AREA updates the top 10 land prices in Bangkok, making a new high, the market price increases by 3-10%, 1.7-3.6 million square meters per square wah. Square-Ekamai-Asoke, new zone "Early Phaholyothin" squeezed into the 10th place, trading 1.7 million per wah. Overall, in response to the government's economic recovery. Pushing the trend next year, land prices will increase by 5.5-6%.

Dr. Sopon Pornchokchai, President of the Thai Real Estate Research and Valuation Information Center, Agency for Real Estate Affairs Co., Ltd. or AREA, revealed "Prachachart Turakij" that the progress of land price surveys 400 points across Bangkok and its vicinity, which has been in operation since 1994 for the past 29 years, found that land prices in Bangkok's prime areas continues to increase continuously The price of land in 2023 increased by an average of 5.4% compared to 2022.

Land prices rise above GDP

However, compared to the GDP of Thailand in 2022, where the country's economic growth is at 2.6% and the GDP forecast in 2023 will be 2.5-3%, it can be seen that the increase in land prices across The city has a growth rate higher than GDP. The reason is that the government has invested in mega-projects for multi-colored electric trains in the past.

Therefore, although the country's economy is not very good But the price of land still increases according to the potential of the location that has changed. because every time there is a construction of the electric train or open a new train station This is equal to opening the soil to the project development directly.

While the land price trend in 2024 continues to rise from this year. It is expected that next year's land prices will grow at 5.5%, since 2023-2024 is the period where the construction of the electric train is gradually completed. and the opening of new electric train stations

“Factors that successfully form a new government and ready to manage the country from the end of August onwards There is a positive impact that is expected to have measures to stimulate the economy to return to vigor. Therefore, if the economy has a clear recovery The price of land next year may have more demand for investment in project development. And there is a chance that the average price next year will increase to 6%.

The most expensive land price is "Siam Square, Chidlom, Ploenchit" because it is an island located along the BTS SkyTrain in the CBD (Central Business District). developed into the most popular shopping center in the country

Even in these 3 zones, there are no government projects to invest in further development. But with the new electric train line expanding to the suburbs inevitably increases travel opportunities for suburban residents to spend more in the city center

Phaholyothin at the beginning increased strength by 9.7%

The next-level locations are Wireless Road zones with selling prices exceeding 2 million baht per square wah, including Wireless Road locations with an average of 2.95 million baht per square wah, Silom Road 2.55 million baht per square wah, and Sathorn Road 2.25 million baht per square wah.

Sukhumvit Road is still an important location that has not changed because there are 3 sections of statistics that are ranked in the top 10 with expensive land prices, consisting of Sukhumvit Road in Times Square at 2.8 million baht per square wah, Sukhumvit 21 Asoke Road at 2.6 million baht per square wah, and Sukhumvit Road, Ekkamai Section, 1.85 million baht per square wah

In addition, Yaowarat Road location The price has risen to 1.8 million baht per square wah, Phayathai Road, during the Department of Livestock Development. increased to 1.75 million baht per square wah and ranked number 10 on Phaholyothin Road in the beginning Considered the hottest price increase of 9.7%, an average of 1.7 million baht per square wah.

Land prices have increased 81 times in 48 years.

“It can be said that the average price of land adjacent to various BTS stations is higher than other land such as land adjacent to BTS stations. Price increases on average 5-7% per year compared to the price of land far away from the electric train line. The price increased by only 3-5% and there were still some areas where the price did not increase at all. because it is far from the public utility projects such as the Nong Chok zone, late Lam Luk Ka, etc.

For the past 48 years of statistics (1985-2023), it was found that land prices had increased by 81.1 times, representing an average annual increase of 12.3%, with prices increasing leaps and bounds during Thailand's transition. From an agricultural country to an industrial country during the years 1985-1990

In the past 48 years, it has faced several economic crises. But there was only one round when the price of land in Bangkok-perimeter dropped. That is during the Tom Yum Kung Crisis in 1997. In 1997-1999, the average land price dropped -7.9% per year, but after that, the land price curve was always in an upward trend. Causing the statistics during the years 2000-2023 (also through the COVID era) to have an average increase of 5.1% per year, although it slowed down somewhat during the 2 years of the coup, namely 2006 and 2014

Dr. Sophon said that Cost appraisal price for registration of rights and juristic acts of the Treasury Department Ministry of Finance The highest appraisal price of land is only 8.5 hundred thousand baht per square wah, except commercial land land which is appraised at 1 million baht per square wah, resulting in a four-fold gap between the market price and the appraised value. In order to be able to collect tax revenues in full.

Source:https://www.prachachat.net/property/news-1379146

Date 26/08/2023