The new land and buildings tax coming to Thailand may have been pushed back by 1 year, but that won’t stop Bangkok’s overall land prices from rising. Local media reports that prices are expected to increase anywhere from 10 to 30 per cent next year, with the average price of condos in Greater Bangkok rising by 6-7 per cent.
Nalinrat Chareonsuphong, managing director of property consultant Nexus Property Marketing, explains that the average rise in land prices during next year will be greater than the increases in the last two years when prices jumped by 5 to 10 per cent.
“The average rise in land prices this year has cooled down compared to the incredible rises in 2015,” she tells the Bangkok Post. “There were no new record highs in Bangkok land prices this year after they hit THB 1.91 million per square wah last year.”
The British Embassy land plot on Wireless Road (imaged) has been put on the market and it is expected to bring in a new record high price. It’s possible the land plot is sold in 2017, but this is not a guarantee. The British Embassy site is not far from the current highest price per square wah record holding plot that was bought by SC Asset.
Nalinrat adds that a scarcity of land and rapidly increasing land prices will result in the inner city area seeing the highest increase in condo prices next year at 9-10 per cent. “Average prices of new condo supply launched in Bangkok this year have soared quite high as they were driven by 2015 land costs,” she explains.
The average price of a condo rose 14 per cent in 2016, which was higher than the 8 per cent average annual increase that has been recorded during the past five years. Nalinrat warns that developers should be careful when investing in land plots in outer Bangkok to develop condo project as target buyers may not be able to not afford the rapidly rising prices.
Image: British Embassy Bangkok via thebeaumontpartnership.com
