The highest land price rises in Bangkok over the past few years were found in Huai Khwang, according to findings from the Thai government’s recent assessment. That was to be expected given the increase of development in the area and its proximity to key hubs, such as Rama IX.
The Treasury Department Director-General Chamroen Phothiyod noted that land prices in Huai Khwang soared by 21.5 percent when compared to the last land assessment survey carried out ahead of 2016. New prices were supposed to go into effect in 2020 but the COVID-19 pandemic meant it was delayed until this year.
While the highest land price rises in Bangkok were found in Huai Kwang, most areas around the Thai capital saw increases. Plots along Wireless Road from Phloenchit to Khlong Saen Saep surpassed the THB1 million (USD30,000) per square wah mark. Silom and Rama IV Road were the only places relatively unchanged with experts noting these locations have most likely reached their cost peak for the time being.
One of the most interesting side effects of the rising land prices in Bangkok, and Thailand as a whole, was a jump in the number of available plots. These rose to 33.4 million from 31 million in the previous survey.
According to Director-General Chamroen, landowners divided their lands into smaller plots over the past few years, although no reason was given as to why this is happening.
Related: Where can you find land for sale in Bangkok?
Interesting Analysis
For starters, the dividing of land plots is being done for two reasons. First, smaller plots are more affordable and manageable for buyers who are focused on building a house or small business. Second, many landowners look to reduce their tax burden by splitting the land up and “giving” it to relatives if no buyer is found.
As for the highest land price rises in Bangkok being seen in Huai Khwang, that makes a lot of sense. With few plots available in the CBD and developers struggling to make their current holdings there profitable, many looked towards this district which is well connected to the city center. That, of course, caused land prices to soar with a number of firms having already turned their attention elsewhere in search of cheaper alternatives.
Also Interesting: Bangkok Authorities Look To Close Land Tax Loopholes
