Land prices across greater Bangkok rose during the third quarter with the largest gains being recorded in suburban locations, according to data from the Real Estate Information Centre (REIC). the largest increases were seen in the Samut Prakan and Nonthaburi provinces where prices remain relatively low.
In fact, land prices in the Bangkok city center grew at a much slower pace than in years past due to a number of factors. Most notable, a scarcity of land and already steep asking prices mean CBD plots have very little room for growth.
Read more: Where can you find land for sale in Bangkok?
However, skyrocketing demand for housing has seen many homebuilders turn their attention to the city’s suburbs. This has allowed them to tap into a segment with real demand will also snapping up plots that remain relatively cheaper.
Across the city, land prices in greater Bangkok rose by 10.3 percent in the third quarter. A massive increase of more than 55 percent year-on-year was recorded in the Bang Phli, Bang Bo and Bang Sao Thong districts of Samut Prakan which has become a popular location for housing developments along with logistics/warehouse properties.
It was a similar story in the Muang and Pak Kret districts of Nonthaburi province which recorded a 42.8 percent increase year-on-year.
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Bangkok Authorities Look To Close Land Tax Loopholes
The Bangkok Metropolitan Administration (BMA) wants to close land tax loopholes that have seen some owners turn their holdings in prime areas into makeshift banana and lime farms. This allowed them to enjoy the agricultural land tax rate of 0.01-0.1 percent as opposed to the 0.3-0.7 percent applied to undeveloped commercial plots.
A source at the BMA told the Bangkok Post that up 12,000 land plots in Bangkok could be taking advantage of the current tax loophole which is costing the government a significant amount of revenue each year.
While new tax regulations have already been drafted, these still need to be submitted to the Bangkok city council for approval. Additionally, the BMA is seeking guidance from Finance Ministry’s Fiscal Policy Office regarding its plan to make the full collection on lands used for agricultural purposes.
