CBD Land Prices Declining A Sheer 20-30%
Land prices in Bangkok's central business district (CBD) has by now started to decrease 20-30% due to concentrated demand, Sahatchai Kwancheun, vice president of property firm Harrison, said recently.
He said the most recent deal the company finished prior to New Year's was the sale of a few land on Silom Road for Bt500,000 a square wah, instead of a 28.57% fall from Bt700,000 a square wah at the beginning of 2008.
The Sukhumvit City Resort condominium project in Sukhumvit Soi 11 has also been enforced to lower its cost, from Bt90,000- Bt79,000 a square meter.
Even though demand for undeveloped land and housing projects continues to rise, investors are postponing their purchases, for the reason that most consider land and apartments in the Kingdom, particularly in the CBD, will drop 20-30% once the global crisis begins in reality affecting the local economy, Sahatchai said.
He said investors started waiting to notice what would take place in 2008's final quarter, even though a few plan to start investing in early 2009, particularly those from the Middle East. Singaporean investors have by now started shopping for housing projects.
Prime business localities have seen prices falling 20-30% for undeveloped land and 15-20% for condominium projects.
He said land and apartment prices on Sathorn, Silom and lower Sukhumvit roads were also declining, however just 10-20% for undeveloped land and 10-15% for apartments, because of inadequate supply in those locations.
Harrison will auction off 31 plots of land and building projects of value Bt6 billion this month, together with undeveloped land, hotels and resorts, and serviced and normal apartments, both in Bangkok and upcountry.
“We want to hold this auction to increase our sales and encourage the property market in the first half of 2009, mainly with asset prices now just starting to decrease 10-20 % from 2008,” Sahatchai said.
Investors can discover a number of great deals in the market now compared with 2008, he said, adding that the company anticipated earnings of Bt1-1.5 billion from joint assets of value Bt6 billion in the auction.
He said the most recent deal the company finished prior to New Year's was the sale of a few land on Silom Road for Bt500,000 a square wah, instead of a 28.57% fall from Bt700,000 a square wah at the beginning of 2008.
The Sukhumvit City Resort condominium project in Sukhumvit Soi 11 has also been enforced to lower its cost, from Bt90,000- Bt79,000 a square meter.
Even though demand for undeveloped land and housing projects continues to rise, investors are postponing their purchases, for the reason that most consider land and apartments in the Kingdom, particularly in the CBD, will drop 20-30% once the global crisis begins in reality affecting the local economy, Sahatchai said.
He said investors started waiting to notice what would take place in 2008's final quarter, even though a few plan to start investing in early 2009, particularly those from the Middle East. Singaporean investors have by now started shopping for housing projects.
Prime business localities have seen prices falling 20-30% for undeveloped land and 15-20% for condominium projects.
He said land and apartment prices on Sathorn, Silom and lower Sukhumvit roads were also declining, however just 10-20% for undeveloped land and 10-15% for apartments, because of inadequate supply in those locations.
Harrison will auction off 31 plots of land and building projects of value Bt6 billion this month, together with undeveloped land, hotels and resorts, and serviced and normal apartments, both in Bangkok and upcountry.
“We want to hold this auction to increase our sales and encourage the property market in the first half of 2009, mainly with asset prices now just starting to decrease 10-20 % from 2008,” Sahatchai said.
Investors can discover a number of great deals in the market now compared with 2008, he said, adding that the company anticipated earnings of Bt1-1.5 billion from joint assets of value Bt6 billion in the auction.
Labels: Bangkok's central business district, condominium project, Property Firm
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