Condo projects set to rise in rapidly urbanising Udon Thani

UDON THANI : Rising incomes and greater urbanisation have drawn at least four big Bangkok developers to launch five condo projects with a combined 3,200 units within 12 months in this northeastern province.

The expansion was first pioneered by CP Land, the CP Group's property arm, which launched two projects with a total of 400 units last year.

The SET-listed Asian Property Development Plc (AP) came next, launching Aspire Udon Thani with 413 units worth 705 million baht last Saturday and reporting 70% sold in just one week.

Another two developers are condo market leader L.P.N. Development Plc and Sansiri Plc, which will launch one project each with more than 2,400 units total.

All five condo projects will be on or near Phosri Road, one of the main roads in Udon Thani.

"There had never been condo projects in Udon Thani, even from local developers," said Marote Vananan, AP's chief commercial officer.

Research by Kiatnakin Bank (KK) showed there were no condo projects in Udon Thani, with a population of 1.54 million, as of the first half of last year.

All housing supply was low-rise, with single homes accounting for 73% and townhouses and duplexes 12% each.

Meanwhile, a survey by AP in last year's fourth quarter found two newly launched condo projects accounted for 18% of total supply.

KK said income per household in Udon Thani has been growing by 11% a year, reaching 22,017 baht in 2011.

That figure was higher than the average income for the entire Northeast.

Meanwhile, the number of people per household fell from 3.9 in 2005 to 3.5 in 2011.

"Smaller families and increased demand for long-term rentals reflect the new lifestyle of local people in Udon Thani," said Mr Marote, formerly a regional manager for the consumer products firm Procter & Gamble.

The National Statistical Office said the urban proportion of Udon Thani in 2009 was 43%, driven by relocation of residents from neighbouring provinces and foreign couples.

Aspire Udon Thani will sit on a 3.5-rai site on Phosri Road comprising two eight-storey buildings with a total of 413 units sized at 27, 38 and 41.5 square metres and starting at 1.43 million baht a unit (59,300 baht per sq m).

Most of the sold units are the smallest size, while more than 90% of buyers are locals, with the rest from Nong Khai, Khon Kaen, Nakhon Ratchasima, Kalasin, Sakon Nakhon and even Laos.

"Residential demand will be strong in the next few years due to the province's potential and government support that will draw investors and workers to the province," said Mr Marote.

Shares of AP closed yesterday on the SET at 10.10 baht, up 10 satang, in trade worth 255 million baht.

16 Mar 2013 16 Mar 2013
16 Mar 2013 16 Mar 2013

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