Tourism and agriculture increase demand in the Northeast

Mice (meetings, incentives, conventions and exhibitions), tourism and the agricultural sector are expected to continue to drive housing demand in the large northeastern provinces despite the level of inflation, helped by the reopening of China earlier this year.

Wuttichai Chatchaiphonrat, president of the Khon Kaen Real Estate Association, said the housing market in Khon Kaen will maintain a positive trend this year despite several negative factors.

“The end of the easing of loan-to-value limits, rising interest rates and inflation will have an impact on housing demand.” However, general economic factors in the province are likely to support continued growth in the housing market,” he said.

He said Khon Kaen is the educational and medical center of the region, as well as boasting a growing industrial sector.

The province is also equipped with a ring road, expanded from four to six lanes.

Khon Kaen may not be a magnet for tourism, but its focus on mice could attract more arrivals and increase the number of flights.

According to the Real Estate Information Center (REIC), Khon Kaen reported a sequential recovery in new home sales of 871 units in the second half of 2022, up from 664 units in the first half of 2022 and 595 units in the second half of 2021. .

Sales bottomed out at 346 units in the second half of 2020, down from 894 units in the first half of 2020, before recovering to 554 units in the first half of 2021.

Jaturong Thanapura, president of Udon Thani Real Estate Information, said the opening of Robinson Department Store this year and the hosting of the International Horticultural Exhibition 2026 in Udon Thani will create economic activities in the province.

“Economic sentiment and consumption showed flat growth, while the services and durable goods sectors saw improvement,” he said. “Farmers’ incomes have increased because of the conflicts elsewhere, leading to a recovery in purchasing power at home.”

He said Udon Thani’s industrial sector will improve this year after remaining flat in 2022 as China’s reopening will revive the province’s economy.

“After China reopened, Udon Thani took advantage of its proximity to Laos,” he said. “Although the province is not among the main tourist destinations in the country, it now attracts Thai visitors because of places associated with religious beliefs.”

In terms of residential sales in Udon Thani, the REIC reported a total of 207 units worth 828 million baht in the second half of 2022, a recovery from just 81 units worth 280 million baht in the first half of 2022 — the lowest level over the past few years.

Narathorn Taninpitak, adviser to the Nakhon Ratchasima Real Estate Association, said the tourism industry in Khao Yai has seen a significant change with an increasing number of foreign tourists. Before that, the majority of visitors were Thai.

“This trend is expected to have a positive impact on the local economy, leading to improved incomes for local residents,” he said. “The effects of this trend are expected to become apparent in the second half of 2023.”

Nakhon Ratchasima is expected to record economic growth of 2.8% in 2023.

The main driver will be the agricultural sector, which will grow by 5.9%, followed by the services sector with a growth of 2.9%.

The number of tourists will increase by 54% in 2023, after jumping by 96% in 2022. Last year, the province’s economic growth reached 1.5%.

“Despite the potential, housing affordability in Nakhon Ratchasima still requires policies and measures to stimulate the market and make it easier for home buyers to own a home,” said Mr Narathorn.

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