Land Prices To Grow Slow This Year

The current political situation in the Kingdom will certainly affect land prices growth in 2014 as government spending is delayed.

According to Sopon Pornchokchai, president of property consultant Agency for Real Estate Affairs (AREA), land prices in the city will increase by less than 3% this year, the lowest rate since 2010. In fact, prices were increasing by about 4.4% on average for the last past 10 years, except in 2009 when the growth only reached 2.9%.

“No matter if [the political crisis ends with] reform or a coup, the Bangkok property sector will inevitably see a negative impact and slowdown as the new government and budget are delayed, at least by six months,” Mr Sopon said yesterday.

The highest land prices were unsurprisingly found in Siam Center, Chit Lom and Phloen Chit where plots are sold at 1.65 million baht per square wah. Lands available for new development are getting even more rare in this area. Also, the lowest land prices in were along Liap Khlong 13 Road at kilometre 5 in the Lam Luk Ka area of Pathum Thani (2,500 baht per square wah), a location far from inner Bangkok and with a serious lack of accommodations and roads.

The largest increases were inevitably along the BTS and MRT lines, especially around On Nut–Bearing (+10.5% year-to-year) where more and more developers are building new Bangkok condos up.