The seaside university town of Bangsaen is enjoying a building boom as student demand for condominiums outstrips supply, according to new market research from Colliers International Thailand.
The town, just a 90-minute drive from Bangkok, is not a popular tourism or investment destination among Thais or foreigners, but it is home to the Burapa University Bangsaen Campus. Students and staff from there are the main drivers of the property market, especially in the area near the university.
According to Colliers the total condominium supply completed and registered at the Department of Land as of May 2013 was approximately 4,380 units, with a take-up rate of more than 72 percent in all projects. Most of the available units were launched in 2012, with more than 2,670 of those in the Northern Bangsaen area.
With more than 30,000 students at Burapa University Bangsaen Campus, 6,000 of whom started in 2013, there is a strong demand for condominiums, which are often purchased by students and then sold at the end of their course, or by investors in order to rent the units to students.
Average selling prices of condominiums in the Bangsaen area are around THB45,600 per sqm. Although this price is significantly cheaper than the more traditional investor destinations in Thailand, it’s still 7 percent up on the same time last year.
The area is also expected to see its first development by a listed developer in the near future.
Read the research report: http://bit.ly/19wwq95
Andrew Batt, International Group Editor of PropertyGuru, wrote this story. To contact him about this or other stories email andrew@allproperty.com.sg
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