Many factors besides location can influence what developers must pay for prime sites in central Bangkok, and Thailand's new land and buildings tax could further complicate the equation
In the property industry, it is the land market that leads the price trends for all sectors, from residential condominium prices to office and retail space rents. Given that the land price is often one of the largest components in a development project, it is the base that dictates property prices.
Many buyers wonder, for example, why condominium prices in Bangkok's central business district are constantly rising. Aside from the more premium design, specifications and services that new prime CBD developments offer, it is the developer's land acquisition cost that affects the price at the end of the day.