Residential property markets like those in the southern Thailand province of Hat Yai have been experiencing a slowdown for more than a year, so when can property buyers and investors expect to see a recovery?
Earlier this week Dr.Sopon Pornchokchai (pictured right), President of Thailand’s Agency for Real Estate Affairs (www.area.co.th) helped to organise a provincial housing seminar in Hat Yai. He reported the latest survey of the housing markets in that region and as at the end 2014 he reported there were 228 housing projects with a total number of 15,598 units and a total value of THB 44.76 billion.
AREA also revealed that the average housing unit in Hat Yai was being offered for sale at THB 2.87 million. The number of units unsold amounted to 2,458, with the largest proportion of supply (37percent) offered between THB1 million and THB 2 million.
By type, 45 percent of the supply was condominiums, while detached houses constituted some 22 percent and townhouses accounted for 18 percent of the market.
Some 30 percent of the total supply were condominium units offered at prices of between THB 1 million and THB 2 million. Detached houses accounted for 12 percent of supply and were attracting average prices of between THB 3 million and THB 5 million. Condominiums priced between THB2 million and THB 3 million accounted for 10 percent of supply, while town houses priced between THB2 million and THB 3 million were 9 percent of the market.
AREA divided Hat Yai into five zones, with the largest zone being the inner city area where there were 4,776 units, or 31 percent, of the total supply. A massive 80 percent of the supply were condominium units, particularly those priced at between THB1 million and THB 2 million per unit.
In Zone 4 (nearest the airport) most of the units (54 percent) were detached houses.
During 2014 there were 33 newly launched projects with 1,166 units valued at THB 4.00 billion – an average of THB 3.4 million per unit according to AREA.
The organisation also noted that during the same period some 2,079 units with a total value of THB 6.30 billion were sold at an average price of THB 3.03 million.
According to AREA, It could be observed that the average price of units sold is lower than that of the units offered during 2014m and this implies that sales were centered on the lower-priced units.
According to the AREA survey team, Dr.Sopon summarised the market would be in a “bust period” for another year. Many developers attending the event agreed with Dr.Sopon’s summary, and expected the shrinkage of the property market in and around Hat Yai will still continue in 2016.
Hopefully it will not last more than two years, AREA concluded.
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