By Andrew Batt:
Thailand’s property market has seen developers slowing their acquisitions of low-rise housing development in areas which were submerged during last year’s floods.
The Q1 2012 Thailand Investment Market View report, published by CBRE Thailand, noted that developers have also become more selective about their mid-market condominium acquisitions as some still have projects to launch that were delayed by the flooding in November and December.
CBRE Thailand said it expects acquisitions for downtown and mid-town sites to increase once the delayed projects have been successfully launched.
James Pitchon, Executive Director of CBRE Thailand, said: “Developers continue to compete to buy downtown sites and there is strong interest from domestic investors in income producing buildings – but few are being offered for sale.”
One major land transaction that occurred during the first quarter saw listed developer Sansiri purchase a 40-rai (16-acre) land plot at Bangna Trad (km 10) for THB800 million (US$25.81 million) – or THB50,000 (US$1,588) per sq wah (four sq m). Media speculated the plot may be developed into a single detached housing project under the company’s Burasiri or Setthasiri brand.
The first quarter also saw the sale of Mercury Tower in the prime Wireless Road – Ploenchit area. The Singapore-based Real Estate Capital Asia Partners (RECAP) property fund paid a total of THB1.2 billion (US$38.1 million) to former owners Lehman Brothers, and plans to spend another THB300 million (US$9.53 million) to remodel the retail component of the building which will open in March 2013.
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