Interesting land appraisal/assessment price from the land office

[steelepulse]

So Mrs SP went to the land office to see about an official land value due to the sale of a small house on a spit of land in Thalang. The land is just 80 square wah ( 320 square metres), and it was appraised/assessed at 2.1 million and change. Who knew that inland land in Thalang is now valued at almost 9 million per rai? Granted it's next to Thai Watsadu on the main road in a moo ban, so the location is actually pretty convenient, but really, 9 million per rai?

Mrs SP was hoping for a low assessment, but it didn't happen. However the actual structure was only assessed at about 8500/sqm so that was on the low side, but overall, at least the Thalang land department isn't lowballing on the assessed value.

[LivinginKata]

The land office only appraises land value from the point of view of transfer tax to be paid. Often times bears no relation to the price actually paid which is usually much much more.

[steelepulse]

Correct, so that's why I was surprised it was so high.

[LivinginKata]

Correct, so that's why I was surprised it was so high.

Central government has a big budget shortfall and have issued orders to all the regional offices to hike up the tax collection base. We know this from conversations with the Patong municipality who are extracting as much tax as possible from house rentals.

[Sophon]

80 tarang wah is one fifth of a rai, so if the valuation is 2.1 million for that plot one rai would be 10.5 million Baht.

Sophon

[eisfeld]

10.5M per rai? Is this land right at the main road?

Thalang is a huge area. I've seen prices from 2M to 20M per rai depending on location.

[Peterocket]

Correct, so that's why I was surprised it was so high.

Central government has a big budget shortfall and have issued orders to all the regional offices to hike up the tax collection base. We know this from conversations with the Patong municipality who are extracting as much tax as possible from house rentals.

Although the transfer fee on the sale of freehold land and property has been reduced from 2% to 0.01% effective 29 October 2015 to 28 April 2016.

Quote CBRE http://www.cbre.co.th/en/SubServices/thailand-land-property-tax

[schlog]

To get a feeling for a realistic thai price in each area, legal execution department was a help in the past but can't beat personal experience.

Good numbers you also get when asking the neigbors for a price guess. In most cases you hit the nail when reducing this guess price by 70-80%.

[exbikey]

For what its worth i think that land values in Thailand generally fall into either one of two categories i) land outside of Phuket &, ii) land on Phuket.

Category i) land values could be be considered 'reasonable'. Category ii) land values are not reasonable. Land values in some areas in Category ii) are so unreasonable i.e. 'not reasonable' that they need a separate category. For example, there is land close to the Patong police station where the asking price is Baht 200mill per rai.

It should be noted however, that if a young lady who originates from an area considered to be in category i), e.g. Issan, and has some family land for sale. And that young lady works or resides in Phuket and has a Falang boyfriend then by some miracle that particular plot of family land suddenly increases in value, and its value very nearly reaches the same dizzy heights of category ii). ;-)

[macahoom]

For what its worth i think that land values in Thailand generally fall into either one of two categories i) land outside of Phuket &, ii) land on Phuket.

Category i) land values could be be considered 'reasonable'. Category ii) land values are not reasonable. Land values in some areas in Category ii) are so unreasonable i.e. 'not reasonable' that they need a separate category. For example, there is land close to the Patong police station where the asking price is Baht 200mill per rai.

It should be noted however, that if a young lady who originates from an area considered to be in category i), e.g. Issan, and has some family land for sale. And that young lady works or resides in Phuket and has a Falang boyfriend then by some miracle that particular plot of family land suddenly increases in value, and its value very nearly reaches the same dizzy heights of category ii). ;-)

What a load of pure codswallop!

[benalibina]

For what its worth i think that land values in Thailand generally fall into either one of two categories i) land outside of Phuket &, ii) land on Phuket.

Category i) land values could be be considered 'reasonable'. Category ii) land values are not reasonable. Land values in some areas in Category ii) are so unreasonable i.e. 'not reasonable' that they need a separate category. For example, there is land close to the Patong police station where the asking price is Baht 200mill per rai.

It should be noted however, that if a young lady who originates from an area considered to be in category i), e.g. Issan, and has some family land for sale. And that young lady works or resides in Phuket and has a Falang boyfriend then by some miracle that particular plot of family land suddenly increases in value, and its value very nearly reaches the same dizzy heights of category ii). ;-)

What a load of pure codswallop!

Nahhh it really is not.