Real Estate Information Center, Government Housing Bank has released a report on the index of undeveloped land prices in Bangkok and its vicinity for the fourth quarter of 2021, showing an index value of 339.0 points, which is an increase of 1.4% compared to the previous quarter and a slight increase of 1.7% compared to the same period last year. This indicates that land prices continue to rise, even during a period of economic slowdown, although the rate of increase has been slowing down for six consecutive quarters since the third quarter of 2020.

            The average growth rate over the past five years, from 2015 to 2019, showed that the index of undeveloped land prices increased by an average of approximately 14.8% per quarter compared to the same period of the previous year, and increased by an average of about 4.1% per quarter compared to the previous quarter. This indicates that while undeveloped land prices are still increasing, the rate of increase is decreasing, likely due to significant factors such as the progress of various electric train constructions nearing completion in 2022.

 

Index of undeveloped land prices in Bangkok and its vicinity for the fourth quarter of 2021

 

            Dr. Wichai Wiratkhapan, Inspector of the Government Housing Bank and Acting Director of the Real Estate Information Center stated that the overall situation of undeveloped land prices in Bangkok and its vicinity after the emergence of the Omicron variant of COVID-19 has led to a slower increase in the index of undeveloped land prices each quarter, averaging about 13.8% per quarter compared to the same period last year, with a continuous decline in the growth rate for six consecutive quarters since the third quarter of 2020. Additionally, this increase is lower than the average before the pandemic for four consecutive quarters.

The changes in the index of undeveloped land prices in Bangkok and its vicinity indicate that during the COVID-19 pandemic, undeveloped land prices still increased, but at a decreasing rate, likely due to significant factors such as the progress of various electric train constructions nearing completion in 2022. In this quarter, most price adjustments occurred in areas along the electric train routes that are already operational, as well as those under construction.

 

Chart of the index of undeveloped land prices in Bangkok and its vicinity

 

Land prices in Bangkok's Eastern Side are rising due to the expansion of electric train routes

            It is noted that in the fourth quarter of 2021, land prices in Bangkok's Eastern Side have increased significantly due to several electric train lines under construction that are nearing completion, such as the Orange Line (Cultural Center - Min Buri), Yellow Line (Lat Phrao - Samrong), and Pink Line (Kra Yai - Min Buri).

 

Chart of the growth rate of the index of undeveloped land prices in Bangkok and its vicinity

 

In this quarter, the undeveloped land prices in areas with electric train routes show that the top five areas with the highest growth rates in land prices are:

Rank 1 BTS Sukhumvit Line which is already operational, has a land price growth rate of 15.0% compared to the same period last year (YoY).

It was found that land prices along the electric train route in Chatuchak, Bang Na, Phaya Thai, and Phra Khanong have increased significantly. Comparing the last 10 years, land prices in these areas along this electric train route have increased by as much as 305.8% or an average of about 30.6% per year.

 

Rank 2 Orange Line (Cultural Center - Min Buri) which is under construction and has reached 89.5% completion this quarter, has a land price growth rate of 14.6% compared to the same period last year (YoY).

It was found that land prices along the electric train route in Bang Kapi, Min Buri, and Saphan Sung have increased significantly. Comparing the last 10 years, land prices in these areas along this electric train route have increased by as much as 325.6% or an average of about 32.6% per year.

Index of undeveloped land prices along electric train routes Top 5 for the fourth quarter of 2021

 

Rank 3 Yellow Line (Lat Phrao - Samrong) which is under construction and has reached 88.7% completion this quarter, is planned to open in mid-2022, with a land price growth rate of 12.7% compared to the same period last year (YoY).

It was found that land prices along the electric train route in Bang Phli, Prawet, and Samut Prakan have increased significantly. Comparing the last 10 years, land prices in these areas along this electric train route have increased by as much as 273.7% or an average of about 27.4% per year.

 

Rank 4 Airport Link which is already operational, has a land price growth rate of 10.8% compared to the same period last year (YoY).

It was found that land prices along the electric train route in Din Daeng, Wang Thonglang, Suan Luang, and Huai Khwang have increased significantly. Comparing the last 10 years, land prices in these areas along this electric train route have increased by as much as 290.2% or an average of about 29% per year.

 

Rank 5 MRT which is already operational, and Dark Red Line (Bang Sue - Hua Lamphong) which is planned for future construction, both have a land price growth rate of 10.7% compared to the same period last year (YoY). It was found that land prices along the electric train route in Bang Sue have continuously increased.

Comparing the last 10 years, land prices in these areas along the MRT electric train route have increased by as much as 343.9% or an average of about 34.4% per year. For the Dark Red Line (Bang Sue - Hua Lamphong), comparing the last 10 years, land prices in these areas along this electric train route have increased by as much as 337.0% or an average of about 33.7% per year.