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Thailand: Land appraisal price sees 8% rise
The average appraisal price for new land, which will take effect for four years starting from Jan 1, 2020, has risen by 8% nationwide from the current version.
The appraised prices of about 70% of total land have been held from the previous assessment, with 29% increasing and the remaining 1% falling, said Wilawan Veerakun, deputy director-general of the Treasury Department.
The appraisal price of land in Kamphaeng Phet province surged the most, by 200%, from the current version. But the new price is on a par with other provinces and the prices for Kamphaeng Phet had not been adjusted for two rounds, Ms Wilawan said.
The new land appraisal method is to serve the upcoming land and buildings tax, replacing the house and land tax and the local development tax, which have drawn criticism for being outdated.
Ms Wilawan said the appraised price of land in Ratchadamri and Chidlom, home of Siam Paragon, has the highest average, with a range of 900,000-1 million baht per square wah under the new version.
For land along electric train lines, the average price increased 8-10%, she said.
The new appraisal price for land in the Eastern Economic Corridor will not increase significantly to avert price speculation because basic infrastructure projects have not been completed, Ms Wilawan said.
Although the Treasury Department’s land appraisal price typically lasts for four years, the department is eligible to change the price if the market price is bumped up significantly.
In another development, Ms Wilawan said the department plans to push the private sector to develop state land with an estimated investment of 72 billion baht over the next five years.
Of the 72 billion baht, 38 billion will derive from joint investment under the public-private partnership scheme, 30 billion will involve large companies and the remainder will be handled by small contractors.
The department is pursuing investment in several large projects, including construction of a boutique hotel on the east bank of the Chao Phraya worth 1.6 billion baht, the expansion of Queen Sirikit National Convention Center worth 6 billion baht and development of a Mor Chit project worth 26 billion baht.
For the department’s revenue collection, it garnered 9.2 billion baht during the 10 months to July, Ms Wilawan said, adding that this fiscal year’s revenue target of 9.8 billion baht is achievable.
Source: https://www.bangkokpost.com/business/1729667/land-appraisal-price-sees-8-rise