The factor of "land", the main raw material and important cost in developing real estate projects. Day by day, the price is rising and becoming more and more rare, becoming a big problem in real estate 'expensive land - hard to find. The final answer is ' mix product - mix use.

  Corresponds to information from Frasers Property Home indicating that land prices before and after the outbreak of COVID-19 Increased up to 75% in 4 important locations!!

The location has an infrastructure that connects to the western provinces. An average of 65% increase in land, such as Rattanathibet - Chaiyaphruek zone, plus 64.4%, Pinklao - Ratchaphruek zone, plus 65.5%. Land prices increased by 97.9%, for example, the Suksawat - Pracha Uthit zone increased by 63.2%, Rama 2 - Bang Bon zone increased by 97.9%.

On the other side of the city that expands from the electric train project an average increase of 52.3%, such as the Watcharaphon - Sai Mai zone, an increase of 52.3%, the Agricultural Zone - Ramintra, an increase of 60.4%, a highly competitive location from the development of new projects, an increase of 91.8%, such as the Ramkhamhaeng - On Nut zone, land prices increased by 138.3%, Theparak - Bangplee zone Land prices increased by 38.8%, Bangna-Wongwaen zone increased by 98.4%.

Sanpin Sukhee, Chief Executive Officer of Frasers Property Home (Thailand) Company Limited, said that the location in Ratchapruek area Used to buy land for 6 million baht per rai, currently selling 2 hundred thousand baht per square wah!! After COVID, an average increase of 75% in some areas, prices jumped very high. behind the expressway

It is a big problem for real estate because prices flow like flowing water, becoming more expensive to the point that it is difficult to develop projects for sale.

Prateep Tangmatitham, Executive Chairman of Supalai Public Company Limited, admitted that the land problem was expensive and hard to find. is a big problem in real estate, so part of the project development guidelines will be "Mixed Product" combines single houses, twin houses, and townhouses in one project. Spread out in each potential area, for example Ban Khai District, Rayong Province, with more than 200 rai of land, to be developed into 4 low-rise residential projects.

Previously, 2 projects have been developed, namely Supalai Palm Springs Rayong and Supalai Bliss Baan Khai, while the third project will be launched this year, Supalai Grand Ville, and has plans to develop. 1 more project

At the same time, there are "Community Mall" S Avenue Rayong, a market for rent, about 1,000 panels and 50 units of commercial buildings, expected to be partially open for service in late 2023 and early 2024 and another 30 rai of land for sale for the Singapore International School or SISB, which is under construction In addition, there is a concept that has been developed to Chanthaburi Province.

  The high rise is in the process of finding land. to develop new condominium projects Which is harder to find! As well, we are now looking for land to make 3 more condo projects. If you can buy more in January-February, it is possible that it will be available for sale in the 4th quarter from this year's plan to develop condos. 3 projects in Bangkok and its vicinity 2 projects in the provinces 1 project

By the end of this year, the Supalai Icon Sathorn project will be launched, a super luxury high-rise condominium on more than 8 rai of land. It is a "mixed-use" project adjacent to South Sathorn Road.

“Land problems are scarce. may cause the development of the project to be larger in the form of a mix-use that combines many Types of real estate together, such as commercial projects with office buildings, hotels and shopping centers in the same area. Supalai has no capital restrictions. We want to buy a large area so we don't have to buy it often.”

On the side of "Noble Development", there is also a mixed-product project development from the "New Cross Khu Khot Station" project, developed under the name of a joint venture, Khoo Company. Kot Alliance Co., Ltd. The project is located on an area of 51 rai, developed in the form of low-rise condos. break development into phases

The first phase is developed on an area of 11 rai, consisting of 4 buildings with 8 floors, 2 buildings with dimensions of 22.05-69.55 square meters, starting from 990,000 baht to 2.7 million baht or an average price of 65,000 baht / square meter, 1,202 units. The project value is 2,007 million baht. It is estimated that this 51 rai land will take 10 years to develop!

It appears that it can make good sales for both those who buy it for real living. and group of investors because it can be rented out with a good return on investment According to the study, it was found that apartments in the Khu Khot area Can be rented at a price of 7,000-8,000 baht / month, so when investing in the New Cross Khu Khot Station condo, a 7% return on rental is guaranteed.

  Low-rise community meets home demand

Anat Kittikulmethee, Sansiri Public Company Limited's deputy managing director of low-rise project development, said that due to the rising cost of land and scarcity, real estate developers Need to buy land in the outskirts of the city to develop the project. Sansiri plans ahead and focuses on buying land in potential locations. And it is large, each area is 300-500 rai to divide the development of projects continuously. Recently, there are 8 zones, totaling more than 2,000 rai.

Divided into the Krungthep Kreetha zone of 500 rai, which in the first quarter launched Bukan, the Rangsit - Bang Phu zone of 400 rai. Currently there are 3 projects. The Bangkok-Pathum Thani zone is currently open for sale 2-3 projects. Ratchapruek-346 zone open for sale 2 projects. Zone opposite Central West. Gate opened 2 projects this year. Pracha Uthit 90 zone will open 2 more projects, Rama II Ring Road zone and Bangna zone KM. 26 in Bang Bo area to further develop. “Perfect living society” with T77 as a model is considered a “selling point” that attracts customers who come to live in Sansiri's projects.

“Each zone is a community area of 400-500 rai, with additional facilities for the residents, whether it is a school, restaurant, and a small community mall, which is a highlight that creates an advantage for Sansiri. which has land ready to support the development of housing projects in every segment or mixed products Including single houses, twin houses, and townhouses in one project Distributed in each area, increasing the opportunity to expand the customer base.

Community building guidelines considered a solution Land is expensive and hard to find. The development of projects in new areas requires facilities for customers to live in such as international schools, restaurants, small community malls. follow foreign trends The purchase of large land makes the cost cheaper. Able to develop a variety of projects at prices that are accessible to each group of customers

Currently, "Sansiri" has land on hand in various zones. Enough to develop the project for 5-10 years!! Ready to look for land in interesting locations to add all the time.

Source:https://www.bangkokbiznews.com/property/1050982

Date 2/2/2023