The real estate market in Khao Yai is slowing down with sales of residential property in the popular resort region having decreased significantly compared to 2010-2013, shows research from Colliers. Many residences launched in the past few years are still for sale on the market while there have also been issues with verification of land ownership which has complicated efforts of developers in selling some projects.
“In the past 4 years, significantly more condo projects were launched than any other category of housing, because condos tend to be developed on smaller plots and verifying land ownership tends to be less of an issue. In addition, condo units tend to sell for less than landed development projects,” says Surachet Kongcheep, Associate Director for Research of Colliers International Thailand, to the Bangkok Post.
A total of 260 condo units have been launched in 2017 with all of these located in 1 project.
Several developers decided to clear existing inventories before launching new projects while other condo developments have been cancelled all together due to low take-up rates.
“Condos have grown in popularity during the past few years, largely because many buyers seeking residences in Khao Yai are looking mainly for weekend or holiday getaways. They thus want more affordable options than landed housing units. Condo units are also more convenient and easier to maintain, and most buyers in Khao Yai are purchasing 2nd homes,” says Surachet.
The average take-up rate of all residential categories including condo units and single houses in Khao Yai is 68 per cent this year, which is an increase when compared to the same period last year. However, the increase is attributed to the success of a new condo project that sold well.
Thais looking for a holiday home are the main buyers of Khao Yai properties. The region has better weather than other weekend destinations such as Pattaya and Hua Hin while being less crowded during most of the year. However, its lack of foreign tourists has also hurt the property market since investors are less likely to buy in Khao Yai.
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