KBank Private Banking Revealing the holistic approach to real estate management that people have to know, along with updating 5 real estate trends to watch.

Mrs. Korakot Atthasakulchai, Chief Non-Capital Market Solution, Private Banking Group, Kasikorn Bank, revealed that “Land and building tax collection has reduced the demand for land purchases to pass on as assets to their children. and became very alert in the importance of land property management in each family And for those who already own land, the taxation that changes every year continues to confuse landowners.

In this year, the thing that affects the tax calculation is The change in land appraisal prices by the Treasury Department, which is the basis for calculating land tax between 2023 and 2026, from the land in the database of KBank Private Banking, found that 50% of the appraised lands were unchanged and 39% of the lands were increased. up and 11% of land appraisal prices decreased. The land appraisal price that has increased considerably is Land in the area that the appraisal price With market prices are very different, such as land in the provinces, especially in tourist cities. with a high rise in the past Therefore, higher appraisal prices result in higher tax rates.

In addition, 2023 is the first year that tax rates for unused land have been adjusted. Thus, land owners have to pay more taxes. KBank Private Banking, as a holistic real estate consultant, advises land owners to consider using their land instead of leaving it idle.

KBank Private Banking therefore summarizes 5 hot real estate trends to guide land investors or property holders in land utilization planning.

1. Buyer's market from land tax collection measures and buildings resulting in a large number of land entering the market Some land owners both individuals or even large real estate developers who have land but lack liquidity There is a tax burden that comes under pressure. It is necessary to release more land into the market.

In addition, the demand of buyers who bought land to keep as property decreased because of the tax burden of holding. The current land market condition is a buyer's market because there are many options in the market. price can be negotiated And in many areas, prices are being discounted to speed up sales. It is a new phenomenon in the real estate market. For land holders with wealth

  2. The landowner was alert. find a way to make use of the land Investors or land holders with the ability to pay taxes are aware. and more interested in managing their own land portfolio Many people began to use their land to reduce their tax burden, for example, for farming. Therefore, it creates an opportunity to expand related businesses to serve landowners who want to do agriculture but lack a lot of knowledge.

3. Decreased domestic purchasing power while purchasing power from foreign countries expands from the state of inflation and increasing interest rates by the Bank of Thailand as well as household debt burden. As a result, the purchasing power of consumers decreases.

and also affects the real estate sector in the group of consumers Although the group who wants to buy for living tends to recover. But the group that wants to buy for investment There is still a risk of a slowdown from more tight conditions. from an increase in interest And financial institutions themselves are more stringent in credit approval.

which is affected by rising bad debt, higher interest rates and inflation also affects the manufacturing sector. real estate developer Was affected by increased production costs. Causing more caution in project development Especially small or new

However, the real estate sector related to the tourism industry, such as hotels, has a high growth potential. According to the statistics of the Tourism Authority of Thailand (TAT), it was concluded that in the first 6 months there were 12 million tourists entering the country, which was a significant increase compared to the same period last year. with only 2 million tourists

In addition, the geopolitical implications Causing more immigrants to Thailand boost real estate sales for foreigners in many provinces across the country compared to the same period last year Including the interest in moving to set up a production base of foreign capital increasing.

In particular, capital from China will see that the real estate sector has benefited from increased purchasing power from foreign countries. However, when the demand for purchases in the foreign market is greater. Many entrepreneurs have accelerated development. and expand business To meet more demand, however, developers should be cautious because these trends tend to come quickly.

4. The growth of the Outer Urban Area when the prosperity is no longer concentrated in the city. Building roads and mass transit systems to access the outer areas of Bangkok Is another important factor that makes the city grow, causing many real estate projects to expand outside the city along the road and more trains

Entrepreneurial Development Options Real estate developers have more areas to play with. Although such factors will affect the growth of suburban land prices. due to the expansion of the city into the area and low original land price base This led to a high rate of price growth. However, prices were pressured by options in other areas. with more as well

5. Secondary cities slow down growth immigration and the birth of a declining population It is a factor that causes the purchasing power of secondary cities to be insufficient. and in the real estate sector itself Secondary cities in many provinces have a lot of land speculation. There are land prices that grow beyond their potential. against demand and purchasing power of consumers

As a result, the real estate sector in secondary cities slowed down. May have to wait for more urban expansion. The price of land corresponds to purchasing power. equilibrium market Or is it motivated by mega-projects that attract investment? and there is an increase in the number of jobs significantly The real estate business in secondary cities will recover. and has a better growth direction

“These trends will provide a broader picture of the growth of the real estate market. Moreover, tax burdens are also important for landowners to be aware of. Due to land taxes that tend to increase steadily. both from the tax base and the higher tax rate,” Mrs. Korakot

Therefore, instead of leaving it to be idle, because in the event that the land is idle, every 3 years, the owner of the land will be taxed an additional 0.3%.

KBank Private Banking advises landowners to consider land utilization 1) for commercial purposes to generate income, 2) for agricultural utilization to reduce tax rates, 3) for public utilization by working with the government to exempt taxes, etc. As a land owner, KBank Private Banking has a team of experts ready to give advice and advice on real estate management, land tax and buildings. including related expenses Provide advice on real estate utilization to add value and generate returns both directly and indirectly It also provides basic advice on investing in real estate.

Proofread.... Suree Silawong

Source:https://www.bangkokbiznews.com/property/1085347

Date 25/08/2023