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Bangkok Property – Provincial Investment Rises as Bangkok Slows

By on Feb 04, 2014 in Property News, Residential

Property firms are expanding their investment in the provinces in the first half of the year, against the backdrop of a declining market in Bangkok and its suburbs since the anti-government protests and political turmoil began to grip the capital early last month.

A survey by The Nation has found that developers are delaying the launch of residential projects in inner Bangkok this quarter, but they are expanding in the provinces, where there is still demand even though spending on the government’s Bt2-trillion mega-infrastructure projects has been delayed by the political crisis.

“Although the Bt2-trillion infrastructure programme has had to be delayed until the country has a new government, demand to buy homes in the provinces is still strong at this time when compared with greater Bangkok, where it has fallen by between 15 and 20 per cent since [the start of] December, due to the political turmoil,” said Pruksa Real Estate president and CEO Thongma Vijitpongpun.

Following the market sentiment, Pruksa plans to launch residential projects in other provinces during the current quarter. Among the provinces in its sights are Chon Buri, Rayong, Pattaya, Surat Thani, Nakhon Si Thammarat, Nakhon Ratchasima, Udon Thani and Chiang Mai.

Provincial launches this year will account for about 7 per cent of its 40-50 new residential projects worth between Bt40 billion and Bt50 billion, he said.

The Agency for Real Estate Affairs has forecast that the value of project launches in Bangkok and its suburbs this year will drop by 30-40 per cent from last year’s Bt385 billion, after seeing that only 30 residential projects totalling 4,438 units worth Bt15.63 billion came on to the market last month. That represented a 30-per-cent decline from November in terms of projects, 73 per cent in terms of units, and 69 per cent in terms of value.  However, the agency maintains its forecast that new residential projects launched in the provinces this year will be worth between Bt330 billion and Bt340 billion.

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