Building owners choose to sell up as taxes start to bite

The land and building tax is continuing to force outdated and less competitive offices, apartments and hotels to exit the market, with many putting their assets up for sale or lease in the tourism sector.

- KANANA KATHARANGSIPORN

Wutthiphon Taworntawat, managing director of commercial property developer UHG, said the tax still influences landlords' decisions to lease out their properties, particularly older hotels and apartment buildings.

"The tax is calculated based on the appraised value of land and buildings, which has significantly increased costs for some landlords compared to the period before it took effect," he said.

While some landlords choose to renovate their properties to boost income, many do not. Owners of older apartments in particular are often reluctant to invest in upgrades, even if they could generate higher returns, said Mr Wutthiphon.

Similarly, small-scale hotel owners with just one or two properties often opt to exit the market, as their limited scale makes operations unviable.

Meanwhile, office landlords with less competitive assets face challenges attracting tenants in an oversupplied market, where newer developments offer more competitive rates.