Parts of Thailand’s residential property markets are experiencing oversupply according to a new survey, resulting in some of the kingdom’s high-profile developers delaying their planned new launches.
The joint survey produced by the Real Estate Information Center, the Agency for Real Estate Affairs and the research team at property developer Pruksa Real Estate, noted that areas including Khon Kaen, Phuket, Chiang Mai, Prachuap Khiri Khan and Chonburi are all experiencing an oversupply situation, with supply exceeding demand in some locations.
In Chiang Mai some THB14 billion of new property projects were launched in 2013 – an almost 600 percent rise on 2011 totals. In the province of Chonburi, 2011 saw THB22 billion worth of new launches, which increased to more than THB50 billion in 2013.
Phuket’s new supply was recorded at THB12 billion, up from just over THB3 billion in two years, while in Khon Kaen the last two years saw THB9.2 billion worth of projects launched versus none in 2011.
Pruksa Real Estate Managing Director Prasert Taedullayasatit, noting the results of the research, confirmed his company has opted to delay new launches in the provinces.
"We are focusing on Bangkok and its suburbs rather than expanding our provincial investment, as we believe supply in the provinces exceeds demand," he said.
Sansiri’s President Srettha Thavisin shared the same sentiments.
He said: "We will focus on selling our existing projects in the provinces, rather than launching new provincial projects at this time.”
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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If you have a news story or comment for publication about Thailand property or real estate email: andrew@propertyguru.com.sg