The condominium markets in Khon Kaen and Udon Thani will continue to attract new developments, driven by new transport networks and demand from both local and non-local buyers.
Napatr Tienchutima, associate director of property consultant Colliers International Thailand, said the provinces remain attractive to investors looking for a chance to develop projects.
During the first four months of this year, there were four enquiries from investors interested in residential projects in Khon Kaen. They included both local and non-local developers as well as other businesses.
They bought land many years ago before the property market in Khon Kaen became active, Ms Napatr said.
Some are Bangkok-based developers wanting to diversify from the capital where market competition is fierce. Some are from other sectors such as construction and industry and want to diversify from their core businesses.
Surachet Kongcheep, Colliers' senior research manager, said the housing markets in the two northeastern provinces continue to have strong demand from local and non-local buyers. For example, condo demand in Khon Kaen is driven by university students.
The high-speed train plans are also boosting the region's property market.
Speculators from other provinces are also driving condo sales. However, the markets differ from Bangkok as there are many land plots available.
Condo supply in the two provinces began booming last year with 5,588 newly launched units accounting for 56% of the 10,010 residential units.
During the first four months of this year, 3,293 condo units were launched in Khon Kaen and Udon Thani with an absorption rate of 80% on average.
While condo supply in Udon Thani was lower than in Khon Kaen, the absorption rate in Udon Thani was higher at 88% than in Khon Kaen (80%).
Average unit prices in the two provinces were 45,000 to 55,000 baht per square metre, but the highest prices were 90,600 baht in Khon Kaen and 74,000 in Udon Thani.
From 1991 to April this year, condos accounted for only 1% of housing registrations and construction permits.
Mr Surachet said single houses and sub-land plot allocation were the main drivers of the housing market in the two provinces before 2010.
Among low-rise units, single houses remain the most popular, accounting for 84% of the total, followed by townhouses (11%) and shophouses (4%).
The absorption rates of low-rise units were 83% in Udon Thani and 77% in Khon Kaen.
About the author
- Writer: Kanana Katharangsiporn
Position: Business Reporter