While many of Thailand’s property markets are struggling, there has been an upswing in demand for real estate in Khon Kaen, according to the Nikkei Asian Review. This increase in demand is transforming the city’s landscape which is dominated by shop houses and low rise buildings.
There are now four residential towers standing taller than 30 floors as well as several smaller condominiums in Khon Kaen. More than 3,000 units have been completed since 2012 with some projects having sold out. One-bedroom apartments in the THB1 million to THB2.5 million continue to be the most popular types of unit with buyers in the city.
In addition to high-rise condos, luxury detached houses sitting on land where rice patties used to be are popular as well. Real estate agents told the website that 1,000 new houses have been built in Khon Kaen during each of the last three years. Some of Thailand’s largest developers including Sansiri, Land & Houses and CP Land, now have a presence in the region thanks to this property boom.
“The market is growing and is stable; it is not a bubble,” Channarong Buristrakul, president of Khon Kaen’s Real Estate Association, said. The Houze (imaged), a luxury condo project and Khon Kaen’s tallest building, quickly sold out and is a sign of just how the real estate scene has shifted during the past few years. Not only are wealthy residents looking to purchase these units, but an influx of buyers from Bangkok have started turning up.
With increased demand comes increased land prices and these are now three times higher than they were in 2011. In fact, land prices in the city are the highest of any capital in Thailand’s 20 northeastern provinces. The Nikkei Asian Review noted that a four-story commercial building in Khon Kaen that was on the market for THB2.4 million in 2014 can fetch as much THB8.6 million now.
