My Thailand Guide

Archive for March 12th, 2010

Latest property estimates to be proclaimed starting next year will be based on market price data as well as projections of economic growth and inflation rates.

The purpose is to guarantee that values depict as closely as plausible real market stipulations, according to Amnuay Preemanawong, the deputy director-general of the Treasury Department.

Estate estimates set by the Treasury Department and the Land Department are used as a baseline not only for market bargain proceedingses, but also for tax intentions and collateral assessments by local financial institutions.

Estimation are revised every four years on a nationwide principle, with the newest values to take come into force from 2008 through 2011.

The Treasury Department, which conducts public lands on behalf of the government, is responsible for accomplish the estimation survey.

For the new survey, the department has rend its work into three phases.

First it will update values for land plots that are already in state databases, based on the most current transaction data for near properties as well as economic data over the prior three years.

Second, it will appoint estimates for 400,000 plots for the first time, mostly representing sites in Surin, Chiang Rai and Buri Ram provinces. The third phase will concern assessing values based on wholesale blocks.

Ultimately, the department hopes to collect a nationwide database with price and geographic report both for particular plots as well as broader blocks.

The incipient survey is expected to be finished in July, after which the department will meet with provincial working groups to finalize the observations starting from August.

Mr Amnuay said the new estimates would not perforce result in increases in all areas, specially in provincial areas.

The department follows 28 million property plots nationwide, of which two million are located in Bangkok.

All real property in Bangkok has already been classified on a plot principle, even though most provinces still have estimates based on block zones.

Estimations in some districts, for example Silom and Yaowarat roads in Bangkok, mostly post little vary from one survey to the next, due in part to the comparatively few transactions registered in the market.

In consequence, official estimates in some of the most expensive areas of Bangkok are listed at around 600,000 baht per square wah, even though private valuers would allocate values of up to one million baht for the same plot.

For districts with comparatively few market transactions to serve as a baseline, the Treasury Department will turn to other indices to evaluate land values, such as rental and lease rates for an area and values attached to comparable plots in the district.

Under the latest estimate schedule, first used in 2004 and set to expire this year, the top values have been assigned to lands along Silom Road, at 340,000 to 600,000 baht per square wah.

Yaowarat Road in Chinatown is valued at 260,000 to 510,000 baht per square wah, and Thaniya Road off Rama IV is valued at 340,000 to 510,000 baht.

The public can get information on the estimation process, including data for individual plots, on the Treasury Department website: http://www.treasury.go.th