COVID-19, economic slowdown not stopping rise in Bangkok land prices
Undeveloped land prices in Bangkok continue to rise steadily, although at slower pace, despite the COVID-19 pandemic and subsequent economic slowdown, which have been affecting Thailand for the past two years, according to the Real Estate Information Centre of the Government Housing Bank (GHB).
Empty land prices pre-COVID, from 2015 to 2019, increased by an average of 14.8% per quarter, but the prices for the past six quarters, since Q3 2020, increased by an average of 4.1% per quarter.
The Real Estate Information Centre attributed the steady price rise, especially in Bangkok’s eastern region, to the construction of several elevated train projects, some of which will near completion this year.
Train projects, which are nearly 90% complete, include the Orange Line, between the Thailand Cultural Centre and Min Buri, the Yellow Line, between Lat Phrao and Samrong and the Pink Line, between Khae Rai and Min Buri.
The areas, where land prices have jumped higher than in other areas, include those along the BTS Sukhumvit Route, which cover Chatuchak, Phaya Thai, Phra Khanong and Bang Na. For the past ten years, land prices in these areas have jumped about 305.8%, or 30.6% each year.
The land prices in Bang Kapi, Min Buri and Saphan Soong, through which the Orange Line passes, have increased 325.6% over the past ten years, or an average of 32.6% annually.
In Bang Phli and Muang districts of Samut Prakan and Prawet district of Bangkok, through which the Yellow Line passes, land prices have increased an average of 27.4% annually for the past ten years.
For land in Din Daeng, Wang Thong Lang, Suan Luang and Huai Khwang, where the Airport Link is now in service, land prices have increased 290.2% in the past ten years, or an average of 29% per year.
For land along the MRT routes, the price has increased 34.4% a year.
The GHB’s Real Estate Information Centre said that its land price index is based on information from the Land Department’s records of land ownership transfers of 0.08 hectares and larger and from actual transactions between legal entities only, which were recorded by real estate developers for tax calculations.