Bangkok's Siam Square land 'overpriced'

Construction News

A veteran real-estate valuer on Wednesday played down reports that land prices in the Siam Square-Chidlom-Phloenchit area have risen to a record two million baht per square wah, saying the figure was exaggerated.

The most expensive land in Thailand is found around Siam Square, Chidlom and Phloenchit.

Sopon Pornchokchai, president of the Agency for Real Estate Affairs (AREA), a real-estate information centre, said land prices in the area rose to 1.5 million baht per talang wah, or 600 million baht a rai, last December, based on highest and best use analysis of the property.

According to AREA’s latest analysis of changes in Bangkok land values, the figure had not yet reached two million baht per square wah. Property values in the area are believed to be the highest in Thailand.

Mr Sopon said the prices are expected to increase to about 1.7 million baht per talang wah by year’s end.

Mr Sopon said he wanted the public to use up-to-date figures for a correct understanding, to prevent potential investors from being lured by distorted real-estate price trends.

AREA research showed the Siam Square-Ploenchit area land prices rose from 400,000 baht in 1994 to 1.5 million baht per square wah last year, a rise of about 285 per cent.

The price increase came mainly from the presence of two BTS Skytrain lines, Sukhumvit and Silom, in the city’s busiest central business district, with extensions planned to outlying areas.

Prices would continue to rise, AREA said.

Mr Sopon is also an adviser to the Appraisal Foundation in Washington, DC, and the country representative of the Chicago-based International Association of Assessing Officers.


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