Thai property groups sell land to boost liquidity and cut costs

Thailand’s prolonged property slowdown is prompting major developers and large landowners to reassess their land banks, with billions of baht worth of plots and other assets being put up for sale to generate cash, reduce holding costs and streamline portfolios.

The shift comes as global economic uncertainty, slower domestic growth and a deeply subdued property market continue to weigh on purchasing power. At the same time, the cost of holding undeveloped land, particularly liabilities under the land and building tax, has added pressure on companies with sizeable land portfolios.

The trend is increasingly visible, with vacant land being advertised on social media and property websites, as well as through signs placed directly at the sites. Many of the plots have no immediate development plans, suggesting that the sales are not solely about raising liquidity but also about reducing costs and disposing of assets that are not generating income.

The approach to land ownership among property developers is also changing. Instead of accumulating large land banks for projects that may be developed years later, companies are becoming more selective, focusing on locations with established demand and the potential for near-term development.

In a difficult market, owning large amounts of land is therefore no longer necessarily an advantage. Having sites in the right locations and being able to turn them into revenue more quickly are becoming increasingly important to the management of property businesses.

Against this backdrop, several major Thai property companies are putting large land holdings on the market to strengthen cash flow and reduce the cost of carrying unused assets.

Property Perfect offers six prime plots

Property Perfect Plc has advertised six land plots on Facebook, covering about 160 rai, with a combined value of more than 5 billion baht.

The properties comprise:

• Bang Rak Noi–Tha It: A 46-rai, 54.6-square-wah plot offered at 2.76 billion baht, equivalent to about 58.8 million baht per rai. It is around one minute from MRT Bang Rak Noi–Tha It station.
   
• Ratchadaphisek 17: A 3-rai, 1-ngan, 69.5-square-wah plot priced at 755 million baht, averaging around 220.5 million baht per rai. The site is about 150 metres from Ratchadaphisek Road.
   
• Charan Sanit Wong–Tha Phra: A 3-rai, 1-ngan, 42.7-square-wah plot with an asking price of 670 million baht, or roughly 215.6 million baht per rai. It is located around Charan Sanit Wong Soi 9/1.
   
• Ratchaphruek–Pathum Thani: A 41-rai, 16.8-square-wah plot priced at 500 million baht, averaging around 12.2 million baht per rai. The site is near Soi Wat Phrai Fa on Ratchaphruek Road.
   
• Ram Inthra–Outer Ring Road: A 36-rai, 1-ngan, 16.4-square-wah plot priced at 440 million baht, equivalent to around 12.1 million baht per rai. It is about three minutes from Kanchanaphisek Road, or Bangkok’s Outer Ring Road, and lies alongside a planned road or road-extension alignment linking Rattanakosin Somphot Road with Nimit Mai Road.
   
• Lam Luk Ka: A 30-rai, 11.6-square-wah plot offered at 245 million baht, averaging about 8.2 million baht per rai. It is approximately 2.5 kilometres from BTS Khu Khot station and about 20 minutes from Don Mueang Airport.

All six sites have access to rail services or major transport networks and are considered suitable for housing developments, community malls or mixed-use projects.

Pruksa puts 112-rai Lat Krabang site on market

Pruksa Holding Plc has also put a large plot in the Chalong Krung area of Lat Krabang up for sale. The site covers 112 rai and 85.3 square wah and can be subdivided. It is being offered at 4.64 million baht per rai.

The land had been accumulated for the development of a housing project intended to benefit from growth in eastern Bangkok, including nearby educational institutions and Suvarnabhumi Airport, as well as transport connections to central Bangkok and areas outside the city.

The company is seeking to sell the land to generate cash flow.

Bangkok Land seeks THB5.94bn for Phetchaburi plot

Bangkok Land Plc, the developer behind the Muang Thong Thani complex in Nonthaburi, is meanwhile offering a major site on New Phetchaburi Road.

The nine-rai plot is next to Phetchaburi Soi 35, close to the Pratunam and Asok areas. The entire site is being offered for about 5.94 billion baht, equivalent to 1.65 million baht per square wah.

The sale forms part of Bangkok Land’s asset-management strategy as it focuses its investment on Muang Thong Thani.

The location is also expected to benefit from progress on the western section of the MRT Orange Line between Bang Khun Non and Thailand Cultural Centre, improving accessibility and supporting land values in the Phetchaburi-Pratunam area.

Wasan Kongchan, managing director of Modern Property Consultant Co Ltd and president of the Real Estate Sales and Marketing Association, views the location as a high-potential central Bangkok site close to rail transport.

He sees scope for a major mixed-use development, hotel or wellness project because the surrounding area already contains a concentration of businesses, condominiums and hotels.

BJC offers 33 assets worth THB11.73bn

Berli Jucker Plc (BJC), part of the business group associated with tycoon Charoen Sirivadhanabhakdi, has announced plans to restructure its property portfolio by selling 33 assets across Thailand with a combined value of 11.73 billion baht.

The portfolio includes vacant land, warehouses, storage facilities, factories, commercial buildings and properties occupied by some Big C branches. The assets are spread across potentially valuable locations in Bangkok and other provinces.

The disposals are intended to streamline the portfolio, lower costs associated with the land and building tax, improve capital management and increase liquidity within the Big C-BJC group. BJC expects the sales to generate about 3 billion baht in profit.

Among the most notable assets is a former factory site in Rat Burana covering about 26.42 rai and valued at 2.57 billion baht. It is the largest individual property by value in the portfolio highlighted in the report.

Another site on Bang Na-Trat Road at kilometre 45 includes more than 82 rai of land, warehouses and dormitory buildings, with an asking price of 827 million baht.

A further Bang Na site at kilometre 18.8 covers more than 53 rai and is priced at 775 million baht. The site is in an industrial and logistics area.

Land and buildings covering more than 15 rai at Nava Nakorn Industrial Estate are offered at 144 million baht.

Properties occupied by eight Big C branches are also included, covering Udon Thani 2, Lop Buri, Chumphon, Sa Kaeo, Maha Sarakham, Yasothon, Warin Chamrap and Dan Khun Thot. Prices for these properties range from about 250 million to 580 million baht.

The wave of disposals illustrates a broader shift in Thailand’s property market: large land portfolios are increasingly being reassessed as companies prioritise liquidity, lower carrying costs and more efficient use of capital.

Source: Thansettakij