Weekly Thai Real Estate News Roundup, Week 44, 2023
Bangkok land prices rose by 3% in Q3 2023
Bangkok's land price index rose by 3% year-on-year in the third quarter of 2023, the lowest growth rate in seven quarters.
There were several factors that affected land transactions, most notably the interest rate increase to 2.5% since September 27th.
Other factors impacting home purchasing power include loan-to-value (LTV) limits reverting to normal levels earlier this year along with household debts exceeding 90% of the GDP.
With no drastic reduction in land and building tax this year, demand among developers to accumulate land also decreased as a result.
Meanwhile, Q3 land prices for sky train-adjacent areas saw a marked increase in land prices in comparison to Q3 of last year. The following are the five primary sky train lines which saw land price increases:
- Green sky train line (Bearing-Samut Prakan, Samut Prakan-Bang Poo): 17.9% land price increase.
- Light Red sky train line (Taling Chan-Salaya): 15.5% land price increase.
- Blue sky train line (Bang Khae-Phutthamonthon Sai 4): 14.9% land price increase.
- Blue sky train line (Hua Lamphong-Bang Khae), Gold sky train line (Thon Buri-Pracha Thiphok), Orange sky train line (Taling Chan-Cultural Center): 8.6% land price increase.
- Light Red sky train line (Bang Sue-Taling Chan): 8.3% land price increase.
Source:
https://www.bangkokpost.com/property/2676313/bangkok-land-price-index-up-3-in-q3
https://www.thansettakij.com/real-estate/579998
The Call for Clearer Environmental Reports from Condo Developers
Condo developers called for clearer environmental impact assessment (EIA) report reviews in hopes of reducing biased judgements.
This was because a delayed assessment process increases development costs and wastes time. Mr. Ditawat Issara, assistant managing director of Chan Issara Development, said certain EIA committees occasionally raise situational or unique issues during the evaluation process.
There were many complaints on the EIA reports for high-rise projects, particularly from people living nearby who wish to protect their rights.
Source: https://www.bangkokpost.com/property/2675578/developers-call-for-clearer-environmental-reports
Condo and Office Building Recovery reflected in New Data
According to Commerce Ministry data, Juristic person businesses for condos and offices thrived thanks to the country's recovering economic, tourism, and real estate growth. Data from the Land Department also recorded over 53,000 condo transfers in the first six months of 2023.
These figures reflect a growing trend of establishing juristic persons for condo and office buildings to manage shared spaces.
Contractors push for tax incentive from the Government
Mr. Olran Chanphu, president of the Home Builder Association, stated that the government should offer personal income tax deductions for self-built home buyers. Proposed was a rate of 100,000 baht per 1 million baht of home construction and a maximum deduction of 100,000 baht.
According to the association, the government tax incentive offer can contribute to the economy, increase stamp duty revenue, and deter irresponsible builders.
Source: https://www.bangkokpost.com/property/2674771/contractors-push-for-tax-incentive
