Land prices in Soi Thonglor (Sukhumvit 55) are expected to stay at least 20-30 per cent above the official evaluation price, currently set at Bt420,000 per square wah, which will further boost the value of new condominium projects, said a land developer.
The evaluation price is being used as the reference for transactions executed during 2016-2019.
Uthai Uthai-sangsuk, Sansiri’s executive vice president of business development and condominium development division, said that the actual prices of land near BTS station are as high as Bt1.3-Bt1.6 million per square wah.
"There is little land supply for project development, particularly in the middle of the soi," he said. "This pushes up condominium reselling prices as well as rents. Renting out units are also a lucrative business for the wealthy Thais and foreign buyers particularly the Japanese," he said.
The prices of condominium projects in the soi average at Bt161,000 per square metre. The projects located on the main road are asking for Bt250,000-Bt300,000 per square metre.
Sansiri has developed four condominium projects in the area, housing 1,300 altogether with market value of more than Bt12 billion. In 2010, its Bt1.6-billion project HQ Thonglor was sold out in a day. It plans two more projects with combined value of over Bt10 billion.