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Tycoons Sell Land at 50% Discount Amidst Economic Slowdown & Tax Changes

Tycoons Sell Land at 50% Discount Amidst Economic Slowdown & Tax Changes

Matichon•Economy•16d ago

Reader Briefing

Thailand's real estate market sees significant price drops of 30-50% as landowners sell off assets to manage liquidity and tax burdens, creating opportunities for buyers.

  • •Land prices in Thailand are experiencing unprecedented drops of up to 50% due to economic stagnation and a new land and building tax.
  • •Wealthy landowners and developers are liquidating plots to manage cash flow, reduce tax liabilities, and avoid penalties for idle land.
  • •The current market conditions favor buyers, with significant negotiation power not seen in 30 years.
  • •Convenience store chains are actively seeking long-term leases in prime locations due to the availability of land.

Overview

  • •The Thai real estate market is facing a prolonged slowdown, with land prices undergoing major changes for the first time in 30 years since the Tom Yum Kung crisis.
  • •Wasan Kongchan, President of the Real Estate Sales and Marketing Association, stated that currently, there are only offers for vacant land in Bangkok, surrounding areas, and major cities, with no closed deals.
  • •Land prices in some areas have dropped by 30-50%, with examples including Soi Punnavithi reducing from 1.3 million THB per square wah to 1 million THB, and Bang Khae reducing from 300,000 THB per square wah in 2024 to 150,000 THB per square wah after negotiation.
  • •Landowners are selling land to convert assets into cash, improve liquidity, and reduce tax burdens, especially when idle land may incur double penalties.
  • •Land prices began to decrease in mid-2025 and are expected to continue declining.
  • •The economic slowdown, the impact of war and oil prices, and the full imposition of land and building taxes are driving landowners to sell.
  • •Major real estate companies like Sansiri, AP Thailand, Supalai, and AssetWise are focusing on selective location development.
  • •Isara Boonyung, Honorary President of the Housing Business Association, noted that land is the best asset to beat inflation but also the least liquid.

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Source: Matichon (Original)

Key Quotes

Wasan Kongchan
"Overall, land sales in Bangkok, surrounding areas, and major cities currently only have offers, no deals are closed."
ภาพรวมซื้อขายที่ดินเปล่าในพื้นที่กรุงเทพฯ ปริมณฑลและเมืองใหญ่ในปัจจุบันมีแต่การเสนอขาย ยังไม่มีปิดดีลซื้อ
Wasan Kongchan
"Some plots want to close deals quickly, so prices will be reduced, both in the city and outskirts."
บางแปลงต้องการปิดดีลเร็ว จะลดราคาลง ทั้งที่ดินในเมืองและรอบนอก
Wasan Kongchan
"This is the first time in 30 years that land prices have dropped 30-50%, since the Tom Yum Kung crisis."
ถือเป็นครั้งแรกรอบ 30 ปีที่มีการลดราคาที่ดิน 30-50% นับจากวิกฤตต้มยำกุ้ง
Isara Boonyung
"This is a good opportunity for convenience stores that want to open branches in prime locations, on main roads, near communities."
เป็นโอกาสดีของร้านสะดวกซื้อ ที่ต้องการเปิดสาขาในทำเลศักยภาพ ติดถนนสายหลัก ใกล้ชุมชน
Isara Boonyung
"Some land plots accept reduced sale prices. This is likely a temporary situation, following market and economic conditions."
ราคาที่ดินบางแปลงยอมลดราคาขายลง คงเป็นสถานการณ์ชั่วคราว ตามภาวะตลาดและเศรษฐกิจ
Isara Boonyung
"Compared to other assets, land is considered the best asset to beat inflation, but it is also the least liquid asset."
เมื่อเทียบกับสินทรัพย์อื่น ๆ ที่ดินถือว่าเป็นสินทรัพย์ที่เอาชนะเงินเฟ้อได้ดีที่สุด แต่ก็เป็นสินทรัพย์ที่มีสภาพคล่องต่ำสุดเช่นกัน

Key Entities

Organization

Prachachat Business(ประชาชาติธุรกิจ)
A Thai business newspaper that reported on the real estate market trends.
Real Estate Agents(นายหน้า)
Intermediaries involved in the sale and offering of land in the current market.
Sansiri Public Company Limited(บมจ.แสนสิริ)ℹ️
A major real estate developer identified as one of the few with the financial capacity to purchase land.
AP (Thailand) Public Company Limited(บมจ.เอพี ไทยแลนด์)ℹ️
A prominent real estate developer listed among the companies with the financial strength to acquire land.
Supalai Public Company Limited(บมจ.ศุภาลัย)ℹ️
A leading real estate developer mentioned as having the capacity to purchase land amidst market shifts.
AssetWise Public Company Limited(บมจ.แอสเซทไวส์)
A real estate development company included in the group of major players with purchasing power.
Kanda Property Co., Ltd.(บริษัท กานดา พร็อพเพอร์ตี้ จำกัด)
A property development company mentioned in relation to long-term land leases for convenience stores.

Person

Wasan Kongchan(วสันต์ คงจันทร์)
President of the Real Estate Sales and Marketing Association, providing insights on current land market conditions.
Landlords(แลนด์ลอร์ด)
Large landowners actively selling off their properties.
Isara Boonyung(นายอิสระ บุญยัง)
Honorary President of the Housing Business Association and Managing Director of Kanda Property Co., Ltd., commenting on market dynamics and tax impacts.

Place

Bangkok(กรุงเทพฯ)ℹ️
A major metropolitan area in Thailand where land sales are being heavily impacted.
Punnavithi(ปุณณวิถี)
A specific area in Bangkok mentioned for its significant reduction in land prices.
Bang Khae(บางแค)
A district in Bangkok where recorded instances of land price reductions are highlighted.
Rama 2 Road(ถนนพระราม 2)
A road where Kanda Property has land parcels available for long-term lease.
Kanlapaphruek Road(ถนนกัลปพฤกษ์)
A road mentioned as having Kanda Property land available for convenience store leases.

Law

Land and Building Tax(ภาษีที่ดินและสิ่งปลูกสร้าง)
A tax policy in Thailand that is influencing landowners to sell or develop their properties.