Interest grows in large state land plots

Interest grows in large state land plots

While smaller prime land plots in central Bangkok are becoming ever scarcer, numerous large ones still exist elsewhere in the city, ready for new projects or redevelopment.

A few of these sites are in private control, but many are owned by state or quasi-state enterprises or agencies.

With increased political stability and a strong economic outlook, developer interest in these large plots will likely grow, according to Jones Lang LaSalle (JLL), the property services firm.

"After Bangkok's real estate boom in the late 1980s and early 1990s, developer interest in large public sites virtually disappeared for several years as the Asian financial crisis curtailed economic activity and new development," said Dan Tantisunthorn, the head of research and consultancy.

"The prospect for such large sites was sparked by economic recovery in the middle of the last decade, with the Suan Lum Night Bazaar site owned by the Crown Property Bureau representing the last leasehold site of more than 50 rai to be publicly tendered in central Bangkok in 2005.

"However, an uncertain political environment and global financial crisis again put these projects on the back burner. The return of a more stable political environment over the past year and a half and strong economic growth are again raising the prospects for these types of sites to come back to the market."

he said several of these large public sites connect to existing mass transit infrastructure.

Transit-oriented development has evolved organically in Bangkok, with businesses, retailers and residents being drawn to mass transit stations.

This lends large plots strong potential for development or redevelopment.

Some of the most viable sites include the Crown Property Bureau's Lumpini and Ratchadaphisek sites, the State Railway of Thailand's Makkasan and Mae Nam depots and the Port Authority's Klong Toey riverside site.

As a result, various stakeholders in these plots have continued to evaluate the process for bringing development sites to market.

However, despite strong locational advantage, JLL warns that caution must be exercised by developers.

Master planning should account for the amount of new supply that can be introduced to the market and a particular catchment over a given period of time.

"Modern cities around the globe are looking to maximise the use of scarcer prime land resources. Bangkok is no exception," said Mr Dan.

Do you like the content of this article?
COMMENT