Land Prices In Bangkok Rise Sharply After Floods

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PROPERTY

Land prices rise sharply after floods

Business Desk

The Nation

Land prices in Bangkok's inner areas such as Siam Square have surged dramatically to Bt1.4 million per square wah (4 square metres) in the aftermath of the severe floods that hit many areas, according to the latest survey of the Agency for Real Estate Affairs (AREA), an independent property-consulting firm.

The areas along Sukhumvit Road, where Siam Paragon Shopping Complex and Siam Square are located, have seen rates shoot up to as high as Bt1.4 million per square wah, or Bt560 million per rai, a 17-per-cent surge from Bt1.2 million per square wah last year.

The Siam Square area also recorded the highest increase in land prices in 15 years, rising from Bt430,000 per square wah in 1996. However, the price hikes reflect higher returns on investment. Most buildings in Siam Square are shopping complexes.

"The main reason for the skyrocketing prices is there is a mass-transit electric train passing through the areas, especially those in Siam Square, which connect to the stations of the two mass-transit trains - BTS Skytrain and MRT Subway," said the agency president, Sophon Pornchokchai.

Apart from Siam Square, the land price has also gone up in areas such as Wireless, Silom and Rajdamri roads to Bt1.1 million per square wah.

Areas along Sathon Road are priced at Bt1 million per square wah. Sophon said the surveyed land was evaluated according to market price and not the appraisals of the Treasury Department for land registration.

However, the evaluated prices might be lower than those set for sale at inflated prices. For some plots of land, sellers could be seen demanding as much as Bt2 million per square wah.

The cheapest land is along Klong 13 Road in Pathum Thani with an evaluated price of Bt2,600 per square wah or Bt1.04 million per rai.

"The agency believes that land prices will not fall as a result of the floods because there is no evidence that disasters - such as the severe floods in 1995 and the floods in Hat Yai last year - had lowered land prices," Sophon said.

-- The Nation 2011-12-03

[tomross46]

The increase in land value will help the property developers, which are members of the PT, and part of the cabinet.

[exeter]

Any chance of Udon Thani being included

[Chang_paarp]

So this increase in land price has nothing to do with how dry the areas stayed during the recent flood.

Who is willing to bet a different result if they were covered in fetid water.

[OzMick]

Any chance of Udon Thani being included

About the same chance as a white xmas.

[ginjag]

Any chance of Udon Thani being included

About the same chance as a white xmas.

Better RAISE the land height in Bkk by 2 meters- then you can have a rise in value. I hope that those silly persons paying the Hi SOs price will get flooded next time, so the dry area will become the wet area. If people have any sense that are not working there, get out of the capitol let there be a glut of unwanted properties later, so these VIPs lose hand over fist.

[nikster]

Doesn't make any sense. Maybe it;s a fluff piece by some property owners?!

Oh wait, the study was conducted by "AREA", an "independent property consulting firm". No way that "independent" firm could possibly aim to make the property market more interesting. Right?!

I guess reports on property in "The Nation" are about as reliable as those in the other newspaper - that is, they're best used as toilet paper.

[Hooters]

Both land and condo pricing keeps rising in line with the rest of Asia, no surprises there.

There seems to be a lot of people waiting for a crash , you only need to read the oldest posts but its not happening.

In reality most people looking for a collapse have effectively now priced themselves out of the land or condo market.

[toybits]

This is counter intuitive. You would expect land prices to decrease. Who wants to live in Bkk after a flood of bibilcal proportion? This is another land price bubble meant to deceive people. I don't think I can mention who owns those properties mentioned. ha ha. If you don't get it well that's your problem.

[khaan]

Both land and condo pricing keeps rising in line with the rest of Asia, no surprises there.

There seems to be a lot of people waiting for a crash , you only need to read the oldest posts but its not happening.

In reality most people looking for a collapse have effectively now priced themselves out of the land or condo market.

This is no different to the uniquely Thai way of doing business regarding anything being offered for sale

not just real estate . even if there are fewer actual buyers

they will put the prices up as we see right across the board for anything in Thailand.

What you are forgetting is that there is a fundamental difference between " price " and " value "..

You can ask any price you like but getting it is an entirely different matter?

Edited December 3, 2011 by khaan

[Hooters]

Both land and condo pricing keeps rising in line with the rest of Asia, no surprises there.

There seems to be a lot of people waiting for a crash , you only need to read the oldest posts but its not happening.

In reality most people looking for a collapse have effectively now priced themselves out of the land or condo market.

This is no different to the uniquely Thai way of doing business regarding anything being offered for sale

not just real estate . even if there are fewer actual buyers

they will put the prices up as we see right across the board for anything in Thailand.

What you are forgetting is that there is a fundamental difference between " price " and " value "..

You can ask any price you like but getting it is an entirely different matter?

try asking for a discount on new property developments

as they say "the trend is your friend" and Asian markets continue to boom. rather than rabbit on about what could or should happen why not post links to massive flood sales