Bangkok land prices up 5% in a year

Bangkok land prices have risen 5.3 percent in the past 12 months, according to the latest research from Thailand’s Agency for Real Estate Affairs (AREA).

However Dr.Sopon Pornchokchai, AREA’s President, was quick to caution that rising land prices does not mean an economic recovery.

AREA is the largest organization in Thailand to provide regular property information, and its latest research covered 324 sites in major areas throughout Bangkok.

The rise in Bangkok land prices was higher that the current deposit interest rate of 1.5 percent, but lower than average loan interest rates of 6.5 percent.

Dr. Sopon said the increase in Bangkok land prices was not because of the recovery of the economy of Thailand.

He attributed the increase to the development of Bangkok’s mass-transit systems.

Currently there are 124 existing and planned mass-transit stations, and where land prices around each station are increased substantially, he noted.

AREA’s recent survey concluded the feeling about Thailand’s economy remained unfavourable.

The firm spoke to commuters at Bangkok’s Victory Monument, and it found that around 5 out of 10 assessed the economy as moderate, but would improve following the forthcoming General Election.

And, so to Thailand’s most expensive land.

Siam Square, Chidlom (pictured, Central Embassy), Ploenchit and Nana were named by AREA as the locations with the most expensive Bangkok land prices.

Here, prices were recorded as being THB 550,000 per sqm.

AREA also revealed Bangkok’s cheapest land prices.

In Lam Look Ka, some 50 kilometres from the centre of Bangkok, prices here were noted as being THB 675 per sqm.

AREA provides paid-for property reports. www.area.co.th