Strong residential demand being seen in Korat

Korat real estate 2022
Photo/Takeaway - Large malls have launched in Korat during the past decade

Korat may not be Thailand’s largest or most well-known city, but it is an area currently seeing strong demand for residential real estate. According to the Nakhon Ratchasima Real Estate Association, the recovery of the region’s industrial estates has improved purchasing power which, in turn, boosted the local property market. 

“People working in the industrial sector will have higher borrowing ability than those working in the service or retail sectors,” Khun Narathorn Taninpitak, Nakhon Ratchasima Real Estate Association President, explained to the Bangkok Post. “Housing demand in Nakhon Ratchasima also comes from those living in neighboring provinces, including Chaiyaphum, Buri Ram and Surin who relocate to work in the province.” 

The COVID-19 pandemic did dampen residential demand in Korat. However, the situation had returned to normal levels by the end of last year with a noticeable increase in the number of condo units and houses sold.

This turnaround isn’t much of a surprise with the Real Estate Information Center predicting last year that a quick recovery was likely for the Korat, Khon Kaen and Udon Thani property markets.

The strong residential demand being seen in Korat is similar to what happened in the Eastern Seaboard. Factories in the Eastern Economic Corridor (EEC) weren’t disrupted by the COVID-19 pandemic in 2021 which helped lift the property market there. A weaker Thai baht boosted the purchasing power of employees in the industrial export sector, and this supported the recovery in the Chon Buri, Rayong and Chachoengsao provinces.

With residential supply in Korat shrinking, many developers are lining up new launches. This includes Land & Houses who will unveil a new housing development this year. The firm is behind the region’s most notable retail project, Terminal 21 Korat.

Keep Reading: Leading bank predicts provincial housing boom in Thailand next year