High number of unsold units in five major provinces

Residential inventory in major provinces showed 71,770 units, worth Bt229.26 billion, at the end of 2012, according to a survey by Real Estate Information Centre (REIC).

The units are expected to take about two years to sell completely, the research said.

The main provinces in this research included Chiang Mai, Prachuap Kiri Khan, Phetchaburi, Ayutthaya, Chon Buri, Rayong, Nakhon Ratchasima, Khon Kaen, Phuket and Songkhla.

Chon Buri has the highest inventory, totalling 31,340 units, worth Bt92.43 billion. Of the total, 19,010 units worth Bt56.38 billion, are condominium, and the rest, worth Bt36.05 billion, are low-rise residences - single detached house and townhouse.

Phuket showed an inventory of 7,430 units, worth Bt33.57 billion, with 4,250 units worth Bt20.37 billion, being condominium and the rest 3,180 units worth Bt13.2 billion being single detached houses and townhouses.

Chiang Mai has total inventory of 7,400 units, worth Bt21.43 billion, of which 950 units, worth Bt2.31 billion are condominium, and 6,450 units worth Bt19.12 billion are low-rise residences - single detached house, and townhouse.

Meanwhile, Phetchaburi ranks fourth with total inventory of 5,630 units worth Bt21.62 billion. Of the total, 5,270 units worth Bt20.46 billion are condominiums and the rest, worth Bt1.16 billion, are low-rise residences.

Ayutthaya province ranks fifth, with an inventory of 3,700 units worth Bt7.16 billion, 20 units worth Bt20 million being condominium projects, and the rest 3,680 units, worth Bt7.14 billion, being low-rise residences.

The top five provinces are popular locations for the top 10 property firms who are also listed on the Stock Exchange of Thailand, where they have expanded their investment since 2010.

In Chon Buri, LPN Development, Sansiri, NC Housing, and Quality Houses are expanding their investment.

Following the high inventory, REIC director-general Samma Kitsin said property firms should consider the demand in the provinces when considering new investments.