The substantial rise in Bangkok land prices in recent years has caused the value of property projects to climb. Values of 10 billion baht are no longer unthinkable for large projects, especially mixed-use complexes with residential, retail and office components.
Land priced at 2 million baht per square wah is now the norm for good plots in the central business district (CBD) of Bangkok. Sites near the most centrally located BTS and MRT stations can fetch 2.5 million or even 3 million baht per sq w. Even outside the CBD, sellers of land close to mass transit stations are asking 1 million baht.
The higher land costs are reflected in the overall value of some of the higher-profile property developments launched in the last two years (see table). In the past, it was rare to see a condo project worth more than 5 billion baht. Now there are a handful above that mark, with some at 10 billion or more. Most of these are luxury projects, given the developers' need to recover their high land costs.
The value of mixed-use projects also reflects that the most desirable CBD sites come with sky-high selling or leasing costs. One Bangkok, launched in 2017, tops the list with a total estimated project value of 120 billion baht. On the opposite side of Rama IV Road, Dusit Central Park will be taking shape with an estimated value of 36.7 billion.
More projects are in the pipeline, but the market will be closely watching news on key sites. Details of a final project concept are being worked out for plots owned by the State Railway of Thailand (SRT) at Bang Sue, Mae Nam and Makkasan, and for residences of SRT staff close to the Bang Sue station.
Other plots owned by the Treasury Department in Bangkok are also expected to feature high-value developments. Among them, a twin-tower office complex worth 7.8 billion baht was recently announced for a site next to the Mor Chit BTS station.
Large plots owned by some developers are also being earmarked for big-ticket buildings, such as the 22-billion-baht Super Tower on Rama IX Road by Grand Canal Land, acquired last year by Central Pattana Plc. Another 51-rai site owned by BTS and Central Group not far from Central Ladprao is worth watching, as is the former British embassy site owned by Central Group and Hong Kong Land.
Surachet Kongcheep is the managing director of Phoenix Property Development and Consultancy Co Ltd.
