Bangkok land prices rise moderately

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Bangkok land prices rise moderately  
Bangkok Post: 26 Sep 2008
Plots near mass transit still gain the most in value

Land plots along the current mass-transit routes and their extensions continue to post the highest increases in prices, according to property consultant Agency for Real Estate Affairs (AREA).

Managing director Wason Kongchantr said this trend would continue into next year, with land prices increasing by almost 10% in some areas near current and planned lines.

Meanwhile, the average land prices in Bangkok would rise by only 3% in 2008-09 due to unfavourable economic and political sentiments. This year, they increased 3.5% on average.

"Not every single plot in the areas near mass transit will see its price rise. Some plots are restricted by city planning, which limits the types of construction and usable area," he said.

Mr Wason said the land prices for plots near the BTS stations in the Phahon Yothin area had risen by as much as 76% from 1998 to 300,000 baht per square wah in appraised prices.

In areas where the BTS extension lines would come in the near future, the land prices have soared. On Krung Thon Buri Road in the Taksin area, the current land prices were 250,000 baht per square wah, up by 56% from 1998.

In Soi Baring (Sukhumvit 107), the land prices rose by half in the same period while the land prices in Bang Yai City increased by 90% to 55,000 baht a square wah..

Locations with high potential in the future are dictated by the expansion of the transport system. They include the Sena Nikom area on Phahon Yothin Road and the Saphan Mai area in northern Bangkok, the Baring area in eastern Bangkok, Bang Yai City on Ratanathibet Road and the Tao Poon area in northwestern Bangkok.

Other potential areas include the areas near the Taksin transport centre and the Chaeng Watthana civil service centre, parts of the government's megaprojects.

He added that Rama III Road, with a good road system and expressway passing near the Silom area had potential to be the second Silom as a lot of land was still available for development.

According to AREA's recent survey, the highest land prices remain in the Siam Square area. For a plot of four rai near Siam Paragon, the price of 800,000 baht a square wah is Bangkok's highest.

The Silom area was second in the survey, at 700,000 baht a square wah, as most of the Silom sites are better suited for offices, which generate lower returns than retail space.

Ranking third is Yaowarat where prices have fallen to 650,000 baht per square wah from 750,000 baht appraised in 1996 as commercial activity has slowed down.

Tied for fourth were Wireless and Sathon roads, where prices were appraised at 600,000 baht, followed by the Time Square area on Sukhumvit Road, at 500,000 baht.