According to property experts say, although Land prices have continued to rise, the developers mostly seek plots close to Skytrain, MRT for projects and by over 20% in locations close to existing and planned mass-transit routes and more than doubling in some areas.
Prices have consistently risen since the Treasury Department's implementation of revised appraisal values in July last year as demand to buy land for developing both residential and commercial projects increases, especially in locations near to the current mass-transit system and planned route extensions.
Ananda Development having set up a joint-venture firm with Mitsui Fudosan Residential, plans to transfer know-how from the Japanese partner in order to develop its construction process and reduce costs by at least 20% in the next three years.
The listed company is also studying the development of a rental-income business, including the office and retail segments, and may launch a real-estate investment trust (REIT) within the 2014.
Bangkok may become one of the prime destinations for developers in Southeast Asia due to the city’s inexpensive office spaces. Real Estate Industry experts expect a steady increase in demand for Grade A rent in Bangkok.
“No new Grade A supply was completed in Bangkok during the previous quarter,” Nithipat Tongpun, executive director of office services at CBRE Thailand, told The Nation.” Grade A rents will continue to rise on the back of limited supply and steady demand but the growth rate has now passed the peak.”