Rapid urbanisation of the Bangkok Metropolitan Region (BMR) is showing signs its saturation and developers are looking elsewhere for potential growth.Property developers are shifting their attentions away from the BMR to Thailand’s provincial regions.
Decreasing take-up rates have meant inventory levels are up, and the damage caused by the 2011 floods have caused some developers to lose confidence in the long term feasibility of BMR.
The Bangkok Post reports that Thailand’s north-eastern Isan region is the next prime location for the development of a new industrial hub. Plans to develop a special border economic zone and green industrial estate in this area have been approved by the government. Development of transport links in the area will transform the landlocked region into a focal point for trade with neighbouring countries which can provide large labour forces.
According to Sutapa Amornvivat, chief economist at the Economic Intelligence Centre of Siam Commercial Bank, development in the area will produce a new growth node and generate trading areas, leading to a finer balance between urban and rural provinces.
Prime areas for development in the region include Khon Kaen, Udon Thani, Mukdahan, Maha Sarakham and Nakhon Ratchasima. Land prices in Udon Thani and Ubon Ratchathani are set to double according to a recent survey by the Real Estate Information Centre.
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Overall, Amornvivat believes development in Isan could enhance local buying power and generate economic activity, increasing modernisation in the region as developers hone in on this promising opportunity.