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Revaluation could spur land prices

The Treasury Department’s latest revaluation exercise could give a further boost to land prices, especially for plots along the commuter-rail lines in Greater Bangkok.

Director-general Winai Wittawatkarnvet said yesterday that the initial results of the revaluation showed that land prices nationwide were now 10-15 per cent higher than during the previous exercise, in line with economic conditions and inflation.

The higher prices will also affect the rents of the department’s land, which are revised every five years for existing tenants. New tenants will be subject to the current prices.

Land price revaluation takes place every four years. The figures from this round will be applied for transactions from January 1, 2012, to December 31, 2015.

The process is 60 per cent complete, with full completion slated for the end of this year. A total of 29.3 million plots around the country are covered by the revaluation, 27.4 million of them in the provinces and 1.9 million in Bangkok.

Winai said preliminary figures for land prices in Bangkok had moved up significantly, particularly those along urban-rail routes, for which there has been a rise of more than 50 per cent.

He said Bangkok residents still preferred owning land and houses out of the city centre, because of the lower prices. Being close to rail-transit stations allows them to estimate their travelling time to the heart of the capital.

Land prices in the city centre will also rise becaue of the increasing demand for city condominiums among high-income earners as well as expatriates.

Meanwhile, the provinces witnessing higher land prices are mostly tourist destinations, Winai said.

Golden prime area

The department predicts the “golden” prime area in Bangkok to be around the Skytrain station at Siam Square, with its major shopping centres including Siam Paragon, CentralWorld and Jamjuree Square.

The price of land in the area from Ploenchit Road to Rama I is expected to be quoted at Bt700,000 per square metre, while Rajdamri Road properties are expected to be quoted at Bt500,000 and those on Phya Thai Road to Rama IV, Bt450,000.

The department has revised prices in these locations up by an average of 50 per cent from the previous Bt200,000-Bt300,000 per square metre.

Valuations along the electric-rail routes, both for existing lines and planned extensions, have been increased by a similar amount.

For instance, the highest land price in Nonthaburi is focused on The Mall Shopping Centre (Ngamwongwarn), where it has risen from Bt96,000 to Bt150,000 per square metre.

Where the tranist system’s Purple Line (Bang Sue-Bang Yai) electric train will eventually run between Bangkok and Nonthaburi, the Kaerai intersection has the highest price adjustment, from Bt64,000 to Bt100,000 per square metre, while Nonthaburi’s provincial hall to Central Town has increased from Bt80,000 to Bt120,000 and the space around Central Town has risen from Bt65,000 to Bt80,000.

Land along the new Ratchaphruek Road is expected to be quoted at Bt50,000 to Bt65,000 per square metre, while the Kaerai intersection to Pakkred, which is where the Pink Line route will be constructed, sees a rise from Bt56,000 to Bt80,000.

In Bangkok, Silom, Ploenchit and Yaowarat roads have the highest revalued prices, at Bt700,000 per square metre.

The three prime areas, which comprise business areas, shopping centres, the financial centre and hubs for hotels and trading, are facilitated by the BTS Skytrain and MRT subway systems.

Source: The Nation

ThaiVest Editorial Team