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Land Near Mass Transit Lines, SEZs to See Appraisal Prices Soar

By on Oct 28, 2015 in Investment-Land, Property News

New land appraisal prices in Bangkok for 2016-19 are estimated to rise by 15.8% on average compared with the previous rates in 2012-15, with the highest increases for plots along new mass transit lines, where prices will surge by 75% on average.

News-bkkpost_28oct

The new appraisal prices, however, will still be 30% lower than actual market prices.

Recent transactions in the Chidlom area averaged 1.91 million baht a square wah, while new land appraisal prices will be 1 million baht, Ekawat Manakeaw, deputy director-general of the Treasury Department, said yesterday at a seminar on the Greater Bangkok property market.

Land appraisals are 80% complete and should be finished by year-end, he said.

Nationwide, Mae Sot in Tak, a district earmarked for a special economic zone (SEZ), will have the highest increase in land appraisal price, which will be used starting on Jan 1, 2016.

The new appraisal price on Intarakhiri Road in Mae Sot will rise by 95% from the previous price for 2012-15.

“Mae Sot is one of the high-potential special economic zones, as it has industrial networks with intensive labour forces,” Mr Ekawat said. “It will also become an international logistics centre when Asean integration becomes effective next year.”

He said the average increase in land appraisal price for SEZ areas would be 40-50%, while the average increase nationwide would be 25%.

Mukdahan with its SEZ will have the second-highest increase, followed by Tak.

Nong Khai province is tipped to become an international transport centre and tourism magnet. Sa Kaeo province and Sadao in Songkhla also have potential for industry and logistics, Mr Ekawat said.

Warotai Kosolpisitkul, deputy director-general of the Fiscal Policy Office, said the new land appraisal prices would contribute to the government’s fiscal policies in 2016.

An inheritance tax will also take effect in February 2016 if nothing changes, he said.

The office is also studying reverse mortgage loans for the elderly, who could mortgage their existing home.

“The property market situation is in a good condition, as the existing supply will take 17 months to drain,” Mr Warotai told the seminar.

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Source: Bangkok Post – 28 October 2015

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