Land prices in Tak's Mae Sot district have doubled in the past 12 months as booming Thai-Myanmar cross-border trade boosts property demand among Myanmar investors and Thai conglomerates.
Thanawan Pasukunthapuk, managing director of property developer Neramit Nakon Co, said Mae Sot had the highest volume of Thai-Myanmar cross-border trade at 56 billion baht last year, followed by Mae Sai and Ranong.
"Exports to the US and Europe have slowed down due to the world's sluggish economy, but those to neighbouring countries such as Myanmar are growing vibrantly," he said.
Thanawan: Great potential in Mae Sot
"Mae Sot has potential for property investment, as there will be a second Thai-Myanmar Friendship Bridge, an East-West Economic Corridor and airport expansion, all of which will triple or quadruple border in the next three years."
Land prices in Mae Sot this year are 20-30 million baht a rai in prime border locations — double last year's average and several times greater than values in 2011.
Neramit Nakon, which was set up last October, plans to launch The Rize Condominium worth 300 million baht in Mae Sot next month.
Mr Thanawan said Myanmar investors preferred buying a unit in residential Mae Sot rather than in industrial Myawaddy, Myanmar.
The Rize on Yot Khao Road will comprise two eight-storey buildings with a total of 152 units sized 26.5 square metres and priced at 1.3 million baht or 50,000 baht per sq m.
Neramit Nakon expects to close sales this year, with 30% of buyers being Myanmar investors.
It plans to launch two projects next year — a condo with more than 20 storeys and a three-storey office for rent with about 3,000 sq m to tap strong demand among business people and investors.
Mr Thanawan said The Rize would be the third condo in Mae Sot.
The other two were launched in 2013 with a combined 230 units, now 80% sold, developed by a local developer and a Chiang Mai-based company.
Adjacent to The Rize will be a Robinson Department Store set to open this year. Other large Thai investors in Mae Sot include Saha Pathanapibul, Charoen Pokphand Group and MBK Center.
Suwannee Wattanavekin, executive vice-president of Kiatnakin Bank, said Tak was among the six border provinces attractive for property investment, as they would become special economic zones.
The five other provinces are Chiang Rai, Kanchanaburi, Nong Khai, Mukdahan and Songkhla, all of whose cross-border trade increases each year.
"Investment in capital and financial markets may be risky, as the world's economy remains fragile," Ms Suwannee said.
"Investors should consider land investment in these provinces, as land prices have the potential to rise amid the frozen property tax."
From 2013-14, the land price index outperformed other investment vehicles with an increase of 9% per year, followed by the townhouse price index at 7.3%. The SET index's return was 7.1% a year, while the SET 100 index returned 6.5%.
The condo price index rose 6.4%, followed by equity large-cap funds at 5.6%, the single-house price index (5.1%), 10-year government bonds (3.7%), money market funds and global bond funds (2.1%) and deposit interest (2%).
Mrs Suwannee said 10 provinces were attractive for property investment, with Bangkok, Nonthaburi, Pathum Thani, Nakhon Pathom and Samut Prakan driven by urbanisation and mass-transit lines.
Chiang Mai, Phuket, Chon Buri, Phitsanulok and Khon Kaen will be driven by booming tourism, trade and investment, and urbanisation.