Please explain this land price math to me

[farang000999]

According to article in popular Bangkok newspaper the price of land in lower sukhumwit is currently 1.8 million baht per square wah.

according to http://www.siam-legal.com/realestate/thailand-convert-rai.php 1000 sqw = 1 acre

1.8 million baht x 1000 = 18 billion baht = 562.5 million USD per acre. This seems very expensive.

1000 sqw = 4,000 square meter but with a condo you can build up. So if 30 floors x 4,000 = 120,000 m2

At a price of 150,000/m2 = 18 billion baht.... ??????? This ignores all building costs, parking, shared community space, etc...

At 1.8 million baht per square wah it would make sense to tear down basically EVERYTHING.

Let's say there is a ten story building on a 500 square wah. Again, ignore parking and community space. So 10 x 2,000 m2 (500 square wah) = 20,000 m2.

9 billion baht (land value) divided by 20,000 m2 = 450,000/m2

....

[ezzra]

"1.8 million baht x 1000 = 18 billion baht = 562.5 million USD per acre. This seems very expensive"

Me think 1.8 million baht x 1,000 = 1.8 billion baht and not 18 billion baht,

In any case this is a premium price to pay for piece of dirt with a som tam cart on it...

[farang000999]

thanks

[trogers]

"1.8 million baht x 1000 = 18 billion baht = 562.5 million USD per acre. This seems very expensive"

Me think 1.8 million baht x 1,000 = 1.8 billion baht and not 18 billion baht,

In any case this is a premium price to pay for piece of dirt with a som tam cart on it...

Shouldn't your math be 1.8 billion baht?

But not every parcel of land in lower Sukhumvit carries such a value, only very desired locations.

Edited September 19, 2014 by trogers

[Paul944]

But what will happen with the price if someone buys Nana to tear it down and build a 40 floor hotel on the ground?

[ldnguy]

It will all get torn down eventually. May take a few decades, but it is slowly happening. Nana bars will be gone within 10 years. Many buildings in Bangkok are dilapidated because the owners are waiting for a good offer. So no point renovating. Buy some land now and hang on to it for a decade or two and you'll get rich.

[manarak]

LOL