Published on August 28, 2006 - Poor urban planning amid Bangkok condo boom: consultants

The work of real-estate professionals is not just about selling properties, as it also involves looking into how a city develops and prospers - and not just in the commercial sense - said CB Richard Ellis Thailand managing director Aliwassa Pathnadabutr.

She is concerned that too little is being done to preserve beautiful, historical parts of Bangkok, compounded by the lack of public spaces such as walkways and parks, and substandard urban planning.

"I held high hopes for the new city administration," she said. "But like many people, I am disappointed."

Responding to an article in this month's Thailand Tatler magazine, which retraced the many historical sites that have been torn down to make way for commercial development, sparking fury from many residents, Aliwassa said she also felt saddened by the lack of protection for important areas such as Sathorn.

"When I was a girl, I remember going to Suan Phlu by Sathorn Road," she said. "What stayed in my mind was how beautiful it was. It was full of big trees, large houses and canals. It was very picturesque. I am sorry I do not have any photographs to show how it was like."

Most of the big trees, large houses and canals have now completely disappeared and austerity, congested highways and glib office blocks fill the area.

Ironically, even in its current state of degradation, the area is still better off than many other sections of town such as Sukhumvit, which is ruined by mass tourism and thoughtless commercialism.

Still, the real-estate market in Bangkok continues to power ahead, with prices of prime residential homes tripling the amounts charged after the 1997/98 financial crash.

Prices have long surpassed the highs of the post-crash years, soaring above Bt120,000 a square metre last year.

Since the setting in of a dysfunctional political climate eight months ago, many realty firms have seen a fall in sales, while some projects have been forced to suspend work.

In the shake-out, CB Richard Ellis has emerged a clear winner with its leadership position in the luxury sector. The firm enjoys having the cream of the crop and represents some of the better-quality sites in town.

Its portfolio includes Millennium Residence, backed by City Development; The Met by HPL Group; Emporio by TCC Capital Land; and Pano by the Krungthep Land-Fraser group. Its office towers include Exchange Square and Supalai Grand Tower.

The improvement in the political scene since last month should signal better times ahead, she said. Most professional developers also agree that the "worst is behind us", and while prices should consolidate further, there won't be the hard landing or crash scenarios many observers were warning about.

To succeed, Aliwassa is a stickler for quality. "We are quite particular about who we take on as clients," she said. "The biggest problem in the local market is that we often see unprofessional approaches. There are many landowners who come to us to build projects on land that the family had bought years ago.

"While that is understandable, it still does not make business sense if the location is unsuitable for a commercial undertaking."

The company frequently declines to sign up with luxury projects that are located in remote, isolated places "in the middle of nowhere".

While Bangkok holds some promise as one of Asia's more popular destinations, efforts to improve its infrastructure are of paramount importance.

Concerned authorities should plan Bangkok in such a way that it ranks with the best Asian financial centres, instead of more backward ones.

Prices of prime apartments help reflect Bangkok's limitations. It is about seven times cheaper than Hong Kong, three times cheaper than Singapore, slightly lower than Shanghai and a fraction higher than Ho Chi Minh City.

And while its pollution level is slightly better than Hong Kong's industrial smog and Kuala Lumpur's seasonal haze from man-made fires in Indonesia, its chronic traffic jams, dangerous highways and deplorable urban planning have much to answer for.

Itthi C Tan
The Nation