Among five main tourist destinations, the property market in Cha-am, Hua Hin and Pran Buri will be the first to pick up as it relies on Thai buyers, whose sentiment and confidence have resumed after last month's coup, says the property consultant Colliers International Thailand.
Sunchai Kooakachai, associate director of Colliers' provincial department, said a market recovery in these three beachside destinations on the peninsula is fastest, with condo units sized between 35-45 square metres and priced below 4 million baht, the best sellers.
"Thai buyers dominate this destination," he said. Last year the location recorded a take-up rate of 64% in the condo segment, followed by Pattaya and Phuket with 61% each, Chiang Mai (60%) and Khao Yai (55%).
"The most popular location for new property development is currently Hua Hin Soi 112 as the road is being extended to four lanes. Now it is 80% complete," Mr Sunchai said.
Land prices on this soi soared from 3 million baht a rai two years ago to 10 million, and wealthy families who bought land here include the Lippatapullop and Sarasin families.
But there is housing project on this soi named Lanaburi and owned by a Swedish investor that has been suspended and is on sale for 170 million baht.
"Foreign investors usually faced construction problem as most of them were unable to reach local construction labour," he said.
He said property market in Chiang Mai saw good sales in condo projects in good locations such as Nimmanhaemin Road. High-end market slowed down during the first five months of the year.
In Pattaya, demand slowed as both Thai and foreign buyers delayed their purchasing decisions because of the political problems. But condo units priced lower than 2 million baht went well. Pattaya will be second to Hua Hin to have a quick recovery in property market.
"Amid crisis, there were some buyers taking the chance to buy units at bargain prices," said Mr Sunchai.
Sales rate in all five areas dropped, but Chiang Mai saw a 62% sale for new projects launched in the first five months. Demand at beachside locations was better than in Khao Yai, as Thai buyers preferred beach to hill sites.
"If the infrastructure plan is more concrete, the provincial market will make a fast turnaround," said Mr Sunchai. "AEC may not have a significant impact on resort destination market but on border provinces."
Colliers also revised up an estimated number of condo units newly launched in Bangkok this year to about 50,000 from an earlier anticipated 40,000.