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Property prices in Khon Kaen, Udon soar

Land prices in Khon Kaen and Udon Thani are flaring up more than 30 per cent this year as many developers expand into the two strategically-located northeastern provinces.

Att Attanont, deputy director-general of the Legal Execution Department, said last week that the government initiated early this year a policy to invest Bt2 trillion in the country's infrastructure.

Some of the projects will be in the Northeast, like the double-track railroad connecting the region to Bangkok and neighbouring countries, especially Laos. This will open up the North-East Corridor linking Thailand with Laos and Vietnam.

Leading property firms have moved into Khon Kaen and Udon Thani this year to cash in on the policy, which is expected to stimulate the regional economy.

Sathit Supamatee, director of the Legal Execution Office in Khon Kaen, said the major property firms started entering the residential market in 2011. They have launched condominium and single family home projects.

The strong demand for land to develop residential projects has boosted prices in Muang district and around the district from an average of Bt10,000 per square wah last year to Bt20,000-Bt30,000, depending on the proximity to the central business district.

The strong demand has helped the department speed up sales of assets worth Bt1 billion in the fiscal year that ended in September from its total assets for sale worth Bt1.9 billion.

"We have fewer assets for sale because of the province's strong economic growth following the trend of investors coming to this province," he said.

According to a survey by The Nation, those firms include Sansiri, CP Land, which started work on both condos and single family homes, Land & Houses and Supalai, which is in the single family home business in this province.

Land prices in Udon Thani also jumped 40-100 per cent this year after the government revealed plans to lay a double track railroad to the province that will link to Nong Khai and further to Vientiane in Laos, said Komkrit Suksathian, director of the Legal Execution Office in Udon Thani.

Udon Thani will become the gateway to Laos because the province now has the infrastructure and facilities to support the activities of local and foreign investors. Land prices have doubled to Bt1 million per rai.

The Udon Thani office is targeting asset sales of up to Bt550 million this fiscal year that began in October after achieving sales of Bt507 million in the last fiscal year.


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