Friday, December 28, 2007

Land prices surge (Bangkok)

Silom remains the priciest at B650,000

Bang Kho Laem, Sathon and Yannawa districts in Bangkok posted the highest increases in the Treasury Department's new land valuations effective from January until 2011.

Property values in Bangkok rose 5.76% overall under the new assessment from the last survey. Silom Road, in the heart of the Bangkok business district, maintains its position as the most expensive property in the country at up to 650,000 baht per square wah.

The least expensive property in Bangkok was in Nong Chok district, at 260 baht per square wah.

Besides Silom Road, the next most expensive properties were located on Yaowarat Road in Chinatown, at 550,000 baht per square wah, followed by Sampheng at 500,000 baht, Siam Square at 350,000 baht, Asok at 260,000 baht, and Ekamai at 170,000 baht.

Klaew Tongsom, the director of the department's Property Valuation Bureau, said the higher valuations for Bang Kho Laem, Sathon and Yannawa reflected municipal plans to position the three districts as the financial centre for Bangkok.

Land values in Bang Kho Laem under the new 2008-11 framework rose 56.86% from the last valuation, while Sathon values increased 52.38% and Yannawa 50.94%.

The official valuations are used to assess property taxes and also serve as a benchmark for property transactions by the private sector.

Mr Klaew said that valuations for another five Bangkok districts - Don Mueang, Bung Kum, Bang Kapi, Huai Khwang and Lat Phrao - would be adjusted further in 2008 for use in 2009 to reflect changes of more than 20% in prices.

Bang Sue district also recorded a 33% increase in land values, mostly due to speculation of the area's increasing importance as a transport hub for the new Red and Purple mass-transit lines.

Puntip Surathin, the director-general of the Treasury Department, said the new valuations included assessments for more than 30 million plots nationwide.

Of the total, 5.12 million plots were assessed on an individual basis, including 1.8 million in Bangkok and the rest in 23 provinces. The other 24.9 million plots were assessed on a block basis.

Upcountry land values rose on average by 26.97% in the new assessment.

The most expensive property values were recorded in Hat Yai in Songkhla province, at 400,000 baht per square wah. Southern property values increased by 85.79% on average from the last assessment, the highest increase of all regions.

The cheapest property values were recorded for Ban Rai, Uthai Thani and Doi Lo in Chiang Mai.

In the eastern and central provinces, prices rose by an average of 11.71%, with Muang district in Samut Prakan the highest at 140,000 baht per square wah. Values in the North rose 15.43% overall, with Muang district in Chiang Mai quoted at 250,000 baht per square wah.

For northeastern provinces, values rose by an average of 22.97%, with Muang district in Khon Kaen quoted at an average of 200,000 baht per square wah.

Surat Thani in the South had property values adjusted to 11,000 baht per square wah from 1,500 baht earlier. Officials said the sharp increase reflected higher land demand for agriculture.

Udon Thani also recorded a sharp increase of 55% in the new valuation, reflecting the province's strategic location along the North-South Corridor running from southern China to the Laem Chabang Port as well as the East-West Corridor ending in Danang, Vietnam.

WICHIT CHANTANUSORNSIRI
Copyright (c) 2007, Bangkok Post, Thailand
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