Bangkok Land Prices To Keep Increasing
In spite of the current protests, land prices in Bangkok, especially in CBD (Central Business District) are thought to keep increasing in the near future.
According to Bangkok real estate agency CBRE Thailand, prices for land in the CBD will not be affected given that there is limited supply of freehold lands in the area.
This could be mostly explained by the following reasons:
– Cash-rich people who inherited from family own most of the lands in this area and are usually not keen on selling their plots unless an incredibly high offer is made.
– Land holding expenses are very low since most plots were not purchased through mortgages.
– There is virtually no holding tax and no inheritance tax.
Also, it can be clearly said this area gathers all the best hotels, malls, offices as well as condominiums of all Bangkok city.
Therefore, landowners have very little pressure to sell and only a few are willing to sell.
Prices have been driven by Bangkok property developers purchasing more and more lands to build new Bangkok condos up. Recently, Return On Investment through land purchasing has been one of the highest with a year-on-year increase of about 15%.