The property markets in six of Thailand’s prime resort locations will take two years to be absorbed assuming no new stock is added to current unsold housing stock.
The startling news from a survey conducted by Thailand’s Real Estate Information Center, (REIC), a unit of the Government Housing Bank, noted that more than 85,000 units in Prachuap Khri Khan, Phetchaburi, Phuket, Songkhla, Chonburi and Rayong, worth more than THB 250 billion were waiting for buyers as at the end of 2014.
The survey of condominiums, townhouses and detached housing, noted in Chonburi along there were 44,800 units – by far the largest proportion of any area.
Samma Kitsin, the Director General of REIC, said the number of residential projects launched in beach provinces had grown strongly since 2012, especially in Hua Hin and Cha-am. He attributed this to the government’s plans to invest more than THB 80 billion in the initial development of a high-speed rail link from Bangkok to Hua Hin.
He said that these infrastructure plans have increased home grown residential demand in these areas, and that developers had taken note of the news and expanded their investments in these areas,
Despite these plans, research showed that residential demand in Hua Hin recorded minimal growth in 2014 and during the first three months of this year, largely due to the economic slowing that Thailand as a whole is experiencing.
Samma added that Chonburi and Rayong are the current hotspots for property developers to expand following the Thailand Cabinet’s approval of a THB 20 billion budget for a motorway linking Pattaya to Map Ta Phut, construction of which is planned to start at the end of this year.
This story was written by Andrew Batt, Group Editor of Dot Property Group. Send your news, views, press releases and comments to him at andrew.batt@dotproperty.co.th.
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