The Isan property market has emerged from the COVID-19 pandemic relatively unscathed. Meanwhile, continuing work on several key infrastructure projects will be a catalyst for growth in 2021.
Nakhon Ratchasima Real Estate Association President Narathorn Taninpitak explained to the Bangkok Post that the Isan property market has been solid this year due to the fact that the local economy, which is led by the industrial sector, hasn’t experienced a serious drop off.
Data from the Real Estate Information Center (REIC) found that 11 condo projects with 2,140 units hit the Isan property market in the first six months of this year with an estimated 70 percent of this total sold.
A pair of developers building condominiums in Khon Kaen haven’t recorded any noticeable declines in 2020 even with real estate sales and launches falling elsewhere in Thailand. Both Ocean Property and Sriroong Land & House reported minimal impact from the ongoing COVID-19 pandemic.
Representatives from the two homebuilders also told the newspaper they were optimistic about the Isan property market looking ahead to next year as work continues on a number of infrastructure projects.
Isan property market boosted by infrastructure
Infrastructure will support the growth of the Isan property market for years to come. The headline project is the high-speed train which will eventually connect Thailand and China once completed. In October, the State Railway of Thailand, China Railway International and China Railway Design Corporation signed a THB50 billion contract for the first stage of the project.
With this part of the project looking more a like a reality, attention has now turned to Nong Khai and Isan which are key areas for the second stage. Northeast Thailand would receive a boost from this high-speed train network that will eventually link Bangkok to China.
Related: Will the high-speed train fuel a Northeast Thailand property boom?
The high-speed train isn’t the only infrastructure project in the pipeline. It was recently announced that the new terminal at Khon Kaen airport is set to open in April. This will allow the airport to bring in flights from overseas, add more capacity for domestic flights and improve current facilities.
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Also in Khon Kaen, work on a light rail project is expected to start some time in 2021. The public transit line will have a total of 18 stations and cover 26 kilometers as the local government hopes it can alleviate the city’s congestion issues.