Bangkok's Prime Land Plots Set for Auction by Treasury Department

Thailand - Ekhbary News Agency

Bangkok's Prime Land Plots Set for Auction by Treasury Department

The Thai Treasury Department is poised to unlock significant revenue streams by bringing a substantial portfolio of real estate to market. More than 40 plots of land, previously acquired through asset seizure proceedings, are slated for public auction. In parallel, the department is initiating competitive bidding processes for the lease of an additional 10 prime land parcels situated in Bangkok and various other provinces. This aggressive asset monetization strategy underscores the government's commitment to enhancing national coffers and optimizing the utilization of state-owned properties.

Mr. Akkaruth Sandhyananda, the Director-General of the Treasury Department, provided specific details regarding a key parcel in the capital. A prominent five-rai (approximately 8,000 square meters) site in Bangkok, formerly housing a hospital for the Tobacco Authority of Thailand's factory, is among the highlighted offerings. The hospital facilities have long been relocated, rendering the land available for redevelopment and investment. This strategic positioning makes it a highly attractive prospect for developers and investors.

The plot's location on Sathon Road places it in one of Bangkok's most prestigious business and commercial districts. It is adjacent to the Eastin Hotel and in close proximity to the Surasak skytrain station, ensuring excellent accessibility and connectivity. Current land appraisals in this prime area indicate a value of approximately 1 million baht per square wah (roughly 4 square meters), projecting a total estimated valuation for this single plot at around 2 billion baht. This significant valuation highlights the intrinsic worth of well-located urban real estate.

Mr. Akkaruth further elaborated that the Sathon Road plot is designated as a "red zone" under the city's zoning regulations, signifying its potential for high-density commercial development. The department is actively exploring various project types suitable for private bidding, considering options such as condominiums, hotels, or mixed-use developments. The potential for office space development has been deemed less favorable due to an existing market glut. The proposed lease term for this prime asset is 30 years, a duration intended to provide investors with sufficient time for planning and realizing substantial returns on their investment.

Beyond the Sathon Road site, the Treasury Department plans to auction other significant Bangkok properties. One such parcel is located along the Chao Phraya River, adjacent to the high-profile Iconsiam shopping complex. This site previously served as a pier, and while an earlier proposal for an observation tower was considered, challenges related to access routes ultimately stalled the project. The riverside location, however, continues to hold considerable appeal for future development opportunities.

Another Bangkok plot, measuring two rai (approximately 3,200 square meters) and formerly occupied by the Fish Marketing Organization on Charoen Krung Road, is also on the agenda. The handover of this land back to the Treasury Department is currently awaiting clarification from the occupying agency, a procedural step necessary before it can be offered for auction.

The department's asset revitalization extends to historic buildings as well. Several older Treasury Department structures are being prepared for lease through auctions, including the historically significant Ban Phayap building located in Soi Wat Sam Phraya. This initiative aims to preserve cultural heritage while generating economic returns.

In provincial areas, the Treasury Department is preparing to auction the lease of the Bangpra golf course site in Chon Buri's Si Racha district. This property was previously put up for auction but failed to attract any bidders. The unsuccessful outcome was attributed to restrictive conditions requiring the construction of a hotel within the golf course premises, a requirement that deterred private investors given the proximity of numerous hotels in nearby Pattaya. The department acknowledges the need to revise and redesign the project format to enhance its attractiveness to potential bidders.

Mr. Akkaruth reiterated that the Treasury Department manages numerous plots acquired through legal resolutions. The impending auction of at least 40 such plots signifies a concerted effort to liquidate these assets efficiently. This proactive approach to asset management is crucial for optimizing government finances.

The department's revenue generation efforts are aligned with broader fiscal targets. For the fiscal year 2026, the Ministry of Finance has assigned the Treasury Department a revenue target of 11.9 billion baht. A significant majority of this revenue, approximately 95%, is projected to stem from land lease auctions and rental income, with a minor 5% contribution expected from coin production. The department is ambitious, aiming to surpass this target by approximately 15%, which would translate to generating around 13 billion baht in revenue, largely driven by the successful auctioning of land assets.

To facilitate the identification and utilization of state-owned land, Mr. Akkaruth has instructed Treasury officials nationwide to expedite surveys of underutilized land held by state agencies. The objective is to bring these dormant assets into productive use. Furthermore, the department is evaluating potential adjustments to its commercial rental rates. Officials have been tasked with studying the appropriateness of increasing these rates. However, considering the prevailing economic conditions, Mr. Akkaruth noted that significant rent hikes might not be advisable at this juncture, emphasizing a need for a balanced approach.

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