The land price index in Greater Bangkok rose in the first quarter of 2023 with a double-digit increase, driven by land price hikes on the outskirts of the capital.
Vichai Viratkapan, acting director-general of the Real Estate Information Center (REIC), said the rise in land prices on the outskirts of Bangkok was higher than those in inner city locations.
"The top five locations securing the highest year-on-year increase in the price index of vacant land were all located outside of Bangkok," he said. "The growth rates were between 25.7% and 68.2%."
These locations were Nakhon Pathom at 68.2%, Bang Phli-Bang Bo-Bang Sao Thong in Samut Prakan at 52.4%, Samut Sakhon at 39.1%, Muang Pathum Thani-Lat Lum Kaew-Sam Kok with 28.7%, and Muang Nonthaburi-Pak Kret at 25.7%.
"The significant reason for a spike in these locations was due to the low base price," said Mr Vichai. "Due to the affordable land prices, these areas are suitable for developing low-rise houses at prices that are affordable and meet mass demand."
Investment in property development along the existing and future mass transit lines has also contributed to a surge in land prices in those areas.
The highest year-on-year increase in the price index of vacant land among all locations near the current and future mass transit lines was in areas near the Purple Line, which runs from Bang Yai in Nonthaburi to Tao Poon, with a growth of 9.8% to 420.8 in the price index.
The districts of Muang and Bang Bua Thong in Nonthaburi had the highest increase in this location.
The second-highest increase was in areas near the Green Line running from Ku Kot to Lam Luk Ka in the future, with a rise of 9.2% to 339.8. The Lam Luk Ka district had the highest increase in this location.
The third was the Green Line from Mo Chit-Saphan Mai-Ku Kot and the Red Line from Bang Sue to Thammasat University's Rangsit Campus, with a 7.8% increase to 446.5 and 439.6, respectively.
The highest increase was in Don Mueang and Bang Khen districts in Bangkok and Khlong Luang district in Pathum Thani.
The fourth was the MRT from Bang Sue to Hua Lamphong and the Dark Red Line from Bang Sue to Rangsit, which is a future line, with a growth of 7.5% to 474.0 and 466.6, respectively.
The highest increases were in Chatuchak, Huai Khwang and Ratchathewi districts.
The fifth was the future Dark Red Line from Hua Lamphong to Maha Chai, with a rise of 6.4% to 441.1. The highest jump was in Muang Samut Sakhon and Bang Khun Tien districts.
In the fourth quarter of 2022, inner-city Bangkok ranked fourth in the top-five highest year-on-year increases in the price index of vacant land, securing an upgrade in price at 16.6%.
The top three locations were in Samut Prakan, Nonthaburi and Pathum Thani.
REIC reported that the price index of vacant land in Greater Bangkok rose to 385.7 in the first quarter of 2023, a 13.1% increase from the same period in 2022 and a 1.1% increase from the fourth quarter of 2022.
This marks the third consecutive quarter of double-digit year-on-year increases, continuing from 12.5% in the fourth quarter of 2022 and 10.3% in the third quarter of 2022.