Real Estate Information Center, Government Housing Bank reports that the index of vacant land prices before development in Bangkok and its vicinity for Q3 2022 has shown an overall improvement, although it remains below the 5-year average prior to the COVID-19 crisis (2015 – 2019). The index has shown a positive trend, moving closer to the 5-year average compared to the previous quarter, with the index reaching 368.8 points, an increase of 4.0% from the previous quarter (QoQ), while the 5-year average increased by 4.1%. Year-on-year, the index also shows a positive growth trend.

The index of vacant land prices before development in Bangkok and its vicinity for Q3 2022 stands at 368.8 points, reflecting a 4.0% increase compared to the previous quarter (QoQ) and a 10.3% increase compared to the same period last year (YoY). This indicates that the prices of vacant land before development continue to rise, albeit at a rate lower than the 5-year average prior to the COVID-19 crisis, which saw an average increase of 14.8% per quarter compared to the same period last year (YoY) and an average increase of 4.1% from the previous quarter. This improvement is attributed to significant factors such as the progress in the construction of various electric train lines and the resumption of new project development plans by operators (see Table 1 and Charts 1 - 2).

 

Dr. Wichai Wiratthakhan, Inspector of the Government Housing Bank and Acting Director of the Real Estate Information Center  revealed that the factors contributing to the slower-than-normal increase in vacant land prices since 2021 include the government's announcement to fully collect land and building taxes without the 90% discount that was available in 2019 – 2020. This has led developers to reconsider their land acquisition strategies to manage the tax burden, which is a cost of project development. Additionally, developers have delayed new project investments in anticipation of economic recovery and the return of consumer purchasing power. The ongoing war between Russia and Ukraine has also impacted Thailand's economic growth in 2022, which is expected to be lower than anticipated. All these factors have resulted in the index of vacant land prices before development in Bangkok and its vicinity not returning close to the 5-year average, despite quarterly improvements.

Top 5 Zones with the Highest Growth Rates in Land Prices in Q3 2022 compared to the same quarter last year (YoY) continue to be in the suburban areas of Bangkok and its vicinity, driven by demand for land for horizontal residential development, where land prices remain relatively low, allowing for housing development that aligns with purchasing power. In contrast, land prices in the inner and middle zones of Bangkok are already high, and while there have been some adjustments, they do not reflect the same high growth rates as in suburban areas. The rankings are as follows:

1st Place is land in the Bangplee-Bangbo-Bangsaothong zone, with a price change rate of 55.7%.

2nd Place is land in the Nonthaburi-Pakkret zone, with a price change rate of 42.8%.

3rd Place is land in the Pathum Thani-Lad Lum Kaew-Sam Khok zone, with a price change rate of 28.1%.

4th Place is land in the Rat Burana-Bang Khun Thian-Thung Khru-Bang Bon-Chom Thong zone, with a price change rate of 26.4%.

5th Place is land in the Phra Khanong-Bang Na-Suan Luang-Pravej zone, with a price change rate of 11.6% (see Table 2).

Regardingvacant land prices before development along electric train routes in this quarter, the top 5 electric train routes with the highest growth rates in land prices compared to the same quarter last year (YoY) are primarily areas planned for future electric train project developments, detailed as follows:

1st Place is the Purple Line (Bang Yai - Tao Poon), which has been in service since 2016, with a land price growth rate of 9.0% compared to the same period last year (YoY). The areas in Nonthaburi and Bang Bua Thong have seen significant price increases.

2nd Place is the Pink Line (Khae Rai - Min Buri), which is under construction and has progressed over 92.82%. Land prices have increased by 5.8% compared to the same period last year (YoY), with significant price increases in the Lak Si and Khan Na Yao areas.

3rd Place is the BTS Sukhumvit Line, which is operational, with a land price growth rate of 5.2% compared to the same period last year (YoY). Significant price increases have been observed in the Chatuchak, Bang Na, Phaya Thai, and Phra Khanong areas.

4th Place is the Yellow Line (Lat Phrao - Samrong), which is under construction and has progressed over 96.79%. Land prices have increased by 4.7% compared to the same period last year (YoY), with significant price increases in the Bangplee, Pravet, and Samut Prakan areas.

5th Place is the Brown Line (Khae Rai - Lam Salee), which is planned for future construction, with a land price growth rate of 4.4% compared to the same period last year (YoY). Significant price increases have been noted in Nonthaburi and Lak Si areas (see Table 3 and accompanying maps).