Rush to launch new projects sends land prices soaring
Phloenchit and Ratchaphruek have become Bangkok’s prime locations for residential developments, with most property firms launching new projects in these areas.
Land prices in the two locations have also skyrocketed by 20 to 30 per cent in the past two years, according to property experts and a survey by The Nation.
The Phloenchit area, with Phloenchit road from Rajdamri to Wireless road as its centrepiece, has property developers launching both residential and commercial projects, including retail space, office buildings and hotels worth nearly Bt40 billion.
They include a residential and office development by Noble Development worth Bt14.5 billion; an integrated building called Venture Park with a market value of Bt5 billion, being developed by Univenture; and Central Pattana is investing Bt14 billion to develop a shopping centre called Central Embassy.
Sansiri is also planning a luxury condominium in the Phloenchit area that will not be complete for another three or four years. It’s believed its units will cost as much as Bt300,000 per square metre.
Noble Development’s president Thongchai Busrapan said Phloenchit would become a new city centre for Bangkok. Developments being planned will combine residential areas, office space and shopping centres. It will be Bangkok’s best location in terms of a working and living lifestyle, he said.
Currently, there are about 1,000 condominium units available in the Phloenchit area with rents averaging Bt40,000 per month for a one-bedroom unit with 40 to 45 square metres of floor space.
Univentures’ managing director Thanapol Sirithanachai said Phloenchit had all the functions to serve a city lifestyle. It was close to all forms of transport, including the Skytrain’s Phloenchit station and the expressway. As a result most property firms had found land to develop residential and other projects in the area.
With strong demand for residential and commercial buildings, land prices in the Phloenchit area are now higher than those in other central areas, at about Bt1.5 million per square wah (four square metres).
The most recent land deal in the area was Sansiri’s purchase of a 2-rai plot for Bt1.2 billion.
The price of land has made Phloenchit suitable only for high-rise developments, Thongchai said.
Meanwhile, Ratchaphruek Road has become the city’s most popular location for low-rise residential developments, especially luxury single-detached houses costing more than Bt5 million each.
A survey of residential projects in the area by The Nation found a number of luxury projects priced at more than Bt5 million per unit, developed by the top 10 listed property companies, such as Land & Houses, Sansiri, Quality Houses, SC Asset Corporation, Property Perfect, and others.
Most of them have seen sales averaging 30 to 50 per cent of project value since being launched last year.
SC Asset’s chief operating officer Kree Dejchai said demand for luxury residences had continued to grow since last year, with half of the buyers paying in cash.
Supalai’s managing director Atip Bijanonda said his company’s latest luxury project – Supalai Montara – was between Ratchaphruek Road and Buddha Mondhol Soi 1. Supalai saw strong demand for luxury residences in this location. The project has starting prices of Bt8 million.
Because of the strong demand, the search for land by developers has driven land prices up from an average of Bt80,000 to Bt100,000 per square wah to between Bt100,000 and Bt300,000 (Bt25,000 to Bt75,000 per square metre), depending on proximity to the main road.
Source: The Nation