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7 Jun, 2010
POLITICAL VIOLENCE FAILS TO DENT CBD PRICES
THE NATION Issued date 7 June 2010
pholenchit, Sathirn and Sukhumvit remain the most popular areas
SOMLUCK SRIMALEE
THE NATION
Property market leaders have bought up land for use in the development of residential projects in the next year worth several billion baht, driving land prices in the central business district (CBD) up more than 20 per cent this year over last year, according to a survey by The Nation.
Agency for Real Estate Affairs (AREA) managing director Wasan Kongchan said the recent political strife has not had a major impact on deals to buy undeveloped land in the CBD, which continues to be collected by leading developers. They aim to use the land for residential projects for sale in the next year.
Phloenchit, Sathorn and Sukhumvit continue to be popular locations, with prices having risen between 10 and 20 per cent, while in some locations they have risen nearly 50 per cent. This compares with a 3-to 4-per-cent rise in the overall land market in Bangkok and Suburban area, he said.
For example, developer Sansiri recently spent Bt1.23 billion to buy the land housing the Spanish Embassy behind Bank of Ayudhya at the Wireless Road junction.
Meanwhile, Raimon Land has sold 2 rai on Wireless Road to Thai Summit Group for Bt1.2 million per square wah, having bought the land at Bt1 million per square wah three years ago from Tan passakornnatee.
LPN Development bought 14.8 rai of land at Ratchyothin for Bt680 million, or Bt114,845 per squarw wah, which compares to a going price of Bt95,000 three years ago - a rise of 20 per cent. The comapny also bought 4.26 rai on Rama IV at a cost of Bt255 million, or Bt149,647 per square wah, up 20 per cent on prices in the area over the same period.
Pruksa Real Estate recently bought 3 rai of land on Sathorn Road for Bt480 million, or Bt400,000 per square wah, up nearly 20 per cent from the sale price three years ago.
Meanwhile, 15 rai of land at the Stock Exchange of Thailand on Ratchadaphisek Road has been sold to American International Assurance at price of Bt430,000 per square wah, or a total of Bt1.6 million, up 43 per cent from Bt300,000 per square wah in the period. Land prices in the CBD are rising because of strong demand for residential projects in the area, where land is limited, Wasan said.
Colliers International Thailand's MD Patima Jeerapaet said the riots had not affected confidence.
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