A technical change in how Thailand values land for official purposes is about to affect what Phuket property owners can borrow, what they pay in tax and what buyers pay in transfer fees.
The Treasury Department is adjusting its official land appraisal price to move closer to actual market values, according to director-general Akkaruth Sandhyananda. The department’s current appraisal sits 30-40% below market prices. The target is to narrow that gap to 20-25% below market.
The change matters because Thailand’s official land appraisal price is used for three things: calculating loan collateral values, setting annual land and building tax and determining land transfer fees.
What changes for property owners
The upside is larger loans. Land owners using their plots as loan guarantees can obtain higher loan values from financial institutions when the official appraisal rises.
The downside is higher taxes. Annual land and building tax levies will increase. Transfer fees on sales and purchases also rise, since those fees are calculated from the official appraisal price.
The department appraises land values every four years. The current rate runs through 2026. The new rate takes effect from 1 January 2027 and runs through 31 December 2030. Provincial committees handle appraisals in each province.
The international benchmark
Akkaruth said the international standard is an official land appraisal price 15% lower than present market value. Thailand is moving closer to that benchmark, though still above it.
The gap matters because official valuations that sit too far below market can distort tax revenue, undervalue collateral and create room for underreporting in transactions.
Current appraisal range across Thailand
The current appraisal values show wide variation. Bangkok’s highest average plot price is 1 million baht per square wah. The lowest in Bangkok is 500 baht per square wah.
In the provinces, Songkhla records the highest price at 400,000 baht per square wah and the lowest at 35 baht per square wah. Chiang Mai’s highest is 250,000 baht per square wah, with a low of 25 baht per square wah.
Surat Thani saw the largest increase for the 2023-26 period, up 117% from the previous four-year measurement.
The Treasury Department did not provide specific appraisal data for Phuket in the announcement.
What the land transfer data shows
Vacant land transfers nationwide totalled 115,000 plots in the first quarter of this year, down from 123,000 year-on-year. These figures include only land with full ownership and Nor Sor Gor 3 certificates.
The Nor Sor Gor 3 certificate grants the legal right to possess and use land, but is not full freehold ownership.
Transfers of vacant land rights last year totalled 465,000 plots, according to the department.
Why this matters for Phuket property
For Phuket land owners, the adjustment creates a trade-off. Those seeking to leverage land for investment or development financing gain access to larger loans. Those holding land long-term face higher annual tax obligations.
For buyers, the change adds cost at the point of transfer. Transfer fees, already a factor in Thailand property transactions, will rise in line with the new appraisal values from 2027.
The practical question is how much provincial appraisals in Phuket will shift. Land values in prime coastal and hillside locations already command strong market prices. The question is whether official appraisals will rise proportionally across different zones, or whether high-demand areas see larger adjustments.
The detail worth watching is the work of the provincial committee responsible for setting Phuket’s new appraisal rates ahead of the 2027 implementation.
Frequently Asked Questions
When does the new land appraisal rate take effect?
The new rate takes effect on 1 January 2027 and runs through 31 December 2030. The current appraisal rate applies through 2026. Thailand reappraises land values every four years.
What does this mean for Phuket property owners?
Owners can obtain higher loan values when using land as collateral, but will pay higher annual land and building tax. Buyers and sellers also face increased transfer fees, since those are calculated from the official appraisal price.
How much will official land appraisals increase?
The Treasury Department is narrowing the gap between official appraisal and market price from 30-40% below market to 20-25% below market. The exact increase depends on provincial committee decisions for each location.
Does this affect foreign buyers in Phuket?
Foreign buyers purchasing land through permitted structures or purchasing buildings will face higher transfer fees under the new appraisal rates. The tax and loan implications depend on ownership structure and use.
What is the international standard for land appraisal?
According to the Treasury Department director-general, the international standard is an official land appraisal price 15% lower than present market value. Thailand is moving closer to that benchmark.
Sources
- Bangkok Post — Property — Treasury seeks narrower gap in land appraisal prices — link
