Prices of vacant lands in Greater Bangkok (comprised of Bangkok and the neighboring provinces) are growing at slower rates due to a sluggish economy and the fact that the land and construction tax has been levied in full as of this year. The Real Estate Information Center (REIC) announced that the index of prices of vacant lands in Greater Bangkok was 354.5 in the second quarter of the current year, which is 4% higher than in the first quarter and 6.5% higher than over the same period last year.
Prices of vacant lands keep growing, although at slower rates compared to the 14.8% average annual growth from 2015 to 2019.
One of the key drivers was the country’s slower economic growth caused by the pandemic. The situation is also exacerbated by the conflict between Ukraine and Russia. As a result, the Thailand economy grew less than expected.
Many developers stopped purchasing land because its value increased after 100% collection of land tax and construction tax began this year, while in 2020 – 2021, only 10% of these taxes were collected.
According to REIC, the top five areas with the highest annual growth of land prices in the second quarter were Bang Phli, Bang Bo, and Bang Sao Thong in Samut Prakan with 40.5%. The second greatest growth of land prices year-on-year (24.2%) occurred in Bang Kruai, Bang Yai, Bang Bua Thong, and Sai Noi in Nonthaburi, followed by Muang and Pak Kret districts in the same province with a 23.6% growth.
Land prices were growing slower in downtown Bangkok than in the suburbs.