While purchasing a property in Bangkok’s central business district might cost a fortune, income-producing properties are still in demand, says the property consultancy agency CB Richard Ellis (CBRE).
A recent article by the Bangkok Post indicated that many investors are purchasing income-producing property in Bangkok’s urban districts ranging from Sathorn to Phetchaburi Road.
The Sofitel Silom hotel was sold to an associate of The Pioneer Global Group. The same associate, with a 49.5 per cent stake in the Pullman Pattaya Aisawan Resort, purchased the 469-room hotel for THB2.01 billion (US$66.3 million).
Eilidh Callum, senior economist at CB Richard Ellis said that strategically located sites in Bangkok are in demand. This year a leading real estate agency purchased a three-rai site on Sathorn Road, from the French government.
CB Richard Ellis Thailand, believes that in addition to income-producing assets, strategically located sites are also in high demand.
The Boon Rawd Brewery Company LTD, behind the Singha Corporation also purchased a nine-rai former Japanese Embassy site on New Phetchaburi Road, which it intends to develop into a mixed-use development.
Despite commercial real estate sales declining in Asia in the second quarter of this year by 52 per cent due to influencing factors such as the earthquake and tsunami in Japan and the worsening US economy, the market in the Pacific Asian countries like Thailand picked up strongly following a low start to the year.
Source: Property Report