Condo supply stabilises in Khao Yai for now but resurgence expected
The supply of residential projects in Nakhon Ratchasima's Khao Yai area is stable but will likely increase again by the fourth quarter, according to a survey by Nexus Property Marketing Co.
The research shows that during the next two quarters, condominium prices in the area will be stable because the market is entering low season.
With a number of leisure facilities proposed for the Khao Yai market – water parks, theme parks, medical and health centres, retail centres and hotels – the area will become a new travel destination for both Thais and expatriates due to rising demand for second homes.
Nexus managing director Nalinrat Chareonsuphong said the residential market near Khao Yai National Park was becoming popular because of its short distance from Bangkok while providing ultimate privacy, mountain views and proximity to nature.
Meanwhile, the new town plan for Pak Chong, the district in which Khao Yai lies, will be postponed for at least another year. This town plan will play a crucial role in controlling all forms of development in the area, so some project launches have been delayed.
The major locations for residential developments are Tanarat Road and the areas to the road’s east and west, Kudkla-Pansuk Road, and the road to Wang Nam Kheow district.
According to the survey, two projects were launched into the Khao Yai condominium market in the first quarter comprising a total of 365 units. Atta the Condo owned by Noble Development is offered rental guarantees to attract investors while Zen Next has a new onsen feature (bathing facilities in the style of Japanese hot springs). The total supply of condominiums in Khao Yai now stands at 2,654 units in 27 projects.
An additional 176 units of luxury condominium units, Serene Hills at Tanarat Kilometre 7, will be launched this quarter.
Most of the demand for homes in Khao Yai is from Bangkokians. There remains demand for condominiums, especially those with investment-return opportunity. Nalinrat added that the popularity of Khao Yai over the past few years had resulted in skyrocketing land prices, which together with higher construction costs was forcing up condominium prices.
The prices of the projects launched this year will be significantly higher than those launched last year, forecast at around Bt90,000 per square metre compared with Bt69,500 per square metre in 2012. This is mainly due to the high quality of the new projects as well as the rental guarantee campaigns.
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