Khao Yai buyers demand quality

Khao Yai buyers have become more active during its high season, with condominium and villa developments actively conducting promotions to boost sales.

While these campaigns are driving interest and decisions, Khao Yai buyers will continue to significantly be swayed by the quality that each project offers.

According property consultancy JLL, Khao Yai saw a big real estate boom between late 2000’s and early 2010.

Many new condominium and villa projects were launched in response to fast-growing interest from middle-class and high-net-worth Thais looking for a holiday or retirement home close to Bangkok.

However, actual demand has been lower than interest, and has failed to keep pace with supply.

As a result, the Khai Yai market has witnessed a slowdown in both construction and marketing activities since 2014.

Most resort condominiums and villa projects that have been active in Khao Yai have been re-launched or opened new phases.

Prices of condominiums and villas in Khao Yai vary greatly, from THB 5 million to THB 35 million for condominium units, and between THB 15 million to more than THB 100 million for a villa.

Observations by the real estate firm showed condominiums priced between THB 12 million and THB 15 million are selling best, while villas priced between THB 20 million and THB 40 million have been most demanded.

Bunthoon Damrongrak, Head of Residential at JLL, said: “Prices of the best-selling residential units in Khao Yai are generally higher than average versus the major holiday home markets throughout Thailand.”

“This implies the majority of Khao Yai buyers have exceptionally high purchasing power.”

“As there is some correlation between pricing and quality, the prices of the best-sellers also reflect buyers’ willingness to pay more for premium products,” added Bunthoon.

A major challenges that Khao Yai buyers have is the scarcity of quality supply.

“Khao Yai is a niche market dominated by affluent, middle-aged Thai buyers, who purchase units for their own use and put a great emphasis on quality of products.”

“That said, future condominium or villa development projects in Khao Yai are likely to be in the prime segment where demand is concentrated.”

Whilst Khao Yai buyers generally have high purchasing power, they are small in numbers.

In order to best capture demand in this niche, JLL said that any property developers planning new projects must truly understand what prospective Khao Yai buyers are looking for.

Pictured: Swan Lake Residence in Khao Yai, which is being marketed by JLL at prices between THB 8.8 million and THB 37.62 million.