Thailand
Thailand: Land prices expected to drop when new tax law enters force next year
Thailand: Land prices expected to drop when new tax law enters force next year
Tuesday, August 16, 2016 – LAND PRICES will drop by as much as 10 per cent next year after the land and building tax becomes effective, Pruksa Real Estate chief executive officer Thongma Vijitpongpun has forecast.
“Most landlords who hold land banks will face higher costs when they have to pay tax, which will force them to sell their land. This will cut land prices by up to 10 per cent from this year’s levels because the land supply in the market will be higher than now,” he said after a press conference yesterday.
According to a survey by The Nation, land prices in the central business districts (CBDs) reached a high of Bt2 million per square wah (Bt500,000 per square metre) on Sukhumvit Road, as paid by SC Asset Corporation early this year to develop luxury condominiums. But another deal under negotiation for land on Rama IV Road looks like hitting Bt3 million per square wah when it is finalised, possibly by the end of this year.
Pruksa paid Bt700,000 per square wah for land on Sukhumvit 61 that it will develop for a luxury condominium project next quarter. The company is also negotiating to buy land for Bt1.5 million per square wah on Sukhumvit 55 (Soi Thong Lor) for another luxury condominium. Read More?