Sansiri deal sets land price record 1.5 million baht per square wah on Wireless Road

Posted June 9, 2010 by Real Estate Thailand in Thailand Real Estate News | Comments Off

The developer Sansiri Plc has paid a record price of 1.5 million baht per square wah (four square metres) for a land plot on Wireless Road, said Patima Jeerapaet, managing director of the property consultant Colliers International Thailand.

Sansiri acquired the 823-square-wah plot, which used to house the Spanish embassy, in March.

The price surpassed the one million baht per square wah paid by Raimon Land Plc for a plot on Phloen Chit Road which it bought from Oishi Group founder Tan Passakornnatee.

Raimon surveyed and paid a deposit for the Wireless Road plot two years ago. The price then was 1.2 million baht a square wah, but the developer decided not to go through with the deal.

Mr Patima said that Suthat Na Ayudhya sold the plot to Sansiri for 1.23 billion baht. Condominiums developed on land this expensive could command 300,000 baht per square metre, he said.

Raimon has sold part of its nine-rai plot on Phloen Chit to Thai Summit Grand Estate Co, a property firm owned by Somporn Juangroongruangkit, the owner of the country’s leading auto parts manufacturer Thai Summit Group.

Mr Patima said Thai Summit bought two rai for 1.32 billion baht, or 1.2 million baht per square wah, which was transferred on March 26 just before the expiry of property tax incentives.

Many land transactions took place during the political turbulence, reflecting the strong confidence of Thai investors he said. During the first five months of the year, there were 23 land transactions with a combined sales value of about 10.58 billion baht.

The largest deal was a 9.66-rai plot on Ratchadaphisek Road owned by the Stock Exchange of Thailand. The insurer AIA purchased the land for 1.6 billion baht at an auction last month. Mr Patima said the deal set a new benchmark of 480,000 baht a square wah for land on Ratchadapisek, up from 300,000 baht.

The second largest deal was the acquisition of Sermmitr Tower on Asok Road by an individual investor from a fund. The 34,000-sq-m office and condominium sold for 1.5 billion baht.

Source: Bkk Post