The land at the corner of Sarasin–Lumphini is considered the most expensive in Thailand. Sansiri Company recently purchased land there at a record price of 3.9 million baht per square wah. The company is not worried about the impact of COVID-19, as they focus on long-term demand instead.
The location was previously home to the “MBK Life” building, which needs to be demolished for a new development. Private land in this area is very limited, as most belongs to the government or the monarchy. Due to high competition, strong negotiation is required.
This location is excellent. It is close to the BTS Skytrain and Lumphini Park, which makes it attractive to foreigners. The area offers privacy. Once COVID-19 ends, it is expected that foreigners will return. Therefore, owning land here gives a strong advantage.
With land priced at 4 million baht per square wah, developers plan to build condominiums that can sell for 400,000–600,000 baht per square meter. Although expensive, this is considered a worthwhile investment because of the high land value. The corner of Sarasin–Lumphini is truly prime “golden land.”
In the coming years, the price of land in the city center may increase to 5–6 million baht per square wah. Mr. Wason Khongchantr, an executive at Modern Property Consultant, confirmed that this is a clear trend. However, the increase depends on buyer demand and the COVID-19 situation.
As land prices rise, old buildings become less valuable. This leads to demolition and redevelopment. A good example is the old Dusit Thani Hotel on Silom Road, which is being replaced by a mixed-use project. Another example is the former British Embassy land at Witthayu–Phloen Chit intersection. Central Group bought this land two years ago for 19 billion baht, or 2.1 million baht per square wah. At the time, this was seen as a very high price.
Shortly after that, land prices near Chidlom BTS station and Soi Langsuan rose to 3.1 million baht per square wah. This shocked the real estate industry when SC Asset won the bid and built a luxury condominium called “Scope Langsuan,” which sells for 200,000 baht per square meter, or 38–100 million baht per unit.
Currently, the most desirable areas in Bangkok are Siam Square, Chidlom, Phloen Chit, and Nana — all close to the Skytrain. Land in these areas now costs around 3 million baht per square wah and is expected to rise to 3.3 million baht per square wah next year. This is equal to 825,000 baht per square meter. The land price will depend on land usage and infrastructure development.
In conclusion, land prices in central Bangkok will continue to rise. Land priced below 3 million baht per square wah will become very rare, unless the owner urgently needs to sell.
Date: October 13, 2020
For more information and reference, please click here
https://www.thansettakij.com/property/452589
