Why does your THB 10 million house receive a bank valuation of THB 7 million, while the Land Department lists only THB 4 million?
Thailand's property market features three distinct valuation types—government-assessed values, bank valuations, and independent market valuations—each serving different purposes. Professional valuers help investors understand which value applies to specific decisions, ensuring informed financial strategies.
Understanding the Three Valuation Types
| Valuation Type | Responsible Organization | Prepared By | Sample Application |
| Government assessed | Land Department/ Treasury | Government appraisers |
Tax calculations and other related fees |
| Bank valuation | Bank | Licensed valuers for banks | Loan applications and service, refinancing |
| Market valuation | Real estate consultancy firm (Valuation) | Independent licensed valuers | Investing, buying, selling, accounting, and third-party reports |
Why Valuations Differ: Professional Perspective
Government values serve as tax bases, intentionally conservative (60-80% of market) and updated infrequently (every 4 years).
Bank valuations incorporate conservative safety margins (20-30% below market) to mitigate lending risk.
Market valuations represent true Fair Market Value based on willing buyer/willing seller principles.
Do you know the true Fair Market Value of your property portfolio today?
