The Real Estate Information Center (REIC) reports the price index of vacant land before development in Bangkok – metropolitan area, Q1 2024, with an index value of 407.8 points, an increase of 5.7 percent compared to the same period last year (YoY) and an increase of 100%. 3.5 compared to the previous quarter (QoQ)
This shows that the price of vacant land before development has continued to increase at a rate lower than the 5-year average increase before the COVID-19 crisis (2015 – 2019). The average rate increased 14.8 percent quarter-on-quarter compared to the same period last year (YoY) and the average rate increased 4.1 percent quarter-on-quarter (QoQ).
Wichai Wiratkaphan Government Housing Bank Inspector and the Acting Director of the Real Estate Information Center revealed that factors causing the vacant land price index continue to increase but in a direction that is still slowing down. This is due to the slow economic recovery both inside and outside the country in the past, together with Thailand’s household debt that is higher than 90 percent of GDP and the rising interest rate that is still likely to remain stable. high
All of these factors are negative factors that affect the ability to purchase housing. In addition, with the collection of land and building taxes in 2024, the government has no measures to reduce land and building taxes. This causes the demand for purchasing land accumulated in the Land Bank of entrepreneurs to decrease. This is because when purchasing accumulated land, there will be an obligation to pay land taxes. causing costs from land ownership This will become a cost for developing the project in the next phase.
In the first quarter of 2024, it was found that the top 5 zones with the highest land price expansion rates compared to the same quarter of the previous year (YoY) were as follows:
Number 1 is land in the Nakhon Pathom zone. There was a higher price change rate of 89.4 percent.
2nd place Including land in the Samut Prakan city zone.-Phra Pradaeng-Phra Samut Chedi There is a price change rate of 13.9 percent.
ANumber 3 is land in the Samut Sakhon zone. There is a price change rate of 12.4 percent.
Number 4 is land in inner Bangkok. There is a price change rate of 10.1 percent.
Number 5 is land in the Bang Khen zone.– Sai Mai – Don Mueang – Lak Si – Min Buri – Nong Chok – Khlong Sam Wa – Lat Krabang There is a price change rate of 4.6 percent.
From the land price situation that has changed above. reflect that Land in the suburban areas of Bangkok and surrounding areas There is a high price change. Due to the expansion of the city This is a result of the development of intercity expressway expansion. Including construction plans for rail mass transit projects, both new routes and extensions. Making it more convenient for people living in the suburbs to travel in and out of the city.
In addition, the price of land in the suburbs is still not very high. It can be used to develop low-rise housing projects that are consistent with the purchasing ability of those who want low-rise housing. In the heart of the city, prices have increased but the rate of change is not high. This is because there is a limited amount of vacant land before development begins. This is because land in the city already has a high price. As a result, the growth rate of land prices in the city is lower than in the suburban areas of Bangkok. and metropolitan area
“From the movement of the land price index this quarter. It was found that land prices in inner Bangkok have increased in price. It may reflect that some groups of entrepreneurs are more interested in developing housing in inner Bangkok. and it is the development of a high-rise residential project rather than a horizontal one.”
Because in the inner Bangkok zone, land plots are not large but have high value, therefore suitable for the development of condominium housing projects. This is consistent with residential survey data during the 4th quarter of 2023. It was found that the zone is a zone where a large number of new condominium projects have been launched. which increased to 10.8 percent
As for the price of vacant land before development along the route with the electric train passing through in the first quarter of 2024, it was found that the top 5 electric train routes had the highest rate of land price expansion compared to the same quarter of the previous year (YoY). The large area is land where the electric train project is already open for service. and is a future project that is connected to important commercial areas.
Number 1 is the Green Line. (Samut Prakan – Bang Pu) is a future project and the Green Line (Bearing – Samut Prakan) is a project that is already open for service. which had an index value of 265.1 points and 261.2 points, respectively, and the growth rate of land prices increased by 13.9 percent compared to the same period last year (YoY), with land prices in Phra Pradaeng District Phra Samut Chedi It is an area where prices have increased a lot. Meanwhile, in the Samut Prakan area, prices increased in some areas, including Tai Ban and Tai Ban Mai subdistricts.
Number 2 is the Blue Line (MRT). It is a project that is already open for service. and dark red line (Bang Sue-Hua Lamphong) is a future project. which had an index value of 522.0 points and 513.8 points, respectively, with an expansion rate of land prices of 10.1 percent compared to the same period last year (YoY), with land prices in Phaya Thai, Khlong Toei, and Huai Khwang being the areas The price has increased a lot.
Third place is the Green Line. (Mo Chit – Saphan Mai – Khu Khot) is a project that is already open for service. and dark red line (Bang Sue – Thammasat University Rangsit) is a project that is already partially open for service. which had an index value of 486.8 points and 479.3 points, with an expansion rate of land prices increasing 9.0 percent compared to the same period last year (YoY). Land prices in Bang Khen, Lam Luk Ka, Mueang Pathum Thani, and Sam Khok were the areas. The price has increased a lot.
Number 4 is the Blue Line. (Hua Lamphong – Bang Khae) is a project that is already in service, the Golden Line (Thonburi – Prajadhipok) is a project that is already in service, and the Orange Line (Taling Chan – Cultural Center) is a future project. which has an index value of 503.1 points, 495.9 points, and 488.2 points, with an expansion rate of land prices of 8.6 percent compared to the same period last year (YoY), with land prices in Phra Nakhon, Khan Na Yao, and Phasi Charoen being the areas The price has increased a lot.
Number 5 is the dark red line. (Hua Lamphong-Mahachai) is a future project. which has an index value of 476.9 points and the growth rate of land prices increased by 8.1 percent compared to the same period last year (YoY), with land prices in the Samut Sakhon, Bang Bon, and Bangkok Yai areas It is an area where prices have increased a lot.
Tags: Land prices Nakhon Pathom surge Green Line Samut PrakanBang PuBearing stands number
