The announcement by Thailand’s Constitution Court last week against the government’s THB2 triilion funding for large infrastructure projects is expected to stall land price growth, and deals another blow to a property market that’s already suffering from the combined effects of the political crisis and a slowing economy.
Speaking to The Bangkok Post, Professor Manop Bongsadadt of Chulalongkorn University’s architecture faculty predicted that land price speculation, especially in the provinces, will likely slow after significant price increases over the past few years. But he added that land prices were unlikely to move significantly because speculators are expected to hold on to their investments until prices start to rise.
Land prices in some parts of Thailand, including in Mukdahan, Nong Khai and Nakhon Phanom, have increased by more than 300 percent in the last five years.
Bangkok has also seen steep price rises, especially in the central business district where there is a acute land shortage.
Pramote Yamalee, Deputy Director General of the Land Department, said the number of property-related transactions from October 2013 to February 2014 declined by 10 percent.
During the year ending September 30, 2013, there were more than 6 million property transactions throughout the kingdom.
Image: The northern Thai city of Udon Thani.
Andrew Batt, International Group Editor of PropertyGuru Group, wrote this story. To contact him about this or other stories email andrew@propertyguru.com.sg
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