Appraisal prices for land located near mass transit lines in Bangkok looks set to increase significantly as the government wraps up its nationwide survey. New land appraisal prices in Bangkok for 2016-2019 are estimated to rise by 15.8 percent on average when compared to rates from the previous three years. The price for land plots along mass transit lines, both existing and planned, is expected to jump by 75 percent.
The Treasury Department noted the areas that have seen the biggest jump in land appraisal prices in Bangkok are Phra Khanong, Chatuchak, Bang Kapi and Lat Phrao. Land appraisals for other areas, including Bangkok’s CBD, have yet to be completed. Ekawat Manakeaw, deputy director-general of the Treasury Department, stated that land appraisals throughout the country are 80 percent complete and are most likely to be finished by the end of the year.
He added that appraisals will end up being 30 percent less than what actual land prices tend to be on average. The Bangkok Post used the Chidlom area as an example of this. Land there has sold for an average price of THB1.91 million per sq. wah; however, land appraisal prices for the area are likely to come in somewhere closer to THB1 million per sq. wah.
Special Economic Zones (SEZs) have been tipped for the biggest jumps in land appraisals prices in Thailand. For instance, Mae Sot in the Tak district will see land appraisal prices rise a staggering 95 percent from the previous three-year period. The newspaper reported that most areas within SEZs will see increases of 40 to 50 percent in land appraisal prices with certain places like Mukdahan and the Nong Khai province likely to have the largest price hikes.
“Mae Sot is one of the high-potential special economic zones, as it has industrial networks with intensive labor forces,” Ekawat noted. “It will also become an international logistics center when ASEAN integration becomes effective next year.”
