Bangkok Real Estate

The company’s chief executive officer Alan Lin said that property prices, especially for city condominiums could rise up to 20 per cent in a couple of years time due to increase in cost of land. However, he said, they are still priced at an affordable level, especially compared to many countries in the region such as Singapore and Indonesia.

“It’s not a surprise now to find a condo unit in downtown area that could cost up to THB 100,000-200,000 (US$ 3,080-6,160) per square metre. The city condo price has increased 5-10 per cent from last year and I’m sure that it could go up more in the years to come”.

Lin also had similar views towards land prices. “Since 2006-2008 land prices in popular locations in Bangkok like Silom, Sathorn, Ploenchit, and Sukhumvit have increased up to 50 per cent

Despite that fact, Lin is confident that demand for properties in prime locations will remain high.

In Q3, Lin said the company will be adding 10 new projects worth about THB 12 billion (US$ 370 million) into its portfolio, all of which are located in the prime area of Bangkok. It also plans to launch the sales of another 10 new projects, worth over THB 6 billion (US$ 185 million), during the remainder of 2010.

Property Transactions full steam ahead?

The most notable transaction during the period, according to the report, was the sale of 34,000 sqm of strata title offices in Serm Mit tower on Sukhumvit Soi Asoke by Lasalle Investments to S.P. Building Co., Ltd. The transaction price was approximately THB 1.5 billion, or equivalent to approximately THB44,117 (US$1,360) per sqm.

Values of prime land plots in the central Phloenchit area have risen above 2008’s record levels, to a new peak of THB1.5 million per square wah. As previously reported Sansiri Public Company Limited acquired 2-rai plot adjacent to the American ambassador’s residence on Wireless Road. The total transaction value was THB1.2 billion (US$37 million), while Raimon Land has apparently sold 2-3-42 rai out of a total of approximately 9-rai on their Ploenchit site.

The Thai Commercial Investment Fund (TCIF) plans to launch a freehold property fund investing in the Nation Tower Building, which consists of three office buildings and one car park building during Q2 2010. The subscription period for the IPO was March 15-23, 2010. The fund had a market capitalization at IPO of approximately THB1.96 billion, with par value of 10 baht per unit. The fund will offer a minimum guarantee return of 4-5% for three years.

During the first quarter of 2010, the Thai economy continued to improve with many economic indicators showing a ‘V’ shaped recovery. The National Economic and Social Development Board expected GDP in this quarter will increase around 6 per cent year-on-year. Thailand’s equity markets have gained about 7 per cent since the beginning of the year.

During the quarter property funds offered investors annualized yield of between 4.8 per cent and 11.2 per cent. There was no new Property Fund listed on the Stock Exchange of Thailand during the quarter.

SOURCE: Property-report.com

From the research firm Real Binswanger Brooker (Thailand) shows that the price for converting specific areas Ploenchit center of town past the violence of 2008 as developers, such as SIRI, Raimon Land and Central Group invested significantly for converted safety only. Future development and investment in the distribution of critical view of their business.

To protest in March this year the number of record of the events two high value placed belying air political current that has seen violence on the streets add to the opposition ‘red shirts’ in Parliament will be dissolved and the election of a new call. that

Company indicated that the purchase by SIRI’s conversion meters 3,200 square adjacent to residential diplomacy American Road Price: $ 36 million set new record for land prices in Thailand, confirmed that the site CBD will grow rapidly in value because of the lack of them.

Research published today by real estate company Binswanger Brooker (Thailand) revealed that
prices of prime plots in the central Ploenchit area of the city have risen by 88 per cent since 2007 as listed developers such as Sansiri, Raimon Land and the Central Group invest heavily to secure prime plots for future development. Major local investors are also looking to diversify from their core businesses, the report says.

In 2006, Tiang Jirathiwat Co., Ltd, a subsidiary of Central, purchased a nine rai site in front of the British Embassy for a price approaching THB1 million per square wah. This was followed by Raimon Land Park View Development Co., Ltd, a Raimon Land subsidiary, securing a prized four rai plot (the site of the 185 Rajadamri development) at a cost of approximately THB800,000 per square wah in 2007.

In 2008 Ploenchit Residence Co., Ltd, a joint venture with Raimon Land and Dubai-based IFA Hotels and Resorts, invested again, paying approximately THB1.2 million per square wah for a prime nine rai plot in Ploenchit shortly before the global financial collapse.

March 2010 saw unprecedented amounts of activity, with two high value transactions taking place. A plot a little under three rai (1,105.7 square wah) next to Wave Place on Wireless Road was bought by Thai Summit Grand Estate for THB1.2 million per square wah. The company is understood to be planning to build a hotel on the site.

Also in March, the purchase by Sansiri of a two rai plot adjacent to the American ambassador’s residence on Wireless Road for THB1.5 million per square wah set a new record for land prices in Thailand, according to the research, and confirmed that sites in the central business district of the Thai capital are rapidly growing in value due to their scarcity. Nowhere is this more apparent than in the Ploenchit district.

Binswanger Brooker (Thailand) Chief Executive Officer, Nigel Cornick, said that a limited supply of freehold land combined with high demand for central locations was driving prices up, even during the current political impasse.

He said: “There is very strong demand for compact but high-end residential condominiums in downtown locations from the domestic market, which is boosting land values as suitable plots are increasingly few and far between for developers to purchase. Some developers also plan to construct hotels on the prime plots, which further demonstrates that this is an asset class that local investors still have confidence in.”

Mr. Cornick added that prices would continue to rise sharply, and one of the reasons for the flurry of activity in recent months was due to the withdrawal of the transfer fee, stamp duty and business tax exemption on the newly revised date of May 31.

“The resale value of this category is also high as this aspect of the market matures, which is another factor drawing local investors to this product. We expect this positive outlook for these areas to very much continue in the future as values rise. It is also good news for Thailand generally as this research indicates the property market remains healthy despite the exposure Bangkok has to current political activities,” he said.

Mr. Cornick added that with land values for freehold plots increasing, there was a likely knock-on effect for leasehold sites that would also increase in value, with major benefits going to the Crown Property Bureau who have significant leasehold land holdings in prime central areas of Bangkok.

The parcel, which spans 6,312 square metres is located near Bangkok’s Ramkhamhaeng University and shopping malls.

TEE International said the area is popular for education and commerce and is well connected by transport infrastructure.

It intends to develop the site into one-bedroom and studio units targeted at middle income residents.

The group has launched two developments in Bangkok over the last two years.

It sees the rapid emergence of the middle class in Bangkok as an exciting opportunity to be addressed.

TEE International said it will fund the purchase with both equity and debt.

Source : Channel NewsAsia – 7 Apr 201