After the pandemic slowdown hit the economy in 2020, the residential market in Nakhon Ratchasima is recovering, driven by strong demand from those working for industrial estates, according to property developers.
Narathorn Taninpitak, president of the Nakhon Ratchasima Real Estate Association, said home purchasing power in the province is reliant on the industrial sector, with the majority of buyers working at industrial estates.
"People working in the industrial sector will have higher borrowing ability than those working in the service or retail sectors," he said.
Mr Narathorn also suggested the government promote the Northeast Economic Corridor as it can help improve the property market not only in Nakhon Ratchasima, but also in Khon Kaen and Udon Thani.
"Housing demand in Nakhon Ratchasima also comes from those living in neighbouring provinces, including Chaiyaphum, Buri Ram and Surin who relocate to work in the province," he said. "Some are from Bangkok buying resort homes in Khao Yai."
Mr Narathorn said the absorption rate of residential supply picked up to 2.2% per month in the second half of 2021 from 1.3% in the second half of 2020.
The key driver was the condo sector, where the absorption rate rose to 2.5% from 0.8%, while low-rise houses increased from 1.5% to 2.1%.
He said the top five residential zones in terms of both supply and demand in Nakhon Ratchasima were Jor Hor, Nai Muang, Hua Thalae, Suranari and Kok Kruad.
As land prices were higher in Jor Hor and Nai Muang, the majority of residential supply shifted from single detached houses to townhouses and duplex houses, with plots shrinking from 56 square wah to 35-44 sq w, said Mr Narathorn.
"Housing development has extended to outer areas like Kham Thale So," he said.
"Shophouses in some areas saw a large number of unsold units because the way to do business has changed."
The majority of home purchasing power for low-rise houses was in single-storey, single detached houses priced 2.5-2.8 million baht a unit, reported the association.
However, new products such as two-storey duplex houses in the same price range were launched to attract buyers.
Condo demand in Nakhon Ratchasima gained, with popular locations remaining on Mittraphap Road at locations from The Mall Korat to Terminal 21, said Mr Narathorn.
Suthiporn Chandawanich, chief executive of SET-listed industrial estate developer Nava Nakorn, said the company planned to develop residential projects, dormitories, serviced apartments, hotels, restaurants and markets in Nakhon Ratchasima.
"The new developments will support our industrial estate in Sung Noen district as residential and commercial demand is strong and the area is growing," he said.
"Residential and commercial projects will not be in the industrial estates, but rather a separate area that can be linked to estates by roads."
Last year, Nava Nakorn set up four new subsidiaries comprising 9 Smart Development for residential development, 9 Smart Residence for dormitories, 9 Hotel and Service for hotels, restaurants and services, and 9 Fresh Market for markets.
Mr Suthiporn said the company was in talks with gas stations, banks and hospitals to set up services in the residential and commercial zones.