Zenith Asset, a developer in Khon Kaen, has announced a 1.2-billion-baht condominium project to cash in on strong demand for high-rise units in the province.
President Pongsak Saliddeechaigool specified several factors aiding condo developers in Khon Kaen these days, especially an improving economy that has boosted household income and purchasing power.
Current land prices have increased sharply every year, making it difficult to own a single house or a townhouse in downtown Khon Kaen.
"New low-rise development needs to be located far from the city. Otherwise, a condo unit is an alternative," Mr Pongsak said yesterday in Bangkok.
Prime locations in Khon Kaen where condos have launched in the past few years include Sri Chan Road _ the central business district _ and nearby areas. Units in these neighbourhoods are priced at 70,000 baht per square metre.
Other areas include Bueng Kaen Nakhon (60,000-70,000 baht per sq m), Khon Kaen University (50,000 baht) and Mittraphap Road (less than 50,000 baht).
About 30 condo projects are under construction or have applied for a permit in the province, totalling 8,000 units, and half of this supply has sold.
For his project, Mr Pongsak last year spent 150 million baht to buy a 10-rai plot on Sri Chan Road. Two rai of the site will be used for a 37-storey condominium, The Houze, with 414 units of various sizes starting at 28 sq m.
Construction will begin by mid-year and is expected to be complete by mid-2015. Sales will begin this month.
Zenith will also set aside 150 million baht to develop a shopping mall called The Hugs, with total retail space of 4,000 sq m on four rai.
Mr Pongsak, 64 years old, founded his property business in 1991 with land allocation projects in Khon Kaen before developing townhouse projects the next year.
He set up VIP Grand Co Ltd in 2005 to develop more low-rise projects. The company has five projects on hand worth 200-300 million baht each.