The market price of land in three locations - Siam Paragon, and the areas in front of the Chidlom and Phloen Chit BTS stations - is estimated at 1 million baht per square wah or 400 million baht a rai, according to the latest survey by the independent property consulting firm Agency for Real Estate Affairs (AREA).
AREA managing director Wason Kongchan said the price of the Siam Paragon plot was 82% higher than in 2005, while it had been estimated at 800,000 baht per square wah early this year.
The agency said a few small plots had sold at 1.2 million to 1.5 million baht per square wah, such as a three-rai parking lot at Central Chidlom, two rai of empty land next to Center Point Witthayu, and one rai of empty land next to the Sukhumvit MRT station.
"These plots are small and considered as exceptional. Therefore, the highest estimated market price as of mid-2009 still remains at 1 million baht per square wah," said Mr Wason.
The second most expensive land price is 850,000 baht per square wah in areas around the Bangkok Bank headquarters on Silom Road and the Ratchadamri BTS station because they are close to mass transit and could be developed as grade A office buildings.
He said the market prices of the two locations were lower than the highest prices because the return on investment for grade A office buildings is still lower than for retail spaces.
Silom used to command the highest market prices at 500,000 baht per square wah in 1994 when the agency started preparing its benchmark prices. At that time, there were no mass transit systems; the BTS opened in december 1999.
Ranked third at 800,000 baht per square wah were areas around Yaowarat Road, Wireless Road and Sathon and Narathiwas roads, close to BTS stations.
The cheapest prices in the capital area are Lam Luk Ka Klong 13 at 2,000 baht a square wah or 1 million baht a rai for a plot sized at four rai.
AREA projects that land prices in Greater Bangkok will increase by 3% this year over 2008 and by another 2% next year but forecasts may change if further economic problems emerge.