers and non-property-related businessmen who have capitalised on cheaper land to enter the property sector.

Buyers who picked up land cheaply early in the year will start launching projects from the end of the year until early 2010, said Mr Sahatchai.

Next week, the developer Pool Asset Co, for instance, plans to launch a condominium on Phetchaburi Road with Century 21 as a consultant and sales agent. The new property firm One Property Development has also launched a condo project at the current House & Condo Fair.

Kitisak Jampathipphong, chief executive of the property brokerage Century 21 Realty Affiliates (Thailand) Co Ltd, said land prices in good locations, especially near mass-transit systems, have risen in the past two months.

Despite the slowdown, landlords with plots in good locations are rarely open to bargaining as they believe good plots are always sellable, he said.

Bangkok land is now going almost at asking prices, or about 5% above market prices, said Mr Kitisak.

* Published: 3/10/2009 at 12:00 AM
* Newspaper section: Business
Writer: Kanana Katharangsiporn
Position: Business Reporter
BangkokPost.com