Bangkok land prices continue to grow but at a slower pace than previous years, according to the Real Estate Information Center (REIC). There were a number of reasons for this, including Thailand’s struggling economy and the full collection of the land and building tax which went into effect this year.
The REIC’s price index of vacant land in Greater Bangkok was 354.5 in the second quarter of 2022. This was a four percent increase from the first quarter and 6.5 percent higher when compared to the same period last year.
“Vacant land prices keep rising consecutively but at a slower pace when compared with an average annual growth of 14.8 percent between 2015 and 2019,” Khun Vichai Viratkapan, Acting Director-General of the REIC, told the Bangkok Post. “Many developers slowed down land purchases as land costs are higher after the land and building tax started the 100 percent collection rate this year, from 10 percent in 2020-21. They need to control the tax burden, which is one of the development costs.”
Related: Future rail lines cause suburban land prices in Bangkok to rise
Bangkok land prices grow fastest in the suburbs
The REIC noted Bangkok land prices are growing fastest in the suburbs due in large part to rail lines that are currently planned or being built. In fact, the noticeable increases happened in the capital’s neighboring provinces of Nonthaburi and Samut Prakan which have existing public transportation infrastructure that will be expanded.
In particular, Bang Phli in Samut Prakan has become a hot spot when it comes to Bangkok land for sale due to its proximity to Suvarnabhumi Airport and the city area.
“Land in Bang Phli is in high demand from both industrial estate developers that are looking for warehouse development and expansion, and residential developers that are looking to develop housing projects,” Khun Sopon Racharaksa, Chief Executive of Frasers Property Industrial explained to the newspaper.
