Thailand’s ongoing political crisis has delayed government spending in 2014, curbing significant increases in Bangkok land prices, reports The Bangkok Post. Sopon Pornchokchai, president of property consultant Agency for Real Estate Affairs (AREA), said growth in land prices for Bangkok and its vicinity is estimated at less than 3 percent this year — the lowest rate since 2010.
From 2000, land prices in the capital have risen every year, with an average yearly increase of 4.4 percent. Prices rose by 4.6 percent in 2013; the highest prices were in the Siam Center (leasehold), Chidlom and Ploenchit areas at THB 1.65 million per square wah. These locations were followed by land in Siam Square (also leasehold) at THB 1.6 million per square wah; around the Times Square Building on Sukhumvit Road and in the Nana area at THB 1.5 million per square wah; and on Wireless Road and Sala Daeng at THB 1.4 million per square wah.
Prices normally soar for land located close to transportation routes. Among the ten locations along current and future mass transit lines, the highest increase in average land prices last year was along the Blue Line between Bang Sue and Tha Phra (12.8 percent). That was followed by locations along On Nut-Bearing (10.5 percent), and the Blue Line between Hua Lamphong and Bang Khae (10.1 percent).
This year, however, land price growth will likely be minimal. Mr. Sopon believes that, despite how the political situation is resolved, “the property sector will inevitably see a negative impact and slowdown as the new government and budget are delayed — at least by six months.”