A featured image of ‘Koh Kradan’ is shown, which depicts the world’s best beach according to the World Beach Guide website rankings. The island is situated in the Kantang District of Trang Province and spans 600 rai. The public land on the island is part of a national park while only a small portion of the land is private. The price of land in the area has previously fallen by a few hundred thousand baht per rai before being listed for sale at 10 million baht per rai or 25,000 baht per square wah. An expert in property appraisal, Mr. Sopon Pornchokchai, has suggested that approximately 3 rai of land on the island may be utilized and 60% or 1.8 rai (720 square wah) may then be used for building a rental resort. This would allow for the construction of 24 houses with an area of around 30 square meters per house to be rented for 5,000 baht per house, generating an income of 21.9 million baht per year with an occupancy rate of 50%. At a net income of 30%, the resort’s value would be approximated at 82.125 million baht with a land price of 7.375 million baht per rai or 18,434 baht per square wah. It is advised that investors should not buy land at a higher price to avoid issues with profits in the long run.
Look at land prices on ‘Koh Kradan’, the best beach in the world.
Suddenly, ‘Koh Kradan’ is located far from the coast of Kantang District, Trang Province, with an area of 600 rai. 2023 “World’s Best Beach” according to the World Beach Guide website rankings.
Read: Koh Kradan won the 1st place ‘The Best Beach in the World’ in 2023, 4 other places in Thailand are also in a row.
People began to pay attention that the area How are project developments and land prices currently trading?
Mr. Sopon Pornchokchai President of the Thai Real Estate Research and Valuation Information Center, Agency for Real Estate Affairs Co., Ltd. (AREA), revealed that part of the land on Koh Kradan is public in the form of a national park and only a small part is is private land
According to past news, the price of land fell a few hundred thousand baht per rai. But later it was called for sale at 10 million baht per rai or 25,000 baht per square wah. In fact, there should be a selling price. (that is sold legally) is about how much is the price?
As a property appraiser, he remarked as follows:
1. Suppose there is about 3 rai of land. 2. Take 60% of the land or 1.8 rai (720 square wah) to build a resort for rent. The rest is common area.
3. If one house has an area of about 30 square meters, it can build 24 houses. 4. If one house can be rented for 5,000 baht, with a occupancy rate of 50% (with limited tourism season), it will generate income of 21.9 per year. million baht
5. If the net income is at 30%, it’s 6.57 million baht. 6. At the rate of return of 8%, the value of the resort would be 82.125 million baht.
7. Less home construction cost And including the cost of various utilities, 2.5 million baht per house, 24 houses, will be 60 million baht.
8. Therefore, the land price is 22.125 million baht (82.125 – 60 million) or 7.375 million baht per rai or 18,434 baht per square wah.
If an investor buys at a higher price, it may have problems making profits in the long term.
In conclusion, land prices on Koh Kradan, the world’s best beach, have been a topic of interest among many investors. As stated by Mr. Sopon Pornchokchai, the president of the Thai Real Estate Research and Valuation Information Center, the estimated land price is 7.375 million baht per rai, or 18,434 baht per square wah. It is important for investors to consider this information before purchasing any land on the island to ensure long-term profitability. With Koh Kradan’s increasing popularity, it is crucial to make wise investment decisions to capitalize on the island’s growth potential.