Khao Yai experienced a property market boom in 2013, with a record number of units launched according to new research from Colliers International Thailand.
In its Khao Yai Residential Market report, the real estate firm reported that more than 1,380 units were launched and completed in 2013 – a new record for Khao Yai record. It noted, however, that just 10 units only were launched during the first three months of 2014, bringing the total number of residential units to approximately 6,180.
The majority of supply in Khao Yai– approx. 58 percent – is located in the central area although two other areas have also continued to grow during the past few years.
Condominium units were the most popular residential type in 2013, and Colliers reported the take-up rate in all locations was around 62 percent. The average selling price of condominiums, houses and villas in the eastern area was the highest at nearly THB87,700 per sqm for condominium units, and around THB16.16 million baht per unit for houses and villas.
Colliers noted that most residential projects in Khao Yai that offer investment yield or guaranteed return can attract a lot of buyers, as those buyers can get something back from their property even though they are under a developer’s option.
Most buyers in the Khao Yai area are Thai, which is different from other tourist destinations in Thailand because just a small number of foreign tourists visit Khao Yai National Park, and because most foreign tourists prefer to look for a second home near a beach.
“Khao Yai has become interesting again in the past few years, and most land bankers in Khao Yai and well-known developers are launching their projects and trying to attract more customers with significant design and project concepts,” the report said.
In its outlook on the market, Colliers said: “The new Nakorn Ratchasima Town Plan is still a major concern for developers and land owners in the Khao Yai area, because if it is the same as the previous draft in 2013 it will limit the building area and building appliances, which will directly affect the Khao Yai property market.
“Property prices in the existing projects are expected to increase if there are restrictions on building new residential projects in the area.
“Although the Department of Public Works, and Town and Country Planning accepted the requests to revise this provision from those affected, developers and land owners are still monitoring the situation closely.”
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Andrew Batt, International Group Editor of PropertyGuru Group, wrote this story. To contact him about this or other stories email andrew@propertyguru.com.sg
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