Investment Sales Remain Highly Active in Bangkok

Market conditions are not slowing down transactions from concluding across inner Bangkok. CBRE Thailand, the leading international property consultant, is delighted to announce the successful completion of its exclusive sell-side brokerage for the mixed-use Swissotel Bangkok Ratchada, a 407-key hotel, and Le Concorde Office Tower, comprising a gross floor area of approximately 51,000 square meters. The Ratchada area is attracting interest among investors, particularly with the MRT Orange Line expected to open in 2025. 

Mr. Barnaby Swainson, Head of Capital Markets, CBRE Thailand, said, “In the last 12 months, we have seen a notable increase in transaction volumes in the investment sector, both for land plots and income-producing buildings, such as this mixed-use office and hotel asset. The average price per square meter for office buildings in inner Bangkok currently stands at around THB 80,000, although prices vary based on factors such as building grade, rental rates, occupancy, specifications and connectivity. This sale marks another successful transaction, following our prime land and office building sale in Sathorn last quarter. In some cases, we see the price gap between buyers and sellers narrowing, and well-positioned investors are seizing this opportunity to purchase assets and expand their market share. Now is the perfect time to invest in high-quality products.”

Acquiring the mixed-use asset, Asset World Corporation (AWC) has announced plans to invest a total THB 8.7 billion for the purchase and renovation of the overall property.  This initiative is part of a wider trend, as hotel transaction volumes have surpassed the 10-year average, representing one of the highest levels in the past decade, including both freehold and leasehold sales, with the majority occurring in Bangkok.

Mr. Atakawee Choosang, Head of Hotels & Hospitality at CBRE Thailand, stated, “This transaction reflects strong demand for institutional-quality assets and demonstrates strong investor sentiment to reposition assets for further value extraction. The reconceptualization of the overall project will solidify this hotel as a leading option in Ratchada, an area of high potential and relatively limited branded supply, underpinned by robust Bangkok hotel market performance since the start of 2023. Through March, current occupancy rates for hotels are 75.5%, slightly below 2024 figures. The average daily rate currently sits at THB 4,397, reflecting a 2.5% increase from the previous year. Across our hospitality assets for sale right now, there is a similar ability to capture the financial upside that investors demand, supported by a broader market perspective.” 
    
CBRE forecasts that transaction activity levels will remain high throughout the year, despite the local shock of an earthquake in March and some global headwinds facing the market. Prime, unique, and evolving locations around central Bangkok and transit nodes are expected to perform best and prove most resilient.