Phuket land prices are now as high as THB 156,250 per sqm in the Patong Beach area of the west of the Thailand island.
This is based on research from Thailand’s Agency for Real Estate Affairs, (AREA) which reported Phuket land prices of THB 250 million per squ rai. One rai is equal to 1,600 sqm.
Dr.Sopon Pornchokchai, President of AREA, which is widely recognised as being one of the most detailed research provides in Thailand, said this value was a lot higher than the government-assessed value of THB 51, 580 per sqm.
This figure is just 32 percent of the estimated market value as of mid-2018.
Dr. Sophon said in Thailand, the government assessed value tended to be somewhat lower than market value however, there is no relationship between the assessed value and sales price.
He added It could be between 10 percent and 90 percent below market value. Assessed values are used only for taxation purposes.
Compared with Bangkok, AREA found that market value of land in Bangkok was as high as THB 551,000 per sqm around Siam Square, Chitlom and Ploenchit in the centre of the city, and along Bangkok’s Sukhumvit mass-transit line.
The most expensive lPhuket land prices were still only 28 percent of the value in Bangkok.
AREA has conducted this survey since mid-2004. At that time, Phuket land prices in Patong Beach were just THB 25,775 per sqm.
The increase in Phuket land prices is not directly related to Thailand’s economy, according to AREA.
They are more dependent on tourism as opposed to the local economy.
The firm concluded by saying there are three areas in Thailand where land value grew independently, namely resort destination like Phuket, border cities where border trades prevails and industrial towns that produce goods for export..