Land prices in Thai capital on an 'upward spiral'

Investors looking to bolster their property portfolio in the Asian market may be interested in news that land prices in the Thai capital of Bangkok have increased by 88 per cent in the last three years.

According to data released by Biswanger Brooker, the cost of land in prime locations in the centre of the city has spiralled upwards since 2007 and is predicted to continue doing so in the future.

Nigel Cornick, chief executive of the company, revealed that limited supply coupled with high demand were driving factors behind the increases.

In addition, recent activity in the market has been bolstered by the Thai government's decision to postpone the transfer fee, stamp duty and business tax on purchases until May 31st.

Mr Cornick said: "There is very strong demand for compact but high-end residential condominiums in downtown locations from the domestic market which is boosting land values.

"Some of the developers also plan to construct hotels on the prime plots, which further demonstrates that this is an asset class that local investors still have confidence in."

ReportBuyer.com predicted that last year Thailand would see a five per cent year-on-year growth in its tourism market.