Land prices in the Eastern Economic Corridor (EEC) have increased by more than 10 %, according to a senior official at the Treasury Department, who adds that its new land appraisals will be implemented for tax collection purposes next year.
On average, land prices nationwide have risen by 8.3 %, Wilawan Veerakun, deputy director general of the Treasury Department said, explaining that the department recently completed the new land appraisals.
Land prices in the EEC rose more than 10 % due to the government’s initiative to boost a new round of investment in Chonburi, Chachoengsao and Rayong. Meanwhile, price of land in Khampaeng Phet province has gone up 200 % though no rise has been recorded for the six years, she said.
The land price appraisal by the Treasury Department is used for tax collection purposes, but market price is usually much higher than the department’s evaluation.
Twenty-nine per cent of land parcels saw a price rise, 70 % remained unchanged from the previous appraisal while one per cent showed a decrease due to a new method of appraisal that uses digital technology to explore the details of each land parcel feature, she explained.
Tax collection is currently based on land valuations published in January last year, which saw a 32 million parcels of land evaluated. The new appraisal price will be used in 2020-2021 and covers 33.4 million land parcels.
The most expensive land prices are located in prime areas of Bangkok namely where Chidlom Road meets Rama I Road, around Paragon Department Store, and on Ratchadamri road, with each square wah (4 square metres) costing Bt1 million up from Bt 900,000.
The department will send the valuations of land parcels, buildings and condominiums to local governments in November, she added.
Sale of real estate in Thailand is subject to five tax items: 2 % transfer fee, 1 % lease registration (where mortgages are involved), 3.3 % specific business tax, 0.5 % stamp duty and withholding tax, for which rates vary depending on prices and period of ownership.