Whilst people in Thailand are seeing increasing prices for their long stay apartment rentals in Bangkok, the markets in the outlying provinces outside the capital still outpace the capital’s market, according to property market experts.
According to property market expert SurachetKongcheep, the floods that ravaged the country in 2011 led to the shift in the market, which lead to a lot of projects following the massive flooding that struck the Central part of the country. Flood victims who were living and staying in their long stay apartment rentals in Bangkok, moved to the outlying cities, with Cha-am, Hua Hin and Pattaya having seen the most influx, with many properties in the areas being fully booked within a few days of the floods.
Now, years after the flooding, many residents in the Thai capital are still shopping for properties in the cities outside the capital, and developers have taken notice. Developers are now launching new residential projects in coastal locations, with listed developers that have several other projects in tourists destinations also developing in the coastal cities.
In particular, coastal cities within two-hours of Bangkok are especially popular, both for emergency properties and weekend homes. Major cities in every region in the country are gaining traction, with many listed developers launching projects in these cities.
Some areas, notably, are now seeing development activity in their bounds from big-name developers. Though, as the major developers move into these locations, the smaller locals are having problems competing with the larger developers, and are being forced to adapt to the changes of the market.
In cities like Chiang Mai, KhonKaen and UdonThani, among others, a property launched by any major developer, around the size of 1,000 units, is about enough to cause major changes in the local markets, while similar location usually see increases of several hundred units, if they see increases at all, annually.
The major developers are playing catch-up with the local markets, with the boom in the provinces outside Bangkok that followed the flooding unfurling over the years following the catastrophe. That being said, the lack of convenient rail travel lines into the cities keep the prices down, with developments slowing down since 2014.
However, the light rail projects leading to these cities that have been starting up may soon mean that the market may become interesting again, and these projects will become one of the key factors for boosting the markets in the provinces outlying the capital.