Currently, the expansion of mass transit routes and expressways has driven forward the land prices in Greater Bangkok compared to the previous years. Vacant land prices in Bangkok are continuously growing from 2020-2022 despite the effect of the pandemic.
For instance, land prices in Western Bangkok have risen due to the construction of the new expressway. Rama 2 - Bang Bon, Pinklao-Ratchaphruek, Rattanathibet-Chaiyaphruek, and Suksawat-Pracha Uthit are some areas with some of the highest price increases in Western Bangkok. As for Eastern Bangkok, it was found that the highest land price increase is at Ramkhamhaeng-On Nut due to the increased competition between developers in the area.
This is in line with the report by the Real Estate Information Centre (REIC) on the 34% price index increase for vacant land in Greater Bangkok when compared to the same period the year before.
According to REIC acting director-general Vichai Viratkapan, although the vacant land prices continue to increase it was lower than the 5 years in the pre-pandemic by an average of 14.8%. The factors behind this were the slowdown in the global economy affected by both the pandemic and the Russia-Ukraine war. The government's collection of land and building tax from 2021 to 2022 was also part of the rationale.
Additionally, the top three areas with the highest vacant land price increase were still Bang Phli-Bang Bo-Bang Sao Thong in the fourth quarter of 2022 and Muang Nonthaburi-Pakkred, Muang Pathum Thani-Lat Lum Kaew-Sam Kok in the third quarter.
As for the price of vacant land along mass transit lines with the highest growth rate of land prices compared to the same quarter of the previous year (YoY) are MRT Main, Dark Red Line (Bang Sue-Hua Lamphong, BTS Green Line (Mo Chit-Saphan Mai-Ku Kot), Blue Line (Hua Lamphong-Bang Kae), and Golden Line (Thon Buri-Prajadhipok), respectively.
Final thought...
The change in vacant land prices has shown that the land in Greater areas of Bangkok and its vicinity prices have gradually changed. This was because the demand for vacant land was still high as these plots needed to be used for low-rise housing development. On the contrary, the land prices in the inner areas of Bangkok already have high pricing, although the price is slowly being adjusted. As a result, the percentage of price change is not as high compared to the Greater areas.
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