The thirst of residential projects in central Bangkok is ensuing a hike in land values.
Land values in Bangkok’s CBD remain on an upward trend. According to research, values in 2016 within this area increased by 6.4 percent. A pattern that is not expected to slowdown anytime soon as land becomes increasingly scarce. This is ensuring the values remain high especially between Siam and Asoke. Here landowners are pricing their land between THB 2 and 2.5 million per square wah mark as result.
However the last deal to reach figures close to this was in 2015. The site achieved THB 1.91 million per square wah on Childlom Road. Situated in one of Bangkok’s most prestigious addresses. Now a luxury condominium by SC Asset Corporation Plc sits on the site achieving an impressive average sale price of THB 350,000 per square metre demonstrating the sheer strength of the high end of the residential market. This is spurring on developers snapping up remaining land that is ripe for development.
The biggest increase in land values for 2016 was an impressive 27 percent. The area that achieved this was near the Sukhumvit-Asok Road areas simply achieved due to a lack of supply.
As land values are forecast to increase by four percent this year there expected to be more attention to other areas of the city. Areas to watch are on Rama IV between the intersection of Sathon to Sam Yan due to two new projects within the vicinity. On Rama IV land values are between THB 400,000 to 500,000 per square. A figure that it is expected to reach THB 1 million due to the extension to the mass transit network with the Grey Line. This should help to push demand out of the traditional prime areas of Bangkok strengthening other pockets of the city.