Bangkok

Bangkok land prices plateau, new tax on the way

Published

3 weeks ago

September 24, 2019

Bangkok land prices plateau, new tax on the way | The Thaiger

Land prices in the Thai capital are forecast to plateau, or even drop this year. This would be the first time in more than ten years that Bangkok’s land prices have levelled off.

So what is causing the sudden surge in land becoming available?

Property and real estate consultants say the changes can be blamed on the general economic slowdown and the Land and Buildings Tax that takes effect early 2020. They report there’s a lot of new land coming up for sale as owners gear up for the new tax next year.

CBRE Thailand have noted that there is an increasing number of landowners with a large tracts of land for sale. They say that owners, affected by the slowdown in the country’s economy, are offering up slices of Bangkok land and properties with “negotiable deals or flexible prices”.

Worried about the upcoming Land and Buildings Tax, some owners are trying to divest themselves of some of their property assets. Some landowners are also offering leasehold options to minimise new costs from the new tax.

The new Land and Buildings tax will tax vacant land at .3 – .7%, with a rise of .3% every three years. To put that into perspective, for a one-rai vacant plot on Phloenchit Road, Bangkok, the tax rate will be 2 million baht per year.

New appraisal prices for land take effect for four years starting from Jan 1, 2020. According to the Treasury Department, the revised appraisals will mean an average increase of 2.5% in Bangkok and 8.3% nationwide.

According to CBRE, with so many plots coming onto the market at more negotiable prices, land prices in Bangkok could drop by 5-10% from last year or at least remain flat, for the first time since 2009.

CBRE reports that the average increase in land prices across Thailand per year has been around 2-3%, and 5-6% for Bangkok. But that has accelerated in recent years with land prices in Bangkok rising more than 10% per year over the past couple of years.

FazWaz CEO Brennan Campbell says that the ‘sellers’ market is now turning into a ‘buyers’ market around Bangkok.

“We’re still seeing a steady surge of buyers, both local and international, but the heat from the last couple of years has cooled, and that’s a good thing.”

“This year’s tightening up of Thai banks’ Loan-to-value ratios and the new Land and Buildings Tax coming into effect next year will be soaked into the longer-term trends. Whilst there may be a few bargains around there will be no large scale correction.”

“The fundamentals of property in Bangkok and many other places around Thailand remains positive.”

CBRE report that, last year foreign buyers recorded property purchases valued at 92 billion baht, 43% of that from Chinese buyers.

“When the Chinese market slows down, the condo market slumps.”

Property analysts are anticipating the condo market slowdown will likely continue into next year and that there is a large amount of available new stock on sale, and a few bargains around.

SOURCES: Bangkok Post | CBRE | FazWaz

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ASEAN

Bangkok and Nonthaburi to get 2 extra holidays during ASEAN summit

Published

2 days ago

October 16, 2019

May Taylor

Bangkok and Nonthaburi to get 2 extra holidays during ASEAN summit | The Thaiger

November 4 and 5 have been approved as official holidays for Bangkok and Nonthaburi as a result of the 35th Asean Summit and Related Summits being held at Impact Arena Muang Thong Thani in Bangkok.

Deputy government spokeswoman Traisulee Traisoranakul confirmed yesterday that the measure was being taken in an effort to alleviate traffic problems in both areas during the summit, adding that other state enterprises and the Bank of Thailand could implement the holidays for their subsidiaries at their own discretion and on a case-by-case basis.

“Government agencies in Bangkok and Nonthaburi will stop working on these dates. Meanwhile, state enterprises and the Bank of Thailand will consider announcing November 4 and 5 as holidays for their subsidiaries on case-by-case basis.”

“However, government agencies which have a necessity to provide urgent or previously scheduled services to their clients that cannot be postponed may stay open on November 4 and 5, depending on the decision by the heads of these departments.”

Some other public or regional holidays coming up…

SOURCE: The Nation

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Bangkok

Colourful European ecstasy tablets targeting Thai youth

Published

2 days ago

October 16, 2019

The Thaiger

PHOTO: CTN News

The Narcotics Control Board are warning about cartoon-character labelled ecstasy pills that are being smuggled from Europe and heading for Thailand and a growing market of younger users. Some of the colourful pills had been cast as characters from Minions movies and The Simpsons.

The Office of the Narcotics Control Board deputy secretary-general Niyom Termsrisook told reporters about the ecstasy pills following the arrest of a woman in Pathum Thani, just north of Bangkok, last week. The woman was arrested with about 28,000 cartoon-character ecstasy pills on October 8. Niyom said they had been tracked back to a European supplier.

“The pills were produced in France and the Netherlands. Drug dealers have also been expanding their markets to south east Asia. The drugs are smuggled through airports in Cambodia and Vietnam.”

“The pills are stored in Cambodia before being smuggled through natural border passages to Thailand.

Niyom alleged the smugglers were victims of human traffickers hired by African traffickers.

He said that local sellers of the ecstasy pills are targeting young pub goers as the drugs have a sex-stimulant property.

A source at the ONCB said a quantity of cartoon-character ecstasy pills was earlier seized at Suvarnabhumi airport in the capital. The pills were smuggled from the Netherlands where they were priced at 60 baht per pill.

SOURCE: Chiang Rai Times

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Bangkok

Thai High Speed Railway linking airports now to be signed off on October 25

Published

2 days ago

October 15, 2019

The Thaiger

The State Railway of Thailand and the Charoen Pokphand Group-led consortium are putting pen to paper and signing the contract for the high-speed train project on October 25.

The much-discussed high speed railway will link Suvarnabhumi, Don Mueang and U-Tapao international airports. The new SRT board was approved by the Thai cabinet today.

Deputy PM Anutin Charnvirakul says he is confident the contract will now be signed, adding that he has already met with Supachai Chearavanont, CEO of the CP group, and assured him of the government’s full cooperation and support.

The Charoen Pokphand-led consortium won the bid to develop the 224-billion baht high-speed train infrastructure as a signature project for the government’s flagship Eastern Economic Corridor (EEC) high-tech investment hub. The train service is scheduled to be operational in 2024 (The Thaiger is taking bets now).

Recently, however, the CP-led consortium raised concerns over land expropriation and eviction problems and asked for the government to share the risk on this issue. The Transport Ministry has already rejected the request putting the onus on CP as part of the proposal.

Mr. Anutin explained that, in any large infrastructure project involving expropriation of land, it is usual for the government or state agency not to be able to hand over the land to the contractor all at once. In such cases, the contracted completion date can be moved back.

He said the CP-led consortium should proceed with the high-speed train project without further delay because 70% of the land is ready to be handed over.

Meanwhile, the deputy PM admits that he didn’t know why the entire SRT board resigned en masse, delaying the signing of the contract, and denied that he had put pressure on the board to quit. He also denied that Transport Minister Saksayam Chidchob, also of the Bhumjaithai party, objected to the SRT board’s mass resignation because the latter wanted the contract to be signed quickly.

SOURCE: Thai PBS