Land prices in the Sukhumvit area from Phloenchit Road to Soi Thong Lor have risen 340 percent in the last decade.
Land plots in Bangkok?s prime locations are in high demand from property developers and non-property developer investors. Land prices in the city are climbing by 15 percent per year on average, reported the Bangkok Post.
Demand is high because buyers want to develop condominiums, offices and private homes, according to Kulwadee Sawangsri, executive director for investment and land services at property consultancy firm CBRE Thailand.
?Land investment generates the highest yield among all property categories,? said Kulwadee.
Many people who have the funds prefer investing in land, as the year-on-year yield is approximately 15 percent, whereas income producing property yields 4-5 percent per year on average.
More non-developer investors are buying land each year, according to Kulwadee. Many buyers are second-generation children of business owners who already conduct projects professionally.
The greatest increase in land prices in the last decade has been in the vicinity of Sukhumvit, between Phloenchit Road and Soi Thong Lor (Sukhumvit Soi 55). Demand in these areas is very high according to Kulwadee.
Land prices in the area increased by 340 percent on average from 2003, to the average price of THB1.35 million (US$45,195) per square wah in 2012.
The next greatest price increases of land were in the Silom and Sathon area, were prices have risen by 330 percent to THB1.2 million (US$40,201) per square wah since 2003.
According to Kulwadee, the purchase of the British Embassy plot in 2006 was a turning point as it sold for THB900,000 (US$30,154) per square wah, while average market prices at the time ranged from THB600,000 (US$20,103) to THB700,000 (US$23,454).
In the outskirts of Bangkok land prices have also soared by 40 to 50 percent as a result of construction progress of mass transit lines.
Prime location, main roads and this year?s new city plan are top priorities for those investing in land, according to Kulwadee.
CBRE recorded THB8 billion (US$268 million) from 30 transactions in 2012, up from 15 transactions worth THB 3 billion (US$100.4 million) in 2011.
CBRE expects the value of land and the number of property transactions to grow by 30 percent in 2013.
Despite soaring land prices in Bangkok, last year CBRE registered even greater price increases of up to 50 percent in Khao Yai, Nakhon Ratchasima province.
Source: http://www.property-report.com/land-prices-soar-in-bangkok-28024
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