Land Valuation In Thailand

[Kevin17]

Can somebody expalin land valuations. I gather that the land registry have a notional value for tax purposes but how is a market value arrived at. Is it just a case of putting it on the market with an asking price and seeing if somebody pays it.

Is ther such a thing as land valuations in Thailand?

[quiksilva]

Hi yes there is most certainly land valuations in Thailand. The department of land do have government appraised land values but they are rarely in line with true current market values.

Open market values for land here are determined just as they are in the more mature markets. A variety of approaches can be used. The first and most familiar is the comparable approach (i.e. how much similar sized, and shaped plots in similar locations, with similar planning, access, infrastructure etc sold for recently).

Other valuation methods can be a residual development approach (how much money you could make by building the most suitable development on that site and deducting the costs to make that happen), and the income approach (where net revenue steams are capitalised).

If the land is developed one could also used a depreciated replacement cost approach too.

[cloudhopper]

Open market values for land here are determined just as they are in the more mature markets. A variety of approaches can be used. The first and most familiar is the comparable approach (i.e. how much similar sized, and shaped plots in similar locations, with similar planning, access, infrastructure etc sold for recently).

....if you can actually find out what this number really was.

[quiksilva]

When you are large property firm you do have quite a bit of exposure to all sorts of transactions, much more so than the public.