REIC: Land prices along MRT soar

Undeveloped areas scoped for increases

Undeveloped land along the MRT network saw the biggest price increase over the past five years, among those along electric train routes, reported the Real Estate Information Center (REIC).

Undeveloped land along MRT Blue and Purple lines, which are in operation, saw a 173.7% upsurge in prices in the final quarter of 2017 compared with the same period of 2012, averaging a 29% increase each year, the centre said in a statement.

Land along the Dark Red Line connecting Bang Sue to Hua Lamphong (yet to be opened) had the second-largest increase, jumping 170% over the five years to the fourth quarter of last year, a 28.2% average gain per year, said the report.

The price of undeveloped land along the Gold Line, stretching from the BTS Green Line’s Krung Thonburi station to Prachadhipok, soared 149% over the past five years, representing a 24.8% increase each year on average.

The fourth-biggest rise of undeveloped land prices along mass transit routes over the past five years was that of MRT Green Line project, linking Mo Chit to Khu Khot. Prices advanced 148.1% or 24.7% each year on average.

Fifth was undeveloped land along the Dark Red Line extending from Bang Sue to Thammasat University’s Rangsit campus, adding 144.3% over the past five years or averaging 24.1% per year.

The REIC’s study found that electric rail projects have big impact on the price of undeveloped land in Bangkok and its vicinity.

City’s zoning is another factor that affects price of vacant land in Bangkok and its outskirts — comprising Nonthaburi, Pathum Thani, Samut Prakan, Samut Sakhon and Nakhon Pathom.

The REIC’s study was based on information concerning ownership transfer of vacant land sized 200 square wah and larger, and land purchased by corporations as the information better reflects market prices than land purchased by individuals.

The REIC’s undeveloped land price index for Bangkok surged 12.5% yearon-year to 168.3 in the final quarter of last year. It also rose by 1.1% over three months from 166.5.

For the entire year of 2017, the undeveloped land price index stood at 165.6, up 13.2% from 146.3 in 2016.