Real Estate Information Center, Government Housing Bank <\/strong><\/span>reports that the index of vacant land prices before development in Bangkok and surrounding areas for Q2 2022 stands at 354.5 points, an increase of 4.0% compared to the previous quarter (QoQ) and a 6.5% increase compared to the same period last year (YoY). This indicates a continuous rise in vacant land prices before development, although the rate of increase has slowed compared to the average over the past five years (see Table 1 and Charts 1 - 2).<\/p>

Dr. Vichai Viratakphan, Acting Director of the Real Estate Information Center, Government Housing Bank <\/strong><\/span>stated that the factors contributing to the slower increase in vacant land prices are due to the economic slowdown caused by the COVID-19 pandemic and, more recently, the impact of the war between Russia and Ukraine, which may lead to lower-than-expected economic growth in Thailand in 2022. Additionally, the government has announced the full collection of land and building taxes without the 90% discount that was available in 2019-2020, prompting developers to reconsider their land acquisition to manage the tax burden, which is a cost for future project development.<\/p>

      Table 1: Index of Vacant Land Prices Before Development in Bangkok - Surrounding Areas Q2 2022<\/strong><\/span><\/p>

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Furthermore, it can be observed that in Q2 2022, the top 5 zones with the highest growth rates in land prices compared to the same quarter last year (YoY) are as follows:<\/strong><\/span>

Rank 1 includes land in the Bangplee-Bangbo-Bangsaothong zone, with a price change rate of 40.5%.<\/span><\/p>

Rank 2 includes land in the Bangkrui-Bangyai-Bangbuathong-Sainoi zone, with a price change rate of 24.2%.<\/span><\/p>

Rank 3 includes land in the Nonthaburi-Muang-Pak Kret zone, with a price change rate of 23.6%.<\/span><\/p>

Rank 4 includes land in the Phra Khanong-Bangna-Suan Luang-Pravet zone, with a price change rate of 12.3%.<\/span><\/p>

Rank 5 includes land in the Samut Prakan-Muang-Phra Pradaeng-Phra Samut Chedi zone, with a price change rate of 8.5%.<\/span><\/p>

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   Table 2: Top 5 Zones with the Highest Price Change Rates Q2 2022<\/span><\/strong>

The changes in land prices reflect that land in the suburban areas of Bangkok and surrounding regions has seen significant price changes due to its affordability and increasing demand for development into low-rise residential areas. In contrast, land prices in the inner and middle zones of Bangkok are already high; although there has been some adjustment, the rate of change is not as significant as in suburban areas.<\/p>

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Table 3: Index of Vacant Land Prices Before Development Along the Most Significant Rail Lines Q2 2022<\/strong><\/span>

Regarding the vacant land prices before development along the rail lines this quarter, the top 5 rail lines with the highest growth rates in land prices<\/span> compared to the same quarter last year (YoY) are mostly lands under development for rail projects and routes planned for future construction, detailed as follows:

Rank 1 includes the Light Red Line (Taling Chan-Salaya)<\/span>, a project set for future construction, with a land price growth rate of 10.3% compared to the same period last year (YoY), with significant price increases in the Taling Chan and Tawi Watthana districts.

Rank 2 includes the Pink Line (Khae Rai-Min Buri)<\/span>, a project currently under construction with over 90.7% completion, where land prices have increased by 10.2% compared to the same period last year (YoY), particularly in the Lak Si and Khan Na Yao districts.

Rank 3 includes the Purple Line (Bang Yai-Tao Pun)<\/span>, which has been operational since 2016, with a land price growth rate of 8.53% compared to the same period last year (YoY), with significant price increases in Nonthaburi and Bangbuathong districts.

Rank 4 includes the Green Line (Samut Prakan-Bang Pu) <\/strong>which is a project set for future construction, and the Green Line (Bearing-Samut Prakan) which is already operational, both showing a land price growth rate of 8.51% compared to the same period last year (YoY), with significant price increases in Samut Prakan district.

Lastly, Rank 5 includes the Blue Line (Bang Khae-Phutthamonthon Sai 4)<\/span>, a project set for future construction, with a land price growth rate of 8.1% compared to the same period last year (YoY), with significant price increases in Nong Khaem and Bang Khae districts (see Table 3 and accompanying maps).

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