Land prices in Bangkok have almost doubled in price since 1998, with the most expensive plots now changing hands for more than THB 440,000 per sqm.
According to recent research from Thailand’s Agency for Real Estate Affairs (AREA), the highest land prices in Thailand can be found around Siam Square, Chitlom and Ploen Chit. AREA predicts prices in these areas will increased to as much as THB 450,000 per sqm or more by the end of this year.
Despite the current high prices, there is evidence that price growth is slowing. There was a 3.5 percent rise in land prices during 2014, and AREA expects just a 3 percent growth on average across Bangkok this year.
Bangkok witnessed its highest per annum land price increases during the 2004 to 2005 years when prices rose by 5.7 percent. In contrast, land prices fell by 23 percent between 1998 and 2000.
Dr.Sopon Pornchokchai, President AREA, whose organisation has been conducting landprice surveys in Thailand since 1994, reported that between 1998 and 2014, land prices in Bangkok on average have risen by 84 percent. In downtown Bangkok the rise has been a meteoric 158 percent, largely as a result of the development of the mass-transit systems in the capital.
Even those who purchased land in central Bangkok as recently as 2009 will be sitting on a 75 percent profit, AREA revealed.
During 2014 although the overall average increase was 3.5 percent land parcels along the mass-transit systems increased more than the average.
AREA noted there was an 8.5 percent rise for land parcels along the BTS and MRT mass-transit systems, and a 9.8 percent rise for land close to the purple line to Bang Yai.
Andrew Batt, Group Editor of Dot Property Group, wrote this story. Send your news, views, press releases and comments to him at [email protected].
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