Strong economy to support a quick Northeast Thailand property market recovery

Cheyenne Hollis

3 years ago

A high-speed train connecting Thailand with China had boosted the property markets in Northeast Thailand such as Nong Khai (pictured)

A strong local economy supported by manufacturing, transportation and the construction sectors will help spur a quick Northeast Thailand property market recovery that could begin as soon as this year. The Real Estate Information Center (REIC) noted many developers are preparing new launch plans in anticipation of growing demand.

While the housing market hasn’t experienced much of a decline in Nakhon Ratchasima, Khon Kaen and Udon Thani during the pandemic, the condominium sector did see a slide. But even that could be short lived with the REIC telling local media that homebuilders have requested more construction permits for residential units in Northeast Thailand.

“Developers are monitoring the market closely. They will launch new supply once inventory is sold,” Khun Channarong Buristrakul, President of the Khon Kaen Chamber of Commerce, told the Bangkok Post. “The economic situation in Khon Kaen is steady. Even though the tourism sector is stumbling, manufacturing, transportation and the construction sector remain healthy.”

Earlier in the year, Krungsri Research, the information arm of Krungsri Bank, proclaimed that the provincial housing market in Thailand would pick up starting next year at the latest. A Northeast Thailand property market recovery was seen as likely by the bank.

Northeast Thailand property market recovery has less ground to make up

While Bangkok and Phuket have recorded noticeable declines, a Northeast Thailand property market recovery won’t have as much ground to make up if last year was anything to go by. REIC data showed that 11 condo projects with 2,140 units hit the Isan property market in the first six months of 2020. An estimated 70 percent of this total was sold during the same time span.

A pair of developers building condominiums in Khon Kaen told the newspaper that they didn’t record 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 COVID-19 pandemic.