There is also high demand for property in vacation provinces, especially Pattaya, Phuket, Koh Samui and Chiang Mai, according to the research by international property agencies JonesLang Lasalle and CB Richard Ellis.

CB Richard Ellis managing director Aliwassa Pathnadabutr said demand for housing priced lower than Bt2 million showed strong growth last year, especially condominiums near the mass transit systems.

Prime locations for condominium projects, which focus on a lower to middle market, include Phaholyothin, Ratchadapisek, Lat Phrao and Thapra.

JonesLang Lasalle Thailand managing director Suphin Mechu-chep said that Sukhumvit, Sathorn and Ratchadapisek will be the prime locations for the middle to upper-end residential market, especially condominiums and serviced apartments.

"Demand for the middle to upper-end condominium market will focus on foreign investors who have business in Thailand," she said.

Meanwhile, demand for housing and resorts at such vacation provinces as Koh Samui, Pattaya, Phuket, and Chiang Mai also shows strong growth, Suphin said.

She added that foreign investors from Singapore, Hong Kong, the US and the Middle East have expressed a willingness to expand their investments in Thailand's property sector, particularly in office buildings, retail developments and serviced apartments, and strong growth is expected in these sectors next year.

In 2006, foreign investors bought Bt25 billion worth of office buildings in Bangkok, with most of that amount invested through property funds.

Thongma Vijitpongpun, president of Preuksa Real Estate, added that locations outside the central business district (CBD), which included Sathorn, Silom, Sukhumvit, Rathcadapisek and Asoke, are also high potential locations for home-buyers if the projects are near a main road or the new rail lines, which will be contracted this year. The best locations outside the CBD are Bang Bua Thong, Rangsit, Rattanathibate and Thapra.

Housing outside the CBD at prices lower than Bt3 million per unit will receive a positive response from home-buyers, Thongma said.

Dr Theerachon Manomaipibul, executive director of Property Perfect, said that locations near Suvarnabhumi Airport such as On-Nut and Srinakarin Road will remain popular for home-buyers who work or have related businesses near the airport.

 "Noise pollution discourages home-buyers who want to buy a house near the new airport but when they visit On-Nut and Srinakarin Road, they'll know there is no noise pollution at these locations," Dr Teerachon said.

Somluck Srimalee

The Nation