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Thailand: Highest plot price rises in 3 provinces
Land prices in Samut Sakhon, Nakhon Pathom and Nonthaburi saw the highest increases last year among the top five locations in Greater Bangkok, with developers shifting to low-rise development from condos.
Phattarachai Taweewong, senior manager of property consultancy Colliers International Thailand’s research department, said residential developers are diversifying to single detached houses, semi-detached houses and townhouses (low-rise) as the condo segment becomes sluggish.
“They have prepared plots for low-rise projects that are mostly located in the outskirts of Bangkok or neighbouring provinces, for areas connected to the capital,” he said.
Vacant land priced at 2-3 million baht per rai in neighbouring provinces like Nakhon Pathom is affordable for developers planning low-rise projects, Mr Phattarachai said. On the main roads of those provinces, land priced at 7 million baht per rai is still available.
According to the Real Estate Information Center (REIC), the zone in Greater Bangkok with the highest year-on-year increase in undeveloped land prices as of the fourth quarter was Phra Khanong-Bang Na-Suan Luang-Prawet, with an increase of 61.8%.
“In those districts, the key driver is the city plan that is being drafted,” Mr Phattarachai said. “The new city plan will be applied next year.”
The second-highest year-on-year increase among undeveloped land prices was in Samut Sakhon, mostly in Muang and Krathum Ban districts. These were followed by the Rat Burana-Bang Khunthian-Thung Kru-Bang Bon-Chom Thong zone in Bangkok.
The fourth was in Nakhon Pathom, in the Kamphaeng Saen-Muang-Sam Phran zone, followed by the Bang Kruai-Bang Yai-Bang Bua Thong-Sai Noi zone in Nonthaburi.
The REIC reported on Wednesday that the price index of undeveloped land in Greater Bangkok was 223.2 points as of the fourth quarter last year, a rise of 32.6% from the same period in 2017 and 1.8% from the third quarter of 2018.
Vichai Viratkapan, the REIC’s acting director-general, said the increase resulted from an increase in vacant land prices along the new mass transit lines, particularly those along the Light Green Line from Bearing to Samut Prakan.
In locations near the mass transit lines, the highest increase in land price was in locations along the Light Green Line extension from Bearing to Samut Prakan with a year-on-year rise of 44.6%, as the skytrain started running on Dec 6, 2018 with nine new stations in Samut Prakan.
It was followed by the Light Red Line from Taling Chan to Sala Ya with an increase of 40.1%, the Blue Line from Bang Kae to Phutthamonthon Sai 4 (35.8%), the Sukhumvit stretch of the Light Green Line (34.3%) and the Dark Red Line from Hua Lamphong to Maha Chai (30.2%).
The REIC quarterly survey followed changes in the price of undeveloped land in six provinces: Bangkok, Nonthaburi, Pathum Thani, Samut Prakan, Samut Sakhon and Nakhon Pathom (with 2012 as the base year).
Land transferred to or by companies at the Lands Department was used in the survey, as most companies quote actual prices in their accounts.
The REIC selects plots sized from 200 square wah and does not include the value of buildings.
Source: https://www.bangkokpost.com/business/news/1616630/highest-plot-price-rises-in-3-provinces