by kevinyeo | Feb 6, 2018 | Bangkok Property Market Updates
Central Group and its Hong Kong partner have struck a deal to purchase the existing site of the British embassy in Bangkok for £420 million (about 18.6 billion baht), the biggest land deal in the country’s history.
The Foreign and Commonwealth Office (FCO) issued a statement to announce the deal yesterday.
According to the announcement, the 25-rai plot was sold to a joint-venture consortium of Central Group and Hongkong Land, a member of the Jardine Matheson Group.
It’s the biggest property deal in Thai history and the FCO’s biggest ever sale. The proceeds will be reinvested in the FCO’s overseas estate and will fund 30-40 modernization projects around the world.
The 25-rai plot is located in a prime location next to the Central Embassy mall near Phloenchit intersection.
Tos Chirathivat, chief executive of Central Group, earlier said the group “wants to develop a mixed-use project that links to our Central Embassy shopping project”. The project would mark the biggest investment in the group’s history.
by kevinyeo | Feb 6, 2018 | Bangkok Property Market Updates, Infrastructure & Urban Development, Investment Analysis
Knight Frank Thailand Research (KFTR) says new mass transit routes will continue to rule real estate conversations in the coming years, as there are a lot of major public transport changes happening in Bangkok in the near future.
The company says it expects heightened competition in previously less accessible zones of Bangkok, especially areas along the BTS Light Green Line Extension (Mo Chit-Kukot), MRT Blue Line Extension (Taopoon–Thapra-Hualamphong), MRT Pink Line (Kae Rai–Minburi), MRT Orange Line (Rama 9–Ramkamhaeng), and MRT Yellow Line (Ladprao-Huamak).
Rent and sale prices in those aforementioned areas are foreseen to increase substantially based on a project’s proximity to convenient transport.
“The amount of new supply launched in Bangkok is expected to mount continuously and big-name developers will be key players in the market supported by their solid capital structure, high bargaining power, and innovative amenities that focus more on experiences and future lifestyle,” KFTR said.
“While selling prices in the peripheral is expected to be stable on the back of land abundance and affordable land prices in the areas, prices for future supply in the CBD is anticipated to increase in line with land scarcity and soaring land prices.”
In 2018, more affordable units are expected to enter the market, especially those between THB 3 million to THB 5 million that will continue to draw attention from buyers in the mid-range market segment, KFTR said.
“However, developers should be cautious in starting new projects in the lower-end to middle market segments along new mass transit routes in the suburbs to cushion against the risk of oversupply.
“On the demand front, demand across the market will continue to be driven upwards by domestic home buyers and expatriates. Moreover, one trend that is helping drive demand is an influx of foreign buyers, especially those from China who are looking for a safe place to store their wealth.”
