"GHB Property Data Center" reports that the land price index before development in Bangkok and its vicinity for Q3 2021 stands at 334.4 points, reflecting a 0.5% increase compared to the previous quarter (QoQ) and a 7.6% increase compared to the same period last year (YoY). This indicates that land prices continue to rise despite the ongoing economic slowdown.

            However, the rate of increase has slowed since Q3 2020. Analyzing the average growth rate over the past five years from 2015 to 2019, prior to the COVID-19 pandemic, the land price index increased by an average of approximately 14.8% YoY and 4.1% QoQ.

            Dr. Vichai Viratthakhan, Inspector of GHB and Acting Director of the Property Data Center stated that the growth rate of the land price index before development has been below the five-year average for three consecutive quarters since Q1 2021, coinciding with the ongoing COVID-19 pandemic. The impact of the third wave of the outbreak is evident, as land prices before development in Bangkok and its vicinity continue to rise but at a noticeably slower pace, indicating that some landowners may be holding onto their land in anticipation of an economic recovery.

Additionally, some landowners may be selling land during this period to generate working capital for their businesses, resulting in a slight increase in land prices, primarily in areas with electric train lines and at the ends of train lines that have already been extended.

 

Specifically, the Blue Line (Bang Khae - Phutthamonthon Sai 4) has seen land prices increase for four consecutive quarters. However, if landowners increase their desire to sell land, it may lead to a continued slowdown in the rate of change of land prices before development in Bangkok and its vicinity.

The land price before development in areas with electric train routes this quarter shows that the top five areas with the highest land price growth rates are:

Rank 1 is the Blue Line (Bang Khae - Phutthamonthon Sai 4) which is a project planned for future construction, located in the western zone of Bangkok, with a land price growth rate of 33.4% YoY. The areas around Nong Khaem and Bang Khae have seen significant price increases, ranking first for four consecutive quarters. The price changes in this area are a direct result of the price changes along the already operational Blue Line (Hua Lamphong - Bang Khae).

Rank 2 includes The Gold Line (Thonburi - Prachathipok) and The Blue Line (Hua Lamphong - Bang Khae), which are operational projects, while The Orange Line (Taling Chan - Cultural Center) is a project planned for future construction. All three projects have a land price growth rate of 31.9% YoY, with significant price increases in the areas of Bangkok Yai, Bangkok Noi, Khlong San, and Phra Nakhon.

 

Rank 3 includes MRT which is an operational project, and The Dark Red Line (Bang Sue - Hua Lamphong), which is a project planned for future construction, with a land price growth rate of 31.4% YoY. Significant price increases have been observed in the areas of Bang Sue and Chatuchak.

 

Rank 4 is the Light Red Line (Bang Sue - Taling Chan) which just opened on August 2, 2021, with a land price growth rate of 29.5% YoY. Significant price increases have been noted in the areas of Taling Chan, Bang Phlat, and Bang Krui.

And Rank 5 is the Orange Line (Cultural Center - Min Buri) which is currently under construction and has progressed 86.26% this quarter, with a land price growth rate of 29.4% YoY. Significant price increases have been observed in the areas of Huai Khwang and Bang Kapi.