Property Values Drop In South

[sbk]

Property values in South fall against other regions

BANGKOK, April 8 (TNA) – The value of land and commercial property in Thailand's South has fallen by some Bt52.18 billion (about $1.64 billion) due to the continued insurgency in the region, while property values in other regions have increased without interruption, according to a leading property assessor.

Sophon Pornchokchai, chairman of the Asset Value Assessment Association of Thailand, said that the country's property had a combined value of Bt47.53 trillion (about $1.5 trillion), or seven times of the gross domestic product (GDP) or 30 times the present annual budget.

Property values in Bangkok and its environs reached the highest at Bt12.79 trillion (about $403.8 billion).

Of this, Bt10.54 trillion (some $331.9 billion) represents the value of residential units while Bt2.26 trillion (bout $71.2 billion) represents land for agricultural use.

The property value in the Northeast hit the second highest at Bt11.65 trillion ($366.8 billion).

Of this, Bt5.61 trillion ($176.7 billion) comprise the value of residential units and Bt6.04 trillion ($190.3 billion) is land dedicated to agricultural use.

While prices of property countrywide had increased on average, he noted, property values in the South had decreased due to the widespread instability in the region.

Without the violence in the three southernmost provinces of Pattani, Yala and Narathiwat, he said, combined property values in the region would have increased to Bt497.78 billion in 2005, Bt519.49 billion in 2006, and Bt544.44 billion in 2007.

But the real value of the property in the region dropped to Bt494.37 billion in 2006 and Bt492.27 billion in 2007.

It showed that property values had decreased by Bt52.18 billion due to the rising violence in the region. The overall amounts do not reflect the incalculable losses of lives and property damage incurred during years of violence. (TNA)-E005

Source: MCOT English News