UK embassy land sale: Bangkok land value skyrockets

UK embassy land sale: Bangkok land value skyrockets

The British embassy is shopping for buyers for the rest of its historic Wireless Road land, 23 rai with an estimated value of 18 billion baht-plus. (Photo by Somchai Poomlard); Inset: The Central Embassy built on a 9.5 rai plot the British Embassy sold a decade ago.
The British embassy is shopping for buyers for the rest of its historic Wireless Road land, 23 rai with an estimated value of 18 billion baht-plus. (Photo by Somchai Poomlard); Inset: The Central Embassy built on a 9.5 rai plot the British Embassy sold a decade ago.

At whopping price of 2 million baht per wah (2 square meters), huge project with giant overseas partners likely on land.

BANGKOK PROPERTY

UK embassy land sale highlights skyrocketing price of Bangkok land

30/08/2016
Kanana Katharangsiporn

Land plots in bustling prime locations in Bangkok remain very appealing.

The British embassy expected to shed its 23-rai property on Wireless Road for more than 18 billion baht.

The embassy is sounding out developer interest through CBRE (Thailand), which was assigned as the sole agent for the plot, according to sources in the property sector who asked not to be named.

"The embassy asked CBRE to survey whether we would be interested in buying the plot and what development it should likely be," one of the sources said.

A petition to Save the British Embassy Bangkok has popped up at Change.org, but has drawn little support.

PRICE OF LAND: 2 MILLION BAHT PER WAH OR MORE 

The price of the plot, which serves as the embassy's head office, is estimated at more than 2 million baht a square wah.

A nearby land plot was bought last year for 1.91 million baht a square wah by SET-listed SC Asset Corporation.

"At that price it's going to be a huge project development, which only large developers or those with overseas giant partners can do," another source said.

The latter source's company was among the large developers that sat down with CBRE last week to discuss the plot.

A mixed-use development is the most feasible outcome for the plot because of its large size and land cost, the source said.

DECADE AGO: 950,000 BAHT PER WAH

A decade ago the British embassy opened a bid for a land plot sized 9.5 rai on Phloenchit Road next to its current head office.

The winner was Central Group of Companies with a price of 950,000 baht per square wah.

Central Embassy is currently situated on the plot of land.

CURRENT RECORD VALUE: 2.2 MILLION BAHT PER WAH

Prices for land in prime locations have risen continuously over the last 10 years.

The latest deal struck by SET-listed Ananda Development Plc broke the record for the highest price per sq w when it paid 2.1-2.2 million baht for a one-rai site on Rama IV Road near Sri Fueng Fung Building.

The plot was the former location of the Citystreet food court owned by Beauty Gems Group.

Despite the small size of only one rai, it is feasible to develop a high-rise building with an automated parking system, which would save space instead of having a traditional car park.

A source from Singha Estate Plc, the SET-listed property arm of Boon Rawd Brewery Co, said it had heard about the report but the company was not invited to take part in last week's meeting.

EMBASSY WOULD NEITHER CONFIRM, NOR DENY REPORT

A British embassy spokesperson would not confirm or deny the report, saying only that the embassy keeps its diplomatic estate under review to ensure that it provides value for the British taxpayer and effectively represents British interests.

"We will continue to have a fit-for-purpose embassy that supports the UK's impact and influence in a leading Asean country which is a key partner for the UK in security and prosperity terms," he said.

Phanom Kanjanathiemthao, managing director of property consultant Knight Frank Chartered (Thailand), has said that despite the looming land and buildings tax, land prices in Bangkok's prime locations are expected to continue rising over the next year.

"The new tax is unlikely to be so high that landlords want to avoid paying it or sell their land," he said recently.

"It is worth keeping the land as the price will appreciate in the future."

ANANDA DENIES PURCHASE: NOT A LAND SPECULATOR

Meanwhile, Ananda Development issued a statement on Tuesday afternoon denying having bought the plot at a whopping 2.2 million baht per sq wah.

CEO Chanond Ruangkritya said the company had no policy to buy expensive land plots as it had maintained its goal of developing projects that meet the requirements of customers.

He said the company had never manipulated land prices.

As the purchasing power is weak, it would focus on developing projects at reasonable prices.

http://www.bangkokpost.com/news/special-reports/1073920/uk-embassy-land-sale-put-at-b18bn

Learn from listening

Click play to listen to audio for this story, or download to save the file
: :

Vocabulary

  • according to (prep): as stated or reported by somebody/something - ตามคำบอกเล่า, ตามรายงาน
  • agent (noun): a person or company that buys or sells something for someone else - ตัวแทน
  • appeal: a quality that causes someone to like or want something - ความดึงดูดใจ, ความน่าสนใจ, ความเย้ายวน
  • appreciate: increase in value - ค่าเพิ่ม
  • asset: something owned by a person, company etc., particularly money and property - ทรัพย์สิน
  • assign: to give someone a job to do - มอบหมาย, สั่งงาน
  • automated (adj): done by machines or equipment instead of people - ปฏิบัติการหรือควบคุมโดยขบวนการอัตโนมัติ
  • bid: an offer to buy or provide something at a specific price - การประมูล, การให้ราคา, การเสนอราคา
  • bustling: full of busy activity - อึกทึกครึกโครม
  • car park: parking lot a place where motor vehicles are parked - ลานจอดรถ, ที่จอดรถ
  • consultant: a person who knows a lot about a particular subject and is employed to give advice about it to other people - ผู้ให้คำปรึกษา
  • continue: happening or existing for a period of time without interruption - ซึ่งติดต่อกัน, ซึ่งต่อเนื่องกัน
  • continuously: happening or existing for a period of time without interruption - ซึ่งติดต่อกัน, ซึ่งต่อเนื่องกัน
  • corporation: a large business company - บริษัท
  • current: of the present time - ปัจจุบัน
  • currently: at this time; now - ในปัจจุบัน
  • deal (noun): a formal agreement, especially in business or politics - ข้อตกลง, การตกลงซื้อขาย, การซื้อขาย
  • decade: a period of ten years - ทศวรรษ, ระยะเวลา 10 ปี
  • deny: to say that something is not true or does not exist - ปฏิเสธ
  • despite (prep): used to show that something happened or is true although something else might have happened to prevent it; used to show that somebody did not intend to do the thing mentioned - ถึงอย่างไรก็ตาม, ทั้ง ๆ ที่
  • developer (noun): real estate developer, a person or company that builds new "real estate developments" including buildings, houses, shopping centers, etc - นักพัฒนาที่ดิน
  • development (noun): a piece of land with new buildings on it - บ้านจัดสรร
  • development: the process of using an area of land, especially to make a profit by building on it, etc - การพัฒนา
  • diplomatic: relating to relations between countries - เกี่ยวกับการทูต
  • discuss (verb): to talk about something with somebody, especially in order to decide something - สนทนา, โต้ตอบ
  • effectively: producing the result that was intended - ได้ผลดี
  • embassy: a building where a group of officials work who represent their government in a foreign country - สถานทูต
  • ensure: to make certain that something happens or is done - ให้การยืนยัน, รับรอง, ให้ความมั่นใจ
  • estate (noun): a large area of land, usually in the country, that is owned by one person or family - ที่ดิน
  • estimated: thought to be a particular amount, size, etc. based on a guess or the best information available - ประมาณการ
  • expect (verb): to think or believe that something will happen or that somebody will do something - คาด, คาดว่า, คาดการณ์
  • expensive (adj): costing a lot of money - แพง
  • feasible: that is possible and likely to be achieved - ซึ่งเป็นไปได้
  • focus: to give attention, effort, etc. to one particular subject, situation or person rather than another - เพ่งความสนใจ
  • food court: a place to eat with many small vendors selling food, coupons used to buy food -
  • former: of or in an earlier time; before the present time or in the past - อดีต, แต่ก่อน
  • goal: aim; purpose - เป้าหมาย จุดมุ่งหมาย
  • group (noun): a business group, a large company that owns other companies -
  • head office (noun): the place where an organisation or company has its main offices - สำนักงานใหญ่
  • high-rise: a building is very tall with many floors or levels - อาคาร ซึ่งมีหลายชั้น
  • huge: very large - ใหญ่โต
  • impact (noun): an effect or influence - ผลกระทบ
  • influence: the power to have an effect on people or things - อิทธิพล
  • interest: an advantage or benefit to someone or something - ผลประโยชน์
  • invite: to ask somebody formally to go somewhere or do something - เชิญ
  • key: very important - ที่สำคัญ
  • latest (adj): newest; most recent - ] ล่าสุด, See also: ทันสมัยที่สุด, เกิดหลังสุด
  • latter: used for referring to the second of two people, things, or groups that have just been mentioned - อันหลัง,ครึ่งหลัง,ส่วนที่สอง
  • location: where someone or something is - ที่ตั้ง,ทำเล
  • looming : seeming likely to happen soon - ที่เห็นลางๆ
  • managing director (MD): the top manager of a company, similar to a CEO, the member of a company's board of directors who is responsible for running a company on a daily basis -
  • manipulate: to control something or someone to your advantage, often unfairly or dishonestly - จัดการเพื่อหวังผลอย่างใดอย่างหนึ่ง
  • mixed-use development: a real estate or property development with many different commercial uses, such a building with a hotel, shopping mall, restaurants and bars -
  • outcome: a result - ผล
  • overseas: in another country - ต่างประเทศ
  • partner: one of the people who owns a business and shares the profits, etc or works together with another business in an activity - หุ้นส่วน, ผู้ร่วมมือ,
  • petition: a document signed by a large number of people demanding or requesting some action from the government or another authority - การถวายฎีกา,การร้องเรียน
  • plot (noun): a piece of land used for a particular purpose - ที่ดิน, ที่ดินแปลงเล็ก
  • policy (noun): a set of plans or action agreed on by a government, political party, business, or other group - นโยบาย
  • popped up: appeared suddenly -
  • prime: of the best quality - ที่ดีที่สุด
  • project: a planned piece of work that is designed to find information about something, to produce something new, or to improve something - โครงการ
  • property: a building or buildings and the surrounding land - อสังหาริมทรัพย์
  • prosperity: the situation of being successful and having a lot of money - ความมั่งคั่ง
  • purchasing power: buying power; the ability to buy things, i.e., having enough money to buy things - กำลังซื้อ
  • reasonable: fair, practical and sensible - มีเหตุผล
  • recently (adverb): not long ago - เมื่อไม่นานมานี้, เมื่อเร็วๆ นี้
  • record: the best or most ever achieved - สถิติ
  • represent: to act, speak or be present officially for another person or people - เป็นตัวแทน
  • requirement: something that you must have or do in order to do or get something else - ข้อกำหนด, ข้อบังคับ
  • sector: a part of a country’s economic or business activity - ภาค (เศรษฐกิจ)
  • security: protection; safety from attack, harm, or damage - ความมั่นคง, ระบบรักษาความปลอดภั, ความปลอดภัย
  • serves as: is used as; functions as -
  • SET-listed: a public company, i.e., a company that offers its shares to the public on the Stock Exchange of Thailand (SET) - บริษัทมหาชน
  • situated: located - ตั้งอยู่ที่
  • sole: only - เดี่ยวๆ
  • sounding out: trying to find out someone’s opinion about something - หยั่งเสียง
  • source: a place where information comes from; someone who gives information - แหล่ง
  • space: an area or a place that is empty or that can be moved about freely - ที่ว่าง
  • spokesman: a person who speaks on behalf of a group or an organization - โฆษก
  • square (noun): a four-sided shape with sides of equal length - สี่เหลี่ยมจัตุรัส
  • support: to give help, encouragement or sympathy to somebody - สนับสนุน, เป็นกำลังใจ
  • survey: to make an examination of something to find out about its condition - สำรวจ
  • taxpayer (noun): ordinary people and businesses who pay money to the government as taxes - ผู้เสียภาษี, ผู้ชำระภาษี
  • traditional (adj): of a custom, a way of life or a way of doing things that has not changed for a long time - เป็นประเพณี, ตามธรรมเนียม, ตามที่ปฏิบัติกันมา
  • under review: being examined again in order to decide whether something is suitable or satisfactory - กำลังถูกการตรวจสอบอีก
  • value: how much something is worth in money or other goods for which it can be exchanged - มูลค่า
  • wah (noun): a Thai unit of length, equal to 2 metres - วา
  • worth: having a value in money, etc - มีค่า, มีมูลค่า
Do you like the content of this article?
COMMENT