Big developers pushing up price of land plots
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TOP PROPERTY firms bought land worth Bt16 billion in the last two months of 2015, and the next land deal worth at least Bt8 billion will be completed by the end of this month, a source close to the deal said.
In November, 33 rai (5.3 hectares) on Ratchadaphisek Road worth Bt9 billion was purchased, amounting to Bt681,818 per square wah (Bt170,454 per square metre).
In December, a deal for 40 rai on Vibhavadi Road near Hong Wang School was closed for Bt7 billion, or Bt437,500 per square wah, purchased by a joint venture between BTS Group Holdings and Sansiri.
This month’s deal is for 700 rai near Krungthep Kreetha Road, owned by Bangkok Land, which is negotiating for a sale worth not less than Bt8 billion with leading property firms owned by major conglomerates, the source said.
He added that the demand among big companies to buy undeveloped land was still growing as they saw potential to develop residential and commercial buildings in locations near the mass transit system.
“This year will be a difficult year for small and medium-sized property firms to do business when leading firms, especially the big conglomerates such as Singha Group, TCC Land, CP Land, and Central group, began expanding their investment in the property market last year, driving the demand for land. This is also pushing up land prices this year,” he said.
