Interest evergreen for prime real estate

Pricey Bangkok plots still in demand

- KANANA KATHARANGSIPORN

Despite a 41% plunge in the total value of land transactions nationwide - the lowest in 15 years and occurring during an economic slowdown - land prices in Bangkok's central business district (CBD) continued to climb, with Sukhumvit recording the sharpest increase at 10%.

According to property consultancy Colliers Thailand, while the economy lost momentum, land values in Bangkok keep rising, reflecting owners' confidence in the long-term appreciation of their assets.

"Landlords in the capital, particularly in CBD areas, still view their land as highly valuable," said Phattarachai Taweewong, research and communication director at Colliers Thailand. "We have not seen any indication of price reductions."

He said some plots in prime downtown locations are now priced at more than 4 million baht per square wah, yet they continue to draw strong interest from developers eager to secure rare freehold sites within the city's core.

A record-breaking transaction recently occurred on Sarasin Road, where SETlisted developer Sansiri acquired a plot for 3.9 million baht per sq w - the highest price recorded in Thailand.

Following that deal, asking prices in nearby areas such as Wireless Road climbed to 4 million baht per sq w, highlighting renewed confidence in Bangkok's most coveted zones.

Chidlom has become the secondmost expensive area, with asking prices at around 3.2 million baht per sq w after a transaction took place last year priced at 3 million baht per sq w.

The neighbouring Ploenchit area also remains in demand, with offers nearing 3 million baht per sq w, supported by limited supply and sustained interest from luxury developers.

In the Sukhumvit area, land prices have been rising by around 10% annually, with most plots along the main road offered at 2.5-2.9 million baht per sq w. The latest record was set by a Thong Lor plot that recently changed ownership at 2.86 million baht per sq w.