The Sirivadhanabhakdi family has emerged as Thailand's largest landlord, with 630,000 rai, according to a survey.
Thapana Sirivadhanabhakdi (right) gestures to his billionaire father Charoen during the ThaiBev Expo 2012 in Bangkok in September 2012.
Trailing it were the Chearavanonts, who own a combined 200,000 rai.
Coming third was United Palm Oil Industry Plc, a palm oil producer with large plantations in Krabi and Surat Thani, with 44,400 rai.
The Crown Property Bureau came fourth, with 30,000 rai.
The survey was conducted by Local Action Links (Local Act), a non-government organisation focusing on strengthening farmers' networks, especially landless ones.
Among politicians, Amnat Klangpa of Pheu Thai led the group, with 2,030 rai, followed by Banharn Silpa-archa of Chartthaipattana (2,000 rai) and Sanoh Thienthong of Pheu Thai (1,900 rai).
The Finance Ministry is pushing the land tax law to take effect within one year, hoping to generate 90 billion baht a year for local administrations.
Prachachart Turakit reported on Wednesday the survey, which is based on title deeds at the Land Department.
It found these large landlords own plots all over the country, especially in large cities and tourist destinations.
The manners of purchases are mixed. Some gradually built their land banks while others bought them in blocks using brokers and their business networks.
Notably, they have changed the way they kept the land in recent years.
In the past, large landlords tended to leave the plots idle but over the past 4-5 years, they have turned them into farms, especially rubber, palm trees, fruit and other economic plants.
The change was probably triggered by efforts to push the progressive land tax for undeveloped land.
The trend is also evidenced in the changing business structures of these families and organisations toward more property development and farming.
Meet the landlord
The survey found the Sirivadhanabhakdi family, whose businesses range from liquors and drinks to property development, holding the most land of 630,000 rai, both directly and indirectly through their companies.
The major pieces of their landbank are a 12,000-rai plot in Cha-am, Phetchaburi province, and a 15,000 rai plot in Bang Ban, Ayutthaya province.
Earlier, Somapat Traisorat, CEO of TCC Land Co Ltd and Mr Charoen's son-in-law, said the family had hundred thousands of rai in Thailand but it was not easy to count due to ongoing projects and developments.
Next on list
Coming at a distant second is the Chearavanont family of tycoon Dhanin, who owns the CP integrated agribusiness conglomerate, CP Land property developer and True Corp, with more than 200,000 rai.
The crown jewel of his land bank is a 10,000-rai plot in Ayutthaya.
United Palm Oil Industry Plc also has 44,000 rai, followed by the Crown Property Bureau with 30,000 rai, 7% of which has been rent for commercial use.
Wichai Poolvararuk, founder of the EGV cineplex who became developer with Woraluk Property Co Ltd, has up to 8,000 rai, including 3,000 in Karnchanaburi.
The Jurangkool family, which owns Summit Corporation, an auto-parts manufacturer, has 5,000 to 6,000 rai including Summit golf courses in Bang Na and Chiang Mai and 100 rai in Phuket.
Paiwong Techanarong, founder of Bonanza resort, has 5,000 rai in Khao Yai, Nakhon Ratchasima.
Some developers such as Keeree Kanjanapas, CEO of BTS Group Holdings Plc, also has at least 1,000 rai in his land bank while Property Perfect Plc, a SET-listed developer, owns 2,000 rai nationwide.
Politicians’ portfolios
Politicians are another group with vast land in hand.
Amnat Klangpa, a former Pheu Thai MP, has 2,030 rai while former prime minister Banharn Silpa-archa has 2,000 rai on Bangkok's Charan Sanitwong Road and in Nonthaburi province.
Sahoh Thienthong of Pheu Thai and his wife have 1,900 rai, while Anucha Burapachaisri of the Democrat party has 1,284 rai.
Others are Adisak Pokskulnanont (1,197 rai), Tossaporn Thepabut (Democrat, 1,095 rai), Attawich Suwanpakdee (Democrat, 1,095 rai), Suchon Champoonot (Pheu Thai, 1060 rai), Chai Chidchob (Bhumjaithai, 854 rai) and Monthon Kraiwatnusorn (Pheu Thai, 755 rai).
Too much too little
Of Thailand's total area of 319.82 million rai, 40% or 130.74 million have title deeds.
The rest are reserved forests (144.54 million rai) and plots under the supervision of the Agricultural Land Reform Office and state property land (9.78 million rai), according to the 2012 research by Asst Prof Duangmanee Laowakul, a lecturer at Thammasat University's Faculty of Economics.
Some 15.9 million of Thais owned land of whom 15.68 million were individuals and 212,000 juristic persons or companies.
Interestingly, 285,000 individuals and juristic persons owned 1-10 square wah in 2012, accounting for 1.8%. Of this group, 284,000 were individuals.
At the other end of the scale, 837 individuals and juristic persons had 1,000 rai or more, accounting for 0.01% of all land. Of this group, 359 were individuals.
The largest group of 3.48 million was land owners with 1-5 rai, representing 21.9% of all land owners. Of this group, 3.43 million were individuals.
New land tax
Pongthip Samranjit, director of Local Act, told Prachachart Turakit the proposed tax on undeveloped land at 0.5% of appraised prices, double every three years but capped at 2%, was too low.
This is because the average land price increase, at 4-6% a year, is still higher than the maximum tax rate.
For land holding to be distributed more evenly, the tax must be comparable to the average price increase.
A higher rate — 5% in countries such as France, South Korea and Japan — could apply only to those owning a certain amount of land.
"The proposed tax structure won't solve land problems. A progressive rate based on land holding could help," she said.
The land tax draft is among the laws the Finance Ministry is proposing the National Council for Peace and Order (NCPO) for consideration.
If approved, it will push for its enforcement within one year.
The law had already been vetted by the Council of State in 2011 during the Abhisit Vejjajiva government, but was dropped when the House of Representatives was dissolved.
Enriching communities
Under the draft, the tax rate for commercial use of land and buildings is not more than 0.5% of appraised prices.
For houses and residential units, the rate is up to 0.1% while 0.05% is for farm land.
For undeveloped land, the same rate as commercial land and buildings applies for the first three years, to be doubled every three years but not more than 2% in total.
The ministry hopes once the new law takes effect in stages, local administrations will get 45.12 billion baht when 50% of the rates apply in the first stage.
When 75% of the rates apply in the next stage, the forecast revenue would be 67.69 billion, rising to 90.25 billion when the full rates are used.
Source: Prachachart Turakit