The Khao Yai residential property market may still be in slowdown mode for several years because many unsold units are still waiting to be absorbed in the market.
Latest research from real estate firm Colliers International Thailand discovered there are numerous available units in Khao Yai area; one of the major factors affecting the market.
It also noted that most existing development projects are facing issues concerning their ownership documents as ongoing land encroachment investigations by government officials continue.
The number of new development projects significantly decreased last year, according to Colliers, and many buyers also postponed or delayed their decision to buy property in the Khao Yai area.
Many unsold residential units still exist in Khao Yai. Colliers revealed there are more than 2,600 condominium units and approximately 2,000 housing units launched between 2012 and 2013, and that more than 2,500 condominium and housing units are still waiting for absorption into the market.
Some residential projects have been cancelled or have postponed their launch dates, it reported.
In terms of prices, they have remained much the same as last year, according to the agency. Developers are keeping selling prices similar to previous years to attract more buyers.
Condominium prices in Khao Yai as of May 2015 were around THB84,500 per sqm, similar to that in Bangkok and other resort destinations. The prices of housing units start from THB2 million and can go higher than THB55 million per unit.
In its forecast, Colliers said the Thai government and all related government offices must find the best solution for checking the land ownership documents in the Khao Yai area, and they must finish as soon as possible because developers and buyers are still concerned regarding this matter, and have postponed development or purchases this year.
The Khao Yai residential market may still slowdown in 2015 and next year because many unsold units are still waiting to be absorbed in the market. Moreover, other harmful factors that directly affect the confidence of buyers and Thailand’s economy that has not yet recovered may be contributory factors to the slowdown.
Many small, medium and new developers have postponed or cancelled their projects in Khao Yai area. In addition, some developers have also revised their plans and may stop their sale in 2015.
Some have also postponed the launching of their new phase in 2015.
Residential units that are sold at more than THB20 million may not be successful in the future because many lower-price residential units are still available in the market.
To read the complete Colliers International Thailand Khao Yai May 2015 Forecast and Market report click here.
Main picture caption: Heo Suwat waterval in Khao Yai National Park, Thailand, by Jacco van Trigt. Used under a WikiCommons license.
Andrew Batt, International Group Editor of PropertyGuru Group, wrote this story. To contact him about this or other stories email andrew@propertyguru.com.sg
