Why Smart Investors Keep Buying — Even When the Market Slows

10 reasons why land keeps gaining value — even in a downturn

Even during the height of the COVID-19 pandemic — when the economy slowed and consumer spending shrank — land prices in Thailand continued to rise.
Why is that?

Here are 10 key reasons why land remains one of the most resilient and appreciating assets:

1. Infrastructure Development Boosts Location Value

New mass transit lines, highways, expressways, utilities, and mega malls raise the profile of surrounding areas. Better access = higher demand = higher land prices.

2. Urban Expansion + Limited Supply

As cities grow and populations increase, demand for land goes up. But the total supply of land stays fixed — pushing prices higher, especially near city centers.

3. Inflation Drives Asset Appreciation

As inflation pushes up the cost of goods and services, land — like gold — acts as a hedge. Prices increase year over year to match the rising cost of living.

4. Speculative Holding / Land Banking

Investors often buy land and hold it — sometimes for years — waiting for value to appreciate. This reduces market supply and drives prices higher.

5. Land Doesn’t Depreciate Like Buildings Do

While homes and structures lose value over time due to wear and tear, land holds or increases in value, especially in key locations. That makes it a long-term wealth-preserving asset.

6. Zoning and Land Use Restrictions

Urban planning laws and zoning regulations limit what can be built in certain areas — reducing developable land. Scarcity equals higher price.

7. Foreign Investor Influence

Although foreign nationals can’t directly buy land, demand from overseas (via long leases, company structures, or investment vehicles) indirectly drives land values up, especially in cities like Bangkok, Phuket, and Chiang Mai.

8. Land as Loan Collateral

Banks and lenders are more willing to provide high-value loans backed by land. This gives landholders liquidity options and makes land attractive for financial leverage.

9. Each Transaction Resets the “Market Price”

Every sale at a higher price becomes the new benchmark for nearby land plots. Prices rarely drop, unless in cases of major, unusual crises.

10. Mindset: “You Can’t Make More Land”

Many buyers rush to purchase land out of fear that they’ll miss out — or because they believe, “It’ll only be more expensive tomorrow.”
This fear of scarcity feeds demand and keeps prices climbing.

💬 “Land doesn’t grow. But its value does.”
Real Value. Real Trust. – TDD57