Why is this land priced this way? In-depth analysis of the plot next to Central Chidlom

Is the price set likely to sell? This is the question that clients and young agents ask every day.

The easiest land plot to sell would definitely be the one that can be developed into a condominium.

Because in Thailand, there are many developers and large public companies

with huge capital ready to scoop up land to develop into various forms according to each company's policy.

Those with some connections will send it to their acquaintances who work with public developers in the market,

hoping that the BD (Business Development) team will see the potential

for development and respond to discuss further acquisition.

That might be an ideal case that many people dream of reaching, whether it’s the agent themselves or the landowner, which is the tip of the iceberg — only about 10%.

The remaining 90% that gets sent out receives no response back, only an automatic email acknowledging the receipt

and promising to get back later, which eventually goes silent.

The question is, "How do you know at what land price the developer would consider buying?"

Come... let’s break down the details.

This content needs someone with knowledge of real estate law

and urban planning law to some extent

to understand quickly.

Let’s go!!!!!

Let’s take as an example the most talked-about land plot right now: the plot next to Central Chidlom

owned by a noble lady whom many sources claim is not selling, but now there’s news of negotiations valuing it at around 4 million baht per square wah.

This land plot has a total area of 2-3-56 rai
(read as 2 rai, 3 ngan, 56 square wah).
The front of the land faces south.

The land frontage on Ploenchit Road is about 65 meters,
with a depth of about 68 meters,
making it a very beautiful rectangular plot.

This land plot,
according to the Bangkok City Planning Act B.E. 2556 (2013)
(still using the 2013 version),

is located in a red zone (P5-2),
classified as commercial land.

If we look at the land use table,
we get an FAR of 10.
This means the usable space
can be up to 10 times the land area
(in square meters).

The calculation method is:
This plot of 2-3-56 rai
converted to square wah = (2x400)+(3x100)+56
equals 1,156 sq.wah.

Then multiply by 4 to convert to square meters.

So this plot can be utilized for
1,156 x 4 = 4,624 sq.m.

With an FAR of 10,
it means it can be developed into
4,624 x 10 = 46,240 sq.m. !!!

And in one clause of the urban planning law,
there is something called FAR Bonus,
which allows real estate developers
to build more space
to increase the project's value.

One condition states that
if the land is within 500 meters of a BTS station
and can be used for water retention,
it can get a bonus of up to 20% additional floor area.

This means this plot
can be utilized up to 55,488 sq.m.

Other FAR Bonus requirements
can be found online.
Just search for "FAR BONUS requirements."

Thanks to the image from FEASY.

Once we understand the land utilization,
let’s move on to

How tall can a building on this land plot be built?
By law, the height is measured in meters,
but some people count in floors,
which might not be entirely accurate.

To roughly estimate the height,
there is a formula called 2H.

It means
the width of the road from our side to the opposite side
multiplied by two equals the maximum building height.

#Detailed breakdown
1-How is building height measured? 2H, how high can it go?
Ministerial Regulation No. 55 (B.E. 2543)
(Copied wording exactly)

Clause 44
“The height of a building, from any point,
must not exceed twice the horizontal distance
measured perpendicular to the boundary line on the opposite side
of the nearest public road.”

“The building height is measured vertically from the road level or
the ground level to the highest point of the building.

For gable or hip roofs,
measure up to the wall of the top floor.”

This can be summarized simply as
measuring perpendicular in a horizontal line from the boundary on the opposite side
of the public road (the opposite side of that land).
Measure from the building layout to the road line on the opposite side.
Whatever distance obtained, multiply by two,
that’s the possible building height.
The deeper the set-back, the higher it can be built.
Or, the upper floors can be stepped back like a stair-stack.

CR. Image from Landeverywhere.

Sukhumvit (Ploenchit) Road
has a width of 29 meters.

And to build a large, special high-rise building,
there must be a 6-meter setback around the building
(often used as a driveway around the building).

And to maximize usability,
it is often built deeper inside
to achieve greater height.

Or if you want to roughly estimate
without any technical knowledge,

just look at neighboring buildings along the same road.
How tall are they?
We can build equally high.

Cr. Image from KhobOsang.

And to determine the building height
for this land plot,
in detail there are more sub-factors.

The formula is (road width + land depth - 6 - 10) x 2
6 is for building setbacks,
10 is for fire escape space.

(Why 6, why 10
relates to building regulations,
which is not the main topic here.
If interested, study further.)

Road width 29 meters
Land depth 68 meters
(29+68-6-10)x2 =81 meters
So the maximum building height
is 162 meters.

If each floor height
is 4 meters,
then about 40 floors.

Cr. Image from KhobOsang.

The next question is
if it is developed into a condominium,
what should be the selling price per sq.m.?

Normally,
if we know the land price,
we can estimate the total project value.

The land price
usually accounts for 20% of the project value.
In simple terms... whatever the land price is,
multiply by 5,
and you get the project value.

For this plot, priced at 4 million baht per sq.wah,
with a size of 1,156 sq.wah,
land price equals 1,156 x 4MB = 4,624 MB.
Project value: 4,624 x 5 = 23,120 MB.

Then what should be the selling price per sq.m.?

The method is:
Typically, the sellable area,
or NSA (Net Saleable Area),
is about 50% of the total project area.

Total buildable area now
is 55,488 sq.m.
Sellable area 50% = 27,744 sq.m.
Then divide by the project value (23,120 MB)
to get a price per sq.m.
23,120 MB / 27,744 = 833,333 baht/sq.m.

833K is the starting launch price,
which already yields some profit.
But once the EIA is approved,
pile foundation started,
and project progresses
until fully completed,
the price typically increases by about 20%.

This means the selling price per sq.m.
upon project completion
might be around 833,333 x 20% = 1,000,000 baht/sq.m.
This is possible.

Assuming the entry-level room
has a size of 30 sq.m.,
the selling price would be
833,333 x 30 = 24.99 million.

Summary
If this land plot finalizes at 4 million baht/sq.wah
and is developed into a condo,

The condo will be around 40 floors tall,
initial selling price around 833,333 baht/sq.m.,
and upon completion
the price could rise to 1,000,000 baht/sq.m.
(similar to Scope Langsuan).

If a selling price of 833,333 baht/sq.m.
cannot compete with surrounding projects,
we can discuss with the landowner
about the appropriate starting land price.

Actually, this land plot
can be developed into more than just a condo.
It can also be developed into a department store,
hotel, office,
high-rise and large-scale buildings.

It can be built up to 162 meters,
or about 40 floors,
roughly equivalent to Central Embassy next door.
Usable area up to 55,488 sq.m.

Read along slowly,
take time to understand.
Now, do you get it?
All numbers
are interconnected.

Conversely,
if you know that the condo
is launched at a certain price per sq.m.,
you can reverse calculate
from A-Z to Z-A
to find the real land price
they actually transact at.

For those still confused,
like and share first.
Eventually, the confusion will fade.