The living behavior of Thai people has changed from living in suburbs to living in the city as the land price has astoundingly skyrocketed and condominiums’ are nearly 200,000 baht per square meter.
According to Century21 Realty Affiliates Company’s record in the past 3 years, prices of real estate in the city like Bangkok have increased twofold. The highest selling price of land is 1.5 million baht per square wah ( foursquare two-meters ), in business areas such as Wireless Road, Ploenchit, and Ratchadamri. The prices of property in those areas also have a tendency to rise so long as entrepreneurs show interest in buying them.
The Century21 said that there are not that many pieces of land left in those prime areas, and that about 10 plots of land are now up for sale.
Those 10 plots alone could be worth up to 10.5 billion baht altogether, and the offered price could possibly be as high as 1.5 million baht per square wah, which is the highest amongst pieces of property in the Wireless Road area; whereas the land the in Ploenchit and Ratchadamri zones could be worth even more.
The highest asking price set by the land owners is 1.7 million baht per square wah, but so far no one has made any offer for it. However, if the property market continues to be more intense and competitive, it is expected that the bidding price will be even higher than the 1.7 million baht asking price.
The CEO of Century21 Realty Affiliates Company added that there is a speculation on the land in the central area of the city, saying the price will easily reach 2 million baht per square wah, when ASEAN Economic Community is formed in 2015. Foreign investors will want to get their hands on those pieces of real estate in prime areas. Thailand, as the country that connects the 3 regions– South Asia, East Asia, and Southeast Asia– has what it takes to be the center of the ASEAN economy.
Additionally, the value of land has recently appreciated by 30-40 percent. As a result, land owners have divided the property into smaller parcels to make them more affordable to prospective buyers, given their pay raise can not catch up with the land prices.
The increase in the prices of land has in turn led to the rise of high-end condominium prices, which have risen from 150,000 baht to 180,000 baht per square meter, leading to a slowdown in sales, given the purchasing power of buyers does not the increase as quickly as condominium prices.
Instead of engaging in condominium price war, developers are now focusing more on interior design as condominium features, functions, and facilities have a huge influence on consumers’ decisions.
Managing Director of the Century21 Realty Affiliates Company said that he expects condominium prices to move up to 170,000-200,000 baht per square meter at the end of this year, while a typical condo will be downsized to as tiny as 20 square meters or even smaller. At this rate, people with low or middle incomes won’t be able to afford it and forced to live outside the city where property prices are lower and more affordable.