Mixed-use projects eyed in CBD
Many of the bigger plots are owned by state enterprises
Although available land for the development of residential projects in the central business districts (CBDs) of Bangkok is limited, some locations still have large plots that can be developed for mixed-use projects.
Most of these bigger plots are owned by state enterprises, some of which plan to open bidding among developers, assuming they can first clear any difficulties with their existing tenants.
If all of these plots were to be opened up for development, there would be an estimated combined investment of Bt1 trillion, would create new landmarks and a new residential area in the CBDs.
For example, the State Railway of Thailand plans to open bidding for development of the Makasan complex on 500 rai (50 hectares) of land worth Bt300 billion, located close to the Airport Link's Makkasan station.
The project comprises an exhibition hall, retail area, entertainment complex, office building, service apartments and a luxury hotel.
The Port Authority of Thailand hopes to develop 223 rai in Khlong Tae for a mixed-use project, with an office building, logistics and warehouse facilities, and a shopping complex. The more than Bt100-billion project has been in the offing since 2010, but development has been delayed due to opposition from the tenants at Khlong Tae market. Despite this problem, the plan remains part of the port's business strategy.
Meanwhile, the Crown Property Bureau will reopen bidding to develop 80 rai at the Armed Forces Academy's Preparatory School on Rama IV after Central Pattana, which won the earlier contact to develop the land, cancelled the deal due to a project delay.
The main idea of the bureau is to develop the area as a mix-used project comprising office, retail and residential buildings. Others locations for potential development are detailed in the accompanying graphic.
Sopon Pornchokchai, director of the Agency for Real Estate Affairs, said the areas in question were prime locations with a combined land value of more than Bt440 billion.
If the Bangkok Metropolitan Administration revised the regulation about building high-rises in all of these locations, considerable project value would be created and there would also be greater efficiency in the use of land in central Bangkok, he said.
While most property firms are launching residential projects located close to the capital's mass-transit rail system, future office and shopping complexes in the CBDs would also attract more housing developments.
"When new office or retail complexes open, those areas will be new destinations for developing residential projects in the future," said Supalai managing director Atip Bichanond.
When the company is considering a new area for one of its projects, it ensures the location has a working area, is located near to mass transit and also has an entertainment and shopping area, especially a shopping complex, he said.
If any of the city's CBDs were to get a new complex that included an office area, it would provide a welcome challenge for property firms looking to develop a residential project in an entirely new locality.