Thailand has seen a consistently rising interest in its property market, particularly from Asian buyers, resulting in an exponential increase in land prices over the last three years.
Due to heightened interest from foreign property buyers in Thai Property , the coastal regions preferred by tourists are seeing the highest price hikes with land values along Patong beach in Phuket trebling since 2011.
Land in prime coastal areas such as Patong is currently commanding a whopping €2,750/sqm, the highest land prices in Thailand, according to the Agency for Real Estate Affairs .
Mr Sophon Pornchokechai, CEO of the Agency said that continuous survey of land prices in Phuket during the past ten years showed that values on the island have increased rapidly and steadily.
Land values in Phuket increased by an average 14% during 2014
Land values in Phuket increased by an average 14% during 2014, cooling down somewhat after 2 years of almost frenzied growth that saw prices increasing 32% annually.
The increase in land prices has largely been due to consistently rising foreign demand and the consequent land shortage in certain areas is encouraging developers to look to other regions in Thailand.
Lawrence Knowles, project director for Thailand-based developers Sea Saran commented: " We have seen land prices rising particularly in areas where there has been a lot of foreign demand, mainly Pattaya, Bangkok and Phuket ".
" However, despite land shortages in prime coastal areas, there is no sign of demand for property abating. Developers are now looking at less expensive areas along Thailand’s 3,219kms of picturesque coastline or inland, close to transportation links for investment opportunities with good value potential, " he added.
On average, land along Thailand’s western coast is more expensive than the eastern coast due to its popularity with tourists. With Thailand’s government committing a massive €72bn to infrastructure development, the eastern coast is likely to benefit hugely and as more coastal land becomes accessible to tourists, values will inevitably increase.
Source: Property show rooms