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Thailand Property – Key Provinces Faces Oversupply

By on Jun 19, 2014 in Property News, Residential

The residential market in provinces such as Khon Kaen, Phuket, Chiang Mai, Prachuap Khiri Khan (Hua Hin) and Chon Buri is in a state of oversupply, with the number of new projects launched since the start of 2012 exceeding demand, according to property experts.

A joint survey by the Government Housing Bank’s Real Estate Information Centre (REIC) and the Agency for Real Estate Affairs (AREA), along with another by Pruksa Real Estate’s research department, shows the number of residential projects launched in the major provinces outside greater Bangkok had grown by more than 200 per cent since the beginning of 2012.

In Chon Buri province, the supply of residential projects was worth Bt22 billion in 2011, but this had risen to Bt50 billion by the end of last year after Bangkok-based property firms such as Sansiri, LPN Development, NC Housing, Supalai and CP Land expanded their investment in the area, which includes Pattaya.  Phuket, meanwhile, recorded project launches worth Bt3.3 billion in 2011, while new supply increased to Bt12 billion over the next two years.

Sansiri president Srettha Thavisin, whose company has expanded its investment in the provinces since 2011, said the developer had delayed the launch of new provincial projects this year after witnessing only slight demand growth.  “We will focus on selling our existing projects in the provinces, rather than launching new provincial projects at this time,” he said.

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