Developers delay provincial investment
Property developers are reluctant to invest in provinces without major tourist centres because demand for housing is too low, Prasert Taedullayasatit, chief business officer of listed Pruksa Real Estate Plc, said on Thursday.
- Published: 9/05/2013 at 02:16 PM
- Newspaper section: news
Mr Prasert said that Pruksa, a leader in the medium to low-end housing market, is being cautious about where it invests, because there are many real estate companies entering the market, but demand for property is low.
He said the property sector in Chon Buri and Phuket still has the potential to grow, because both provinces have strong economies supported by tourism.
Atip Bijanonda, president of the Housing Business Association and managing director of Supalai Plc, agreed that a limited number of provincial markets are of interest for real estate development, including Chon Buri.
He said developers had to choose the right location to avoid oversupply, which is already causing problems in some locations.
In relation to Phuket, he said the market had potential, with high purchasing power, but warned that many companies had entered the market and are competing to buy land, resulting in inflated land prices.
He added that he was surprised to see so many companies currently investing in condominium development in the Northeast, because areas around those condominiums could be developed into townhouses, which are more attractive to buyers.
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- Writer: Online Reporters