Thailand developer Asian Property Development has succeeded in selling 70% of 413 units worth Bt705 million of the Aspire Udonthani condominium project before its grand opening next week, amid strong demand for residential property in Udon Thani province of Thailand.
The company's executive vice president, Vitakarn Jantavimol, said that up to 70 per cent of its customers were locals who bought condos for residential purposes; about 20 per cent of the buyers were from neighbouring provinces like Sakhon Nakhon, Nakhon Phanom and Nong Bua Lum Phu province, while 10 per cent were foreign buyers who had their family in Udon Thani province.
"Aspire Udonthani is the first residential project in the province and when this project is a success we may launch a new project in this province. Meanwhile, we also are studying expanding investments in other provinces that will get new infrastructure under the government policy, such as Phitsanulok and Mai Sai in Chiang Rai," he said.
The company's chief commercial officer, Marote Wananan, said that the demand for residences in Udon Thani came from both locals and foreigners, for both one-bedroom and two-bedroom types.
"Most of our customers bought between one and two units on average, with space of between 27 square metres and 41.5 square metres per unit.
They buy for their own accommodation rather than for speculation because they believe that Udon Thani will be the gateway to Vientiane when the Asean Economic Community comes into effect in 2015," he said.
Construction of the project will start in the middle of this year and will be transferred to customers in the first quarter of 2015.
Following the demand for residences in Udon Thani province, other leading property firms like LPN Development, Sansiri, CP Land Co, Land & Houses and Supalai are also increasing their investments in Udon Thani.
According to a survey by The Nation, 2,139 condominium units were launched in Udon Thani, worth more than Bt3 billion - 1,400 units worth Bt1.9 billion from LPN Development; 413 units worth Bt705 million from Asian Property Development; the Kallapapruk City Plus by CP Land has 158 units worth about Bt250 million; Sky Land condominium by Sky Land, a local developer, will have 168 units worth Bt200 million. Sansiri also plans to launch a condominium project in 2013 that may be worth not less than Bt1 billion per unit.
Meanwhile, Land & Houses and Supalai plan to launch single detached houses at the end of this year and the next year.
Following the aggressive investment in Udon Thani, land prices in the central business district have doubled from an average of Bt20 million per rai two years ago to Bt40 million now.
"We spent Bt70,000 per square wah or Bt28 million per rai to develop Aspire Udonthani in Udon Thani 2012, but now land price at the same location has increased by about 10%," Vitakarn said.