Wednesday, March 21, 2007

Samui Land Prices - Land valuations surge to 7 times official prices on Samui


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Samui Land Prices - Land valuations surge to 7 times official prices on Samui

20/03/06

The land prices on Koh Samui have risen seven-fold over the past few years, driven in popularity by the shift in demand following the tsunami, according to Klayo Thongsom, director of the Property Valuation Bureau.

He said bids for a 30-rai development concession from the Treasury Development had seen valuations of over seven times the official prices set in 2004.

“The sharp rise in valuations comes due to the growing popularity of the Gulf of Thailand among Thais and foreign tourists, particularly Koh samui, following the tsunami,” Mr Klayo said.

The December 2004 tsunami claimed thousands of casualties a long the Andaman coast, while the Gulf of Thailand was completely unaffected.

The Property Valuation Bureau, a unit of the Finance Ministry, is assessing the value of 720,000 state-owned plots across the country to raise commercial returns from public land.

Plots near Suvarnabhumi Airport, scheduled to open later this year, are also set to be assessed in 2006.

Official valuations, used for tax purposes through the land Development, have traditionally lagged actual market prices.

The Treasury Development sees independent valuation as a way of ensuring the state maximizes returns from development concessions offered to private companies.

Rather than a block valuation approach which is used no, the government wants valuations carried out on a plot-by-plot basis, for a more accurate representation of the commercial value of a property.

The department has set a target to revalue 24 million state-owned plots nation-wide by 2013. Four million assessments have already been completed in the last year.

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