The Real Estate Information Center of the Government Housing Bank <\/span>reports that the index of vacant land prices before development in Bangkok and its vicinity for Q4 2022 stands at 381.4 points, an increase of 3.4% <\/span>compared to the previous quarter (QoQ) and a 12.5% increase compared to the same period last year (YoY). This indicates that the prices of vacant land before development have been continuously rising, <\/span>although at a rate slightly lower than the average increase of 14.8% YoY during the five years prior to the COVID-19 crisis (2015 – 2019) and an average increase of 4.1% from the previous quarter.

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Dr. Vichai Wiratthakhan, Acting Director of the Real Estate Information Center of the Government Housing Bank, <\/strong><\/span>revealed 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 the ongoing conflict between Russia and Ukraine, which has affected the global economy. This may lead to a reduced growth rate for the Thai economy in 2023. Additionally, the government has announced the full collection of land and building taxes without a 90% discount as was the case in 2019-2020, and the Treasury Department has announced new land appraisal prices for the period 2023-2026 effective January 1, 2023, after postponing the new round since 2021. This has resulted in an average increase of about 8% in land appraisal prices nationwide. These factors have led landowners to release land supply into the market to reduce the burden of land and building taxes, while the demand for land purchases in the market has also decreased.

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In Q4 2022, it was found that the zones with the highest land price growth rates compared to the same quarter last year (YoY) are as follows:

Rank <\/u>1<\/u> is land in the Bangplee-Bangbo-Bangsaothong zone, with a price change rate of 57.3%.

Rank <\/u>2<\/u> is land in the Nonthaburi-Pakkret zone, with a price change rate of 46.9%.

Rank <\/u>3<\/u> is land in the Pathum Thani-Lad Lum Kaew-Sam Khok zone, with a price change rate of 31.9%.

Rank <\/u>4<\/u> is land in the inner Bangkok zone, with a price change rate of 16.6%.

Rank <\/u>5<\/u> is land in the Bang Khen-Sai Mai-Don Mueang-Lak Si-Min Buri-Nonthaburi-Khlong Sam Wa-Lad Krabang zone, with a price change rate of 10.1% (see Table 2).

The changes in land prices reflect that land in the suburban areas of Bangkok and its vicinity <\/strong>is experiencing a continuous increase in prices, as the selling prices are still relatively low and there is a high demand for development into low-rise residential areas, allowing for cost control of housing prices to align with purchasing power. In contrast, land prices in the inner and middle areas of Bangkok are already high, and although there has been some adjustment, the percentage change in prices is not as high as in the suburban areas.

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For vacant land prices before development along <\/span>the routes with electric trains in this quarter, <\/span>the top 5 electric train routes with the highest land price growth rates compared to the same quarter last year (YoY) are mostly lands with operational electric train projects and future projects as detailed below:

Rank <\/u>1<\/u> is MRT <\/strong>which is an operational project with an index of 508.3 points, showing a land price growth rate of 16.6% compared to the same period last year (YoY), with land prices in the Bang Sue area seeing significant increases.

Rank <\/u>2<\/u> is Dark Red Line (Bang Sue-Hua Lamphong) <\/strong>which is a future project with an index of 500.4 points, showing a land price growth rate of 16.6% compared to the same period last year (YoY), with land prices in the Bang Rak and Samphanthawong areas seeing significant increases.

Rank <\/u>3<\/u> is Green Line (Mo Chit-Sapan Mai-Khukhot) <\/strong>which is an operational project with an index of 477.3 points, showing a land price growth rate of 16.6% compared to the same period last year (YoY), with land prices in the Chatuchak, Don Mueang, and Bang Khen areas seeing significant increases.

Rank <\/u>4<\/u> is Blue Line (Hua Lamphong-Bang Khae) <\/strong>which is an operational project with an index of 488.4 points, showing a land price growth rate of 13.1% compared to the same period last year (YoY), with land prices in the Phasi Charoen area seeing significant increases.

And Rank <\/u>5<\/u> is Gold Line (Thonburi-Phra Chathipok) <\/strong>which is an operational project with an index of 481.4 points, showing a land price growth rate of 13.1% compared to the same period last year (YoY), with land prices in the Khlong San area seeing significant increases (see Table 3 and accompanying map).

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