Land prices in Bangkok rose by 3.5 percent last year, and a further 3 percent rise is expected during 2015 according to research from Thailand’s Agency for Real Estate Affairs (AREA).
The highest land prices were at Siam Square, Chit Lom and Ploen Chit, at THB1.75 million per square wah (THB437,500 per sqm). Prices are expected to rise to as much as THB2 million per square wah this year, according to AREA.
Dr. Sopon Pornchokchai, President of the agency, has conducted land price surveys in Thailand since 1994.
He noted that last year’s rise was down from the 4.6 percent increase seen between 2012 and 2013, and implies the slowing of economic growth in Thailand.
Land prices have increased 33 times between 1985 and 1996, he noted, however between 1998 and 2000 prices dropped by 23 percent.
Since 2001 land prices in Bangkok have been increasing every year.
During the past five years between 2009 and 2014, land prices increased by 55 percent on average. Bangkok’s central business saw 75.8 percent increases, AREA noted, while the outskirts of Bangkok saw between 39.9 percent and 49.9 percent increases over the same period.
AREA also noted land parcels along mass transit routes were increasing at rates above average by as much as 9.8 percent.
Andrew Batt, International Group Editor of PropertyGuru Group, wrote this story. To contact him about this or other stories email andrew@propertyguru.com.sg
