Vacant land price index before development In Bangkok and surrounding areas, Q4 2023 increased by 3.8 percent, the location with the highest increase. Samut Prakan-Phra Pradaeng-Phra Samut Chedi Meanwhile, the electric train route where land prices increased the most was the Green Line during Bearing-Samut Prakan-Bang Pu.

Key Points:

REIC reports the price index of vacant land before development. In Bangkok-metropolitan area, Q4 2023 increased by 3.8 percent from the previous quarter. and increased by 3.4 percent compared to the same period last year.

It shows that the price of vacant land tends to increase continuously. But it is still lower than the average growth rate of the 5 years before COVID-19.

This is due to the economic slowdown from various negative factors such as the policy interest rate increasing. Collection of land tax at full rate and high household debt burden As a result, the confidence of entrepreneurs decreased.

Wichai Wiratkaphan, Government Housing Bank Inspector and the Acting Director of the Real Estate Information Center revealed that “The factors causing the price of vacant land to increase at a slower rate are This is a result of the economic slowdown from various negative factors, especially the policy interest rate which was raised to 2.50 percent on September 27, 2023 (the fifth increase in 2023) and may tend to remain stable. It will be at a high level for a while. In addition, the government has collected land and building taxes at full rate without receiving a 90 percent discount like in 2019 - 2020, and the Treasury Department has announced new land assessment prices for the years 2023 - 2026.

These factors allow land owners to release land supply to the market to reduce the burden of paying land and building taxes. But at the same time The demand for accumulated land purchases in the market by entrepreneurs has decreased because the purchase of accumulated land will result in the obligation to pay land taxes.

causing costs from land ownership This will become a cost for developing the project in the next phase. and negative factors that directly affect purchasing power come from Thailand currently has The household debt situation is higher than 90 percent of GDP and the LTV relief measure expires on December 31, 2023, causing the purchasing power of housing to slow down. Therefore, entrepreneurs must adjust by delaying plans to launch new projects. Therefore, it may be necessary to delay the purchase of accumulated vacant land for development.

In the 4th quarter of 2023, it was found that "the top 5 zones with the highest land price growth rates" compared to the same quarter of the previous year (YoY) are as follows:

Number 1 is land in the Mueang Samut Prakan-Phra Pradaeng-Phra Samut Chedi zone. There was a higher price change rate of 51.3 percent.

Number 2 includes land in the Taling Chan - Bang Khae - Phasi Charoen - Nong Khaem - Thawi Watthana - Thonburi - Khlong San - Bang Phlat - Bangkok Noi - Bangkok Yai zones. There is a price change rate of 31.0 percent.

Number 3 is land in the Lat Phrao-Bang Kapi-Wang Thonglang-Bueng Kum-Saphan Sung-Khan Na Yao zone. There is a price change rate of 30.2 percent.

Number 4 is land in the Rat Burana-Bang Khun Thian-Thung Khru-Bang Bon-Chom Thong zone. There was a price change rate of 26.9 percent.

Number 5 is land in the Nakhon Pathom zone. There was a price change rate of 24.1 percent.

From the land price situation that has changed above. reflect that Land on the outskirts of Bangkok and surrounding areas has higher price changes than in the inner areas. Because there are plans to develop important projects in suburban areas and provinces in the surrounding area.

Development of large public and private projects Land expropriation plan to cut new roads and the development plan for the rail mass transit project, both new routes and extensions. In addition, the preparation of the city plan for Bangkok Fourth revised edition (expected to be announced in 2025) which will change the color map of land use. and the potential for development in some areas to support the development of commercial projects. and more dense housing Especially the areas along the electric train lines that were just opened after 2013, causing land prices in those locations to have a rapid price change rate.

While the city center location Even though the price has increased But vacant land before development is limited and already has a high price. As a result, the price growth rate is lower than in the suburban areas of Bangkok and surrounding areas.

As for the price of vacant land before development along the route with the electric train passing through in the 4th quarter of 2023, it was found that the top 5 electric train routes had the highest rate of land price expansion compared to the same quarter of the previous year (YoY).

Most of it is land where there are plans to develop electric train projects in the future. There are connections to important commercial areas and electric train projects that are already open for service. The details are as follows.

Number 1 is the Green Line (Samut Prakan - Bang Pu) and the Green Line (Bearing - Samut Prakan) which are future projects and projects that are already in service. which had an index value of 338.8 points and 333.9 points, respectively, and the growth rate of land prices increased by 51.3 percent compared to the same period last year (YoY), with land prices in Samut Prakan and Phra Samut Chedi urban areas It is an area where prices have increased a lot. This may be due to the fact that it is an area that is a connection point for the rail system network between Green Line (Samut Prakan-Bang Pu), Green Line (Bearing-Samut Prakan) and Yellow Line. (Lat Phrao - Samrong) makes it convenient to travel. Entrepreneurs therefore purchased land in this location to develop a residential project.

Number 2 is the Blue Line (Bang Khae - Phutthamonthon Sai 4), a future project. which has an index value of 536.9 points and the growth rate of land prices increased 31.0 percent compared to the same period last year (YoY), with land prices in Bang Khae area being the area where prices increased significantly.

Number 3 is the Light Red Line (Taling Chan - Salaya), a future project. which has an index value of 507.5 points and the growth rate of land prices increased 25.6 percent compared to the same period last year (YoY), with land prices in Phutthamonthon, Thawi Watthana, Taling Chan and Bang Kruai areas being the areas with the highest prices greatly increased

Number 4 is the Purple Line (Bang Sue - Rat Burana), a project currently under construction. which had an index value of 471.4 points and the growth rate of land prices increased 14.4 percent compared to the same period last year (YoY). Land prices in Phra Pradaeng, Thung Khru and Chom Thong were the areas where prices increased. a lot

Number 5 is the Gray Line (Watcharaphon - Rama 9 - Tha Phra), a future project. which had an index value of 479.4 points and the growth rate of land prices increased 10.3 percent compared to the same period last year (YoY). Land prices in Wang Thonglang, Bueng Kum, Lat Phrao, and Yannawa were the areas where prices increased. a lot

Source:https://www.bangkokbiznews.com/property/1110222

at 26/1/2024