How former embassy sites helped reshape Bangkok’s prime property market
Former embassy sites in prime central Bangkok locations, including those of the UK, Japan and Australia, have been acquired for major property developments, pushing land prices sharply higher.
Embassy land in Thailand has become a prime target for investors, not only because many plots are located in high-potential central business districts, but also because they carry a historical legacy for future generations to remember.
In recent years, several embassy land sales in Thailand have significantly boosted the value of surrounding areas.
Surachet Kongcheep, head of research and consultancy at Cushman & Wakefield Thailand, said that looking back at embassy sites that have already been sold and redeveloped into major projects in the city centre, the trend began in 2007.
The British Embassy sold a section of land of about 9 rai along Phloenchit Road, with Central Group winning the auction at around 950,000 baht per square wah, or about 3.4 billion baht in total. The site has since been developed into the Central Embassy project.
Later, in 2017, the British Embassy opened bidding for its remaining land plot of about 23 rai. Central Group again won the auction at around 2.2 million baht per square wah, or roughly 19 billion baht in total. The site is currently being developed into a mixed-use project in partnership with a Hong Kong investment group.
In 2011, the Japanese Embassy announced an auction for an approximately 11-rai plot on the corner of Asok and Phetchaburi roads. Boon Rawd Brewery won the bid at about 450,000 baht per square wah, or around 1.6 billion baht in total. The site is now home to Singha Complex.
In 2017, the Australian Embassy put a 7 rai, 3 ngan plot on Sathorn Road up for auction, and Supalai won the bid at 1.45 million baht per square wah, with the total deal valued at around 4.6 billion baht. The land was later developed into the Supalai Icon project.
In 2011, the Alliance Française site, covering about 4 rai on Sathorn Road, was also auctioned. Hong Kong-backed HKR International won the bid at around 800,000 baht per square wah, with the total value estimated at about 1.2 billion baht.
Most recently, the Netherlands Embassy site, covering more than 20 rai (19 rai, 3 ngan and 26.6 square wah) on Wireless Road, with additional access via Soi Ton Son, is expected to command an exceptionally high price, given the scarcity of prime land in the city centre and continued strong demand.
