Mass transit has lifted the price index of vacant land in Greater Bangkok, signalling a recovery in the property market, with further price increases anticipated in 2025, according to the Real Estate Information Center (REIC).
REIC reported the price index of vacant land in Bangkok, Nonthaburi, Pathum Thani, Samut Prakan, Samut Sakhon and Nakhon Pathom reached 391.1 in the third quarter of 2024, reflecting a 2.9% year-on-year increase.
This growth rate is less than the five-year pre-pandemic average of 14.8% and marked the lowest year-on-year rise in 11 quarters, since the fourth quarter of 2021, when the index increased by 1.7%.
In the third quarter of 2024, property developers demonstrated confidence in the recovering residential market by increasing land purchases, particularly in areas near mass transit lines.
Vacant land in locations along mass transit lines was considered high-potential, according to the centre.
The top five locations with the highest year-on-year increases in the vacant land price index were primarily areas where transit lines are already operational or connect at least two lines. This includes along the Blue Line from Bang Khae to Phutthamonthon Sai 4, with a land price index of 458.8, marking a 7% increase.
The highest increases in land prices were observed in Bang Khae and Nong Khaem districts.
The second-highest increase in the land price index was in locations along the Blue Line from Hua Lamphong to Bang Khae (534.5), the Gold Line from Thon Buri to Prajadhipok (526.8) and the Orange Line from Taling Chan to the Cultural Centre (518.7).
All three locations posted a 6.4% rise in the index, with the highest increases in Phasi Charoen, Bangkok Yai and Bang Kapi districts.
Recording a 6.3% uptick in the index were locations along the skytrain Silom Line (503.6), the Blue Line from Bang Sue to Tha Phra (495.9) and the Dark Red Line from Hua Lamphong to Maha Chai (501.4).
Registering a 6.2% increase in the index were the average along the Blue Line subway route (552.4) and the Dark Red Line from Bang Sue to Hua Lamphong (543.8).
Posting a 5.8% rise in the index were locations along the Green Line from Mo Chit-Saphan Mai-Ku Kot (508.2) and the Dark Red Line from Bang Sue to Thammasat University Rangsit (500.3).
The changing rate of land prices along mass transit routes reflected increasing demand, driven by the availability of both operational transit networks and future development projects.
The trend of rising land prices was particularly evident in areas with multiple transit connections and key stations, noted the centre.
REIC forecasts land prices along mass transit routes will continue to grow, especially in areas where projects are under development or newly operational. These locations are in high demand for both residential and commercial purposes, according to the centre.