While Bangkok land prices are hardly on a tear, they continue to rise even amid the economic uncertainty brought about by the Covid-19 pandemic. Figures from the Real Estate Information Centre, known as REIC, show a quarterly rise of 0.5%, and a yearly rise of 7.6%, in the land price index in Greater Bangkok in the third quarter. As reported by the Bangkok Post, acting Director-General Vichai Viratkapan has pointed to landlords opting to hold plots while waiting for an economic recovery as a major factor in the comparatively slow index growth.
Viratkapan noted that, while prices continued rising despite the economic slowdown, “the growth rate was lower than the five-year average for three consecutive quarters or since the first quarter of 2021 due to the economic fallout”. By way of comparison, the five-year quarterly average for the period 2015-19 was 4.1%.
Locations hosting mass transit lines, along with areas in proximity to extension lines, in particular the Nong Khaem and Bang Khae districts, accounted for the majority of the index growth. Viratkapan said that the price rise “was driven by those along the Blue Line’s Hua Lamphong to Bang Khae section which started operation in September 2019”.
Meanwhile, the Orange Line from Taling Chan to the Thailand Cultural Centre accounted for the second largest increase in growth, with land prices in the Bangkok Yai, Bangkok Noi, Khlong San and Phra Nakhon districts going through the roof.
As reported by the Bangkok Post, REIC monitors the prices of undeveloped land in the Bangkok, Nonthaburi, Pathum Thani, Samut Prakan, Samut Sakhon and Nakhon Pathom provinces, using 2012 as its base year. In producing the survey, it only refers to vacant land sized from 200 square wah.
SOURCE: Bangkok Post