Valuation prices for land on Bangkok’s outskirts could rise by up to 50% as new mass-transit routes arrive, according to Winai Wittawatkaravet, the director-general of the Treasury Department.
Demand from property developers for key plots along new light rail routes will be the main driver for higher valuations, judging from past price trends from the influence of the BTS Skytrain and the BMTA subway.
Official valuation prices are used in calculating property taxes and serve as an important benchmark for transactions in the market. Valuations are adjusted every four years, with the next adjustment to take effect from 2012 to 2015.
The Treasury Department’s property valuation bureau has already completed new assessments for 60% of the country’s 29.3 million property plots, of which Bangkok accounts for 1.9 million.
Preliminary analysis shows new valuations rising by 10-15% from existing ones, in line with the rise in market prices seen over the past few years.
The department also expects rental rates for public properties to rise in the next review in line with inflation, economic growth and property prices. It revises the rates every five years.