The political crisis will depress the average increase in Greater Bangkok land prices in 2014 as government spending is delayed.
Sopon Pornchokchai, president of property consultant Agency for Real Estate Affairs (AREA), said growth in land prices for Bangkok and the vicinity this year is estimated at less than 3%, the lowest since 2010.
"No matter if [the political crisis ends with] reform or a coup, the property sector will inevitably see a negative impact and slowdown as the new government and budget are delayed, at least by six months," Mr Sopon said yesterday.
Land prices have risen every year since 2000. During the past 10 years, the lowest increase was in chaotic 2009 (2.9%). The average yearly increase during 2004-13 was 4.4%.
Other years when the average increase in land prices fell below 4% were 2008 (3.4%) and 2012 (3.7%). Prices rose by 4.6% in 2013.
The highest land prices in 2013 were once again in Siam Center, Chidlom and Phloenchit at 1.65 million baht per square wah (all land in the Siam Center area is leasehold). In Chidlom and Phloenchit, land available for new development is rare.
These three locations were followed by Siam Square (1.6 million baht per sq w), where all land is leasehold.
Land near the Times Square Building on Sukhumvit Road and in the Nana area went for 1.5 million baht per sq w on average, while Wireless Road and the Sala Daeng area saw an average price of 1.4 million baht.
The lowest land prices in Greater Bangkok were along Liap Khlong 13 Road at kilometre 5 in the Lam Luk Ka area of Pathum Thani (2,500 baht per sq w), a location quite far from the capital with insufficient facilities and roads.
Next cheapest was land opposite the Bang Sai Arts and Crafts Centre, which is remote and not zoned for large-scale and high-rise construction.
These two areas were among three where land prices dropped during 2008-13. The other was lightly populated Nong Chok.
Among 10 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 at 12.8%.
That was followed by locations along On Nut-Bearing (10.5%) and the Blue Line between Hua Lamphong and Bang Khae (10.1%). The average increase in the 10 locations was 8.9%.
"We should collect tax, particularly on land close to the mass transit system, where prices normally soar," Mr Sopon said.