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The Most Notable Transaction During Q1 2010

By on Jun 21, 2010 in Investment-Land, Research

Thailand Investment MarketView Q1 2010

The most notable transaction during Q1 2010 was the sale of 34,000 square metres of strata title offices in Serm Mit Tower on Sukhumvit Soi Asoke by Lasalle Investments to S.P. Building co., Ltd. The transaction price was approximately THB 1.5 billion (THB 44,117/sq.m.).    

Values of prime land plots in the central Phloen Chit area have risen above 2008’s record levels to a new peak of 1.5 million baht per square wah. Sansiri Public Company Limited acquired 2-rai plot adjacent to the American ambassador’s residence on Wireless Road. The total transaction value was 1.2 billion Baht and Raimon Land have apparently sold 2-3-42 Rai out of a total of approximately 9 Rai on their Ploenchit site.


Thai Commercial Investment Fund (TCIF) plans to launch a freehold property fund investing in the Nation Tower Building which consists of 3 office buildings and 1 car park building in Q2 2010. The subscription period for the IPO was from 15 – 23 March 2010. The fund has a market capitalization at IPO of approximately THB 1.96 billion with par value of 10 baht per unit. The fund will offer a minimum guarantee return of 4-5% for three years.


In the first quarter of 2010, the Thai economy continued to improve with many economic indicators showing a V shaped recovery. The National Economic and Social Development Board expected GDP in this quarter will increase around 6% Y-o-Y. Thailand’s Equity markets have gained about 7% from the beginning of the year (S.E.T. Index increased from 735 to 788).



Investor sentiment in the first quarter improved, contributed by developers’ new project launches and lending competition among financial institutions. Condominium sales in the mid- to high-end segments continued to grow especially in downtown areas or in areas near mass transit routes. We also saw development companies LPN, Sansiri and Noble sell out over 3,300 units in four condominium projects in 2 days which highlights the demand for condominium units in Bangkok.


Foreign investor interest in the Thai market is limited due to the political instability.


In Q1 2010, the government has agreed to extend some of the incentives measures for two months to stimulate the property development sector, the full package of incentives was due to end on March 28. The decision was made because approximately 10,000 people who had bought their homes might not be able to transfer their property right before the expiry date of the tax incentive measures.


This is an extract from Thailand Investment MarketView Q1 2010, click to download the full Thailand property investment report.

Toby has been living in Bangkok for a number of years and has a strong research background. With his years in Thailand Toby brings a wide range of property knowledge to his research writing

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