Despite a 41% plunge in the total value of land transactions nationwide — the lowest in 15 years and occurring during an economic slowdown — land prices in Bangkok’s central business district (CBD) continued to climb, with Sukhumvit recording the sharpest increase at 10%.
According to property consultancy Colliers Thailand, while the economy lost momentum, land values in Bangkok keep rising, reflecting owners’ confidence in the long-term appreciation of their assets.
“Landlords in the capital, particularly in CBD areas, still view their land as highly valuable,” said Phattarachai Taweewong, research and communication director at Colliers Thailand. “We have not seen any indication of price reductions.”
He said some plots in prime downtown locations are now priced at more than 4 million baht per square wah, yet they continue to draw strong interest from developers eager to secure rare freehold sites within the city’s core.
SOUGHT-AFTER AREAS
A record-breaking transaction recently occurred on Sarasin Road, where SET-listed developer Sansiri acquired a plot for 3.9 million baht per sq w — the highest price recorded in Thailand.
Following that deal, asking prices in nearby areas such as Wireless Road climbed to 4 million baht per sq w, highlighting renewed confidence in Bangkok’s most coveted zones.
Chidlom has become the second-most expensive area, with asking prices at around 3.2 million baht per sq w after a transaction took place last year priced at 3 million baht per sq w.
The neighbouring Ploenchit area also remains in demand, with offers nearing 3 million baht per sq w, supported by limited supply and sustained interest from luxury developers.
In the Sukhumvit area, land prices have been rising by around 10% annually, with most plots along the main road offered at 2.5-2.9 million baht per sq w. The latest record was set by a Thong Lor plot that recently changed ownership at 2.86 million baht per sq w.
Property consultancy CBRE Thailand recently reported the average asking prices of freehold, off-plan condo units in the high-end segments in Central Lumpini and Sukhumvit converged once again in the second quarter of 2025 after a five-year period during which prices in Central Lumpini significantly outpaced those in Sukhumvit.
In 2014, prices in the two areas were relatively close, at 210,000 and 175,000 baht per sq metre, respectively.
Between 2020 and 2022, Central Lumpini surged ahead to 480,000 baht per sq m, while Sukhumvit trailed at 250,000 baht per sq m.
However, by the second quarter of 2025 prices had realigned, averaging 368,571 baht per sq m in Central Lumpini and 366,000 baht per sq m in Sukhumvit.
“Sukhumvit remains Bangkok’s most sought-after address among expatriates, accounting for 65% of total demand, compared with 18% in Silom-Sathon and just 9% in Central Lumpini and Siam,” said Artitaya Kasemlawan, head of residential sales-project at CBRE Thailand.
Mr Phattarachai of Colliers added that although some developers have offloaded undeveloped plots in various locations, these sites have still drawn strong interest from other developers.
“Several deals were successfully closed last year at relatively high prices,” he said.
Prime land in Bangkok’s CBD continues to attract major developers, though most high-value deals take time to conclude due to complex negotiations and due diligence, said Mr Phattarachai.
The more active transactions this year have shifted towards the city fringe and along extended mass transit lines, where land costs are lower and development focuses on affordable condos and low-rise projects.
According to the Bank of Thailand, the total value of land and building transfers nationwide in the first seven months of 2025 tallied 404 billion baht, down 41% from 689 billion year-on-year.
This marks the lowest level of national land transactions since 2010, as sluggish economic conditions and weak purchasing power weigh heavily on both developers and buyers.
In the Sathon area, land prices also climbed significantly following high-profile sales. The sale of the Australian Embassy compound averaged 1.45 million baht per sq w, but later transactions pushed prices above 2 million baht.
As a result, asking prices in Sathon have reached around 2.5 million baht per sq w, reflecting the ongoing scarcity of prime development land.
CHALLENGES AHEAD
Mr Phattarachai warned that persistently high land costs could pose a challenge for developers, as land remains the largest component of total project expenses.
“If land prices continue to rise without moderation, it will inevitably push up housing prices,” he said. “This could make new units increasingly unaffordable for consumers.”
Soaring land values have also lengthened the negotiation and decision-making process for buyers, said Mr Phattarachai.
Many landlords now recognise that prime plots can continue to appreciate, prompting them to delay sales.
As a result, more landlords are turning to new income-generating models instead of outright sales.
Many have begun exploring leasehold arrangements or joint venture partnerships with developers to monetise land while retaining ownership, he said.
“For genuine prime land, owners now expect prices to rise by more than 10% annually,” said Mr Phattarachai. “This has led to growing hesitation among landlords to sell.”
Colliers expects asking prices for land in Bangkok’s CBD to continue climbing through 2026, as prime landowners show no sign of lowering prices.
“When land prices rise, they tend to increase across the board,” he said. “There has never been a period when we saw a broad-based decline in CBD land values.”
The sustained surge in land prices will continue to pressure developers’ margins and consumer affordability, a situation that warrants close monitoring, said Mr Phattarachai.
“Developers will have to absorb higher costs, which directly affect project prices,” he said. “Ultimately, consumers will face higher home prices that may exceed what the market can bear.”
SIMPLY IRRESISTABLE
Colliers observed that many prime plots remain unsold, as potential buyers take longer to evaluate deals they perceive as overpriced.
However, some developers have resumed buying, confident that well-located land will still generate strong returns after development.
“Even when asking prices appear high, certain developers see long-term potential,” Mr Phattarachai said. “They are willing to buy because they anticipate robust profitability once the projects are completed.”
He said developer interest in land acquisition remains strong this year, particularly for sites suitable for mixed-use and residential projects.
Meanwhile, some developers continue to list non-core land holdings for sale, reflecting a more selective and strategic approach to land banking.
Mr Phattarachai said this dual trend — selective purchases of prime plots and divestment of non-strategic sites — will define the Bangkok land market in the near term.
“Land will remain a critical asset class,” he said. “Even with fewer overall transactions, the appetite for high-potential plots in Bangkok is unlikely to fade.”