Land Prices in Thailand will rise 8% nationwide - January 2020
Effective January 1, 2020 the average appraisal price for new land in Thailand will rise 8% nationwide. This increase will be in force for four years.
The previous assessment of about 70% of total land have been held steady, with 29% appraisal price increasing and the remaining 1% declining, said Wilawan Veerakun, deputy director-general of the Treasury Department.
Kamphaeng Phet province had the biggest increase with the appraisal price of land climbing by 200% from its current version. However the prices for Kamphaeng Phet had not been adjusted for two rounds and now is on par with other provinces, Ms. Wilawan said.
The upcoming land and building tax is replacing the house and land tax and local development tax, which have been under criticism for being outdated. The new land appraisal method will assist in this transition.
Under the new version the appraised price of land in Chidhom, home of Siam Paragon, and Ratchadamri has the highest average said Ms. Wilawan. These areas have a range of 900,000-1 million baht per square wah.
The average price increased 8-10% for land along the electric train lines, she said.
To avert price speculation the new appraisal price for land in the Eastern Economic Corridor will not increase much. This is due to that basic infrastructure projects have not been finished, Ms. Wilawan said.
Typically the Treasury Department’s land appraisal prices are adjusted every four years. However the department can change appraisal prices if the market price increases noticeably.
Ms. Wilawan also said that the department is planning to ask the private sector to boost development of state land over the next five years with an estimated investment of 72 billion baht.
Under the public-private partnership scheme, 38 billion will derive from joint investments, with 30 billion involving large companies and the remaining 8 billion handled by smaller contractors.
Several large projects are being pursued by the department, including the expansion of Queen Sirikit National Convention Center worth 6 billion baht, construction of a boutique hotel on the east bank of Chao Phraya worth 1.6 billion baht and development of a project worth 26 billion baht in Mor Chit.
During the 10 months to July the department’s revenue collection gathered 9.2 billion baht, Ms. Wilawan said, with this fiscal year’s revenue target of 9.8 billion baht being achievable.