MAY 2012 | ResidentiAl MARket

Khao Yai Residential MaRKet

thailand

Khao Yai Residential Market Report

ExEcutivE Summary
the Khao Yai residential market is going through its second boom period despite a large overhang of property from the first boom. Many projects have been launched over the past 15 years and are still available in the market. Most of the projects launched during that first boom period are plots of land for sale and are located in the vicinity of hotels and resorts. More than 55% of the total residential supply in Khao Yai is located along thanarat Road in the central area where the majority are plots of land for sale. More than 330 condominium units were completed in the Khao Yai area and most of the current supply are located in the area along thanarat Road in the central area. there are approximately 150 condominium units available for sale of a total of around 480. approximately 1,300 houses, villas and plots of land in development are available for sale in Khao Yai out of a total of around 3,550 units. the average take-up rate for all property types and locations is 63%. the highest rate is in the central area and condominiums have the highest take-up rate at around 65%, which is similar to houses, villas and plots of land for sale. the average price of houses and villas in Khao Yai is approximately thB9.79 million per unit; for plots of land it is around thB9,160 per wah; and for condominium units it is more than thB62,600 per sq m. Many residential projects were launched in the past two to three years, some of them by well-known developers as well as local developers who expanded their portfolios with new projects. the tuscany style is the most fashionable architectural design in the Khao Yai area, with many residential and some retail projects following the trend.

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KHAO YAI RESIDENTIAL REpORT | mAY 2012 KHAO YAI RESIDENTIAL REpORT | mAY 2012 introduction to Khao yai

Khao Yai is the area outside Khao Yai national Park, only two hours by car from Bangkok. in addition, Khao Yai has the seventh best ozone in the world and noticeably cooler weather almost all year compared to Bangkok. UnesCo recognised Khao Yai national Park as a World heritage site in 2005, which guarantees that this area will remain

natural in the future. this makes the area the best location for a second home and many buyers, including thai celebrities, politicians and famous businessman from Bangkok are also buying land in the area on which to build weekend villas, houses or condominium units in residential projects.

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KHAO YAI RESIDENTIAL REpORT | mAY 2012 KHAO YAI RESIDENTIAL REpORT | mAY 2012 Khao yai rESidEntial marKEt
hiStorical Supply of condominiumS, landEd propErty unitS and plotS of land by yEar, may 2012

source: department of land, Colliers international thailand Research Remarks: the figures include landed development units, plots of land and condominium units. excluded are condominium units which are under construction.

the first residential project in Khao Yai started in 1995. the ripples of the property boom in Bangkok could also be felt in Khao Yai. the residential market and hotel development in Khao Yai began during the same period, all of which were located close to a hotel or resort or in the same project. thailands economic crisis in 1997 put a halt to the nascent property market in the area and since 2001 no new supply was added to the market until 2005.

it was not until 2007 that the next growth spurt in Khao Yai began in earnest. in the past two to three years, many residential projects were launched in Khao Yai, and some of them belonged to well-known developers. the total number of condominiums, landed property units and plots of land in the Khao Yai area in May 2012 was approximately 3,880 units.

hiStorical Supply of condominiumS, landEd propErty unitS and plotS of land by location, may 2012

source: Colliers international thailand Research Remarks: the figures include landed development units, plots of land and condominium units. excluded are condominium units which are under construction.

More than 55% of the total supply or more than 1,800 units in Khao Yai are located in the central area, most of which are plots of land for sale. the central area covers both sides of thanarat Road. Most residential

projects, especially those launched before 1999 are located along the thanarat Road because it is the main road in the Khao Yai area.

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KHAO YAI RESIDENTIAL REpORT | mAY 2012

hiStorical Supply by propErty typE and yEar, may 2012

source: Colliers international thailand Research

More than 2,300 units or 61% of the total supply in Khao Yai are plots of land in development for sale. the first project with more than 500 units began in 1995, when Khao Yai became famous. approximately

180 condominium units were added in the Khao Yai area in 1995, but after that there was no new supply until 2006, which then slightly increased every year.

currEnt Supply by location, may 2012

source: Colliers international thailand Research Remarks: the above figures include landed development units and condominium units.

the total number of residential units in Khao Yai is approximately 3,880. the central area contains the highest number with approximately 2,200 units, while more than 920 units and nearly 750 units are located in the eastern and western areas, respectively. the central

area is the most popular for residential projects because it covers both sides of thanarat Road in the Khao Yai area which connects Mittraphap Road to Khao Yai national Park. Most of the development projects in Khao Yai are located along this road.

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KHAO YAI RESIDENTIAL REpORT | mAY 2012 Khao yai condominium marKEt
hiStorical Supply, may 2012

source: department of land and Colliers international thailand Research Remarks: Construction completed and registered at the department of land

the first condominium project in Khao Yai started in 1995 but from then, there was no new condominium project development until 2005. the main buyers in Khao Yai are people who live and work in Bangkok and are over 45 years old. Khao Yai is a place that buyers choose for

relaxation and an escape from the hustle and bustle of Bangkok. it has an abundance of open spaces, trees, walks through the greenery and cool natural breezes. although condominiums do not satisfy the buyers requirements, they still choose to buy condominiums because in the past three to four years, buyers are in a younger age group with not enough money to buy houses and maintain them.

hiStorical Supply by location, may 2012

source: department of land and Colliers international thailand Research Remarks: Construction completed and registered at the department of land

all of condominium projects are located in the central area. this area covers both sides of thanarat Road. almost all projects are located along this road and the sub-roads of thanarat Road, as this is the first

and main road to Khao Yai national Park. apparently this area is densely with residential projects, resorts and hotels, so developers are looking for new locations for new projects.

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KHAO YAI RESIDENTIAL REpORT | mAY 2012

condominium unitS availablE for SalE, may 2012

source: department of land and Colliers international thailand Research

there are approximately 150 condominium units available for sale of a total of approximately 480 units. the highest number is in the eastern

area where new projects were launched in 2010 and 2012.

unitS launchEd
condominium unitS launchEd from 2008 to may 2012 by location

source : Colliers international thailand Research

More than 120 units were launched in 2010 in the central area. the highest number from 1996 to 2012 was at Botanica Khao Yai in the same location as Greenery Resort Khao Yai. in addition, approximately

120 units were launched in the central and eastern areas during the first five months of 2012. More than 180 units are scheduled to be launched in the western area at sansiri Plcs new mixed-use project.

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KHAO YAI RESIDENTIAL REpORT | mAY 2012 futurE Supply

cumulativE futurE Supply by location and yEar, may 2012

source : Colliers international thailand Research

approximately 260 units are scheduled to be completed in 2012, with around 190 units in the central area and nearly 70 units in the eastern area. the central area is still the most fashionable for condominium development as it has more than 240 units scheduled to be completed in 2014 and approximately 230 units in the western area. as there are

many supporting facilities such as restaurants, convenience stores and community malls located along the main road in the central area, most condominium projects in Khao Yai are in this area. the first condominium project launched in the western area in 2011 was Puphajan hill Project. sansiri Plc has plans to launch a new project in this area in the last quarter of 2012.

dEmand
taKE-up ratE of all condominium projEctS in thE marKEt, may 2012

source : Colliers international thailand Research

the take-up rate of more than 75% in the central area is significantly higher than in others. this compares to nearly 50% in the eastern area and approximately 40% in the western area. the majority of

them are located along thanarat Road where most of the facilities in the Khao Yai area are, which is a major attraction for buyers.

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KHAO YAI RESIDENTIAL REpORT | mAY 2012 pricE

avEragE SElling pricE of condominium unitS availablE for SalE by location, may 2012

source : Colliers international thailand Research

the average selling price in the eastern area is the highest at more than thB71,000 per sq m. this is because many condominium projects with Mountain View and peaceful atmosphere are located on or near

the golf course. the average price for the western area is approximately thB37,000 per sq m, the lowest in the Khao Yai area, because of there are few supporting facilities in this area.

Khao yai marKEting for houSing and plotS of land

in dEvElopmEnt

hiStorical Supply, may 2012

source: Colliers international thailand Research Remarks: the number of units includes houses, villas and plots of land for sale in development projects only.

Plots of lands for sale by developers in the Khao Yai area began in 1995 at the same time as hotel development in Khao Yai because they are within the same area as hotel projects. no new supply was added to the market from 1996 to 1998 due to the slump in the property market throughout thailand following the asian financial crisis in 1997. it began to grow again in 1999 - 2000. the number of landed developments in Khao Yai in 2000 was around 900 units. since these

take time to sell, there was no new supply from 2001 until 2004. the new supply of houses, villas and landed development projects from 2006 to 2010 was different from the past because they were not located in the same area as hotels or resorts and most of them had land with houses or villas. the total supply in May 2012 was greater than 3,500 units.

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KHAO YAI RESIDENTIAL REpORT | mAY 2012

Supply by location and yEar, may 2012

source : Colliers international thailand Research

the majority of landed development projects are in the central area. this was the first area for land development projects in Khao Yai followed by the western area. the eastern area only started

development in 2007 or about 12 years after the first project in the central area; but in 2010 the total number was more than in the western area and continues to grow.

houSES, villaS and plotS of land in dEvElopmEnt availablE for SalE in thE marKEt by location, may 2012

source: Colliers international thailand Research

the central area has the highest number of available units with more than 700 out of the total supply of more than 1,870 units. this is because many land plots offered for sale in the past 15 to 17 years are still available on the market as some projects lacked marketing strategies and maintenance and do not attract buyers. the eastern area is second with around 400 units of the total of more than 920

units. all units in this area were launched from 2007 to 2012. the eastern area is most popular for plots of land, houses or villa projects for sale as the main road in this area is parallel to Khao Yai national Park. these projects have a Mountain View and a more quiet and private atmosphere.

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KHAO YAI RESIDENTIAL REpORT | mAY 2012 unitS launchEd

houSES, villaS and plotS of land in dEvElopmEnt unitS launchEd from 2005 to may 2012 by location

source : Colliers international thailand Research

a large supply of approximately 2,500 units, or 71% of the market was launched after 2006, especially during 2010 and 2011 when more than 600 units were launched each year. after 2006, around 930 units were launched in the eastern area and more than 460 units in the western area. Khao Yai is the best location for thai retirees or high net worth businessmen because of its refreshing atmosphere, tranquillity and location not far from Bangkok. the first people who entered the Khao

Yai market were from this group. some of them bought plots of land in Khao Yai and sold them to their friends or developed small projects for sale to close acquaintances only. the new projects in the past two to three years are different from those in the past. Currently, we can find tuscany, a modern contemporary design project. there are also French, Bali and thai architectural designs in the Khao Yai area, not just the old country style. Plots of land and houses for sale are also smaller than they were in the past in order to attract more buyers with cheaper prices.

futurE Supply
cumulativE futurE Supply SchEdulEd to bE complEtEd from 2012 to 2015 by location, may 2012

source : Colliers international thailand Research

approximately 410 units are scheduled for completion in 2012 in all locations, and nearly 75% of these are located in the eastern area. the central and eastern areas are most fashionable for residential projects in Khao Yai as nearly 1,000 units are scheduled for completion next

year. however, the completion date also depends on the developers as some housing projects in Khao Yai are made to order and construction only begins after the buyers have signed an agreement.

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KHAO YAI RESIDENTIAL REpORT | mAY 2012 dEmand

taKE-up ratE for all projEctS in thE marKEt by location, may 2012

source : Colliers international thailand Research

the western area shows the highest take-up rate of about 80% of the total supply in the area or around 750 units. this is because some projects sold out very quickly due to their lower selling prices when compared to other locations. sales in the central area which is more

than 60% started since 1995 and until today there are still land available for sale. the eastern area is a new area in Khao Yai for houses and land development. the higher selling price there also lowers the take-up rate in the area.

pricE
avEragE SElling pricE by location for houSES and villaS availablE for SalE, may 2012

source : Colliers international thailand Research

Most of the projects in the western area are plots of land for development with only a few housing projects in the area. the average selling price is not much different. the average selling price is around thB4,120,000 per unit, the lowest in the Khao Yai area, as it is not a high-end project. the average selling price in the central area is approximately thB6,300,000 per unit. the architectural design of houses and villas in the central area is very different and their prices also depend on the building area and decoration. the average price in

the eastern area is more than thB12,000,000 per unit. this is the highest in the Khao Yai area because most of the house and villa projects in this area are located in the same area as golf courses and luxury resorts where buyers get privileges for the facilities. in addition, the designs of most projects in this area are very beautiful and exotic such as at Kirimaya Residence, toscana Valley and the eyrie in the tuscany style.

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KHAO YAI RESIDENTIAL REPORT | MAY 2012

AVERAGE SELLING PRICE BY LOCATION FOR PLOTS OF LAND FOR DEVELOPMENT AVAILABLE FOR SALE, MAY 2012

Source : Colliers International Thailand Research

The eastern area is the most recent in the Khao Yai area. It is located in the hills. The mountain scenery can be seen from most projects. Some projects are also located in the same area as golf courses and

luxury resorts. The average selling price is the highest with a maximum price of more than THB35,000 per sq wah.

TOURISM PAKCHONG TOURISM MARKET OVERVIEW

VISITORS BOOKED INTO HOTELS IN PAKCHONG BY QUARTER FROM 2004 TO Q2 2011

Source: Department of Tourism and Colliers International Thailand Research

Tourism in the Pakchong district is the highest in winter from 4Q to 1Q each year. Thais are the main target group for hotels and resorts in Pakchong, representing around 95% of the total number. The increase 2011 set a record. This was especially true in the second quarter when

it surpassed 750,000 visitors because of the promotional and marketing campaigns conducted by the Department of Tourism and the Tourism Authority of Thailand (TAT) as well as hotel and resorts which also launched their marketing campaigns to build up the number of tourists.

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KHAO YAI RESIDENTIAL REpORT | mAY 2012

touriSt arrivalS to Khao yai national parK

source: department of national Parks, Wildlife and Plant Conservation and Colliers international thailand Research

Khao Yai was registered as a World heritage site in 2005 and this increased the number of tourists in 2006 by around 144% from 2005. however, the department of national Parks, Wildlife and Plant

Conservation still control the number of tourists. thais are the main group of tourists visiting Khao Yai national Park and only 5% are foreigners.

forEign touriSt arrivalS at Khao yai national parK

source: department of national Parks, Wildlife and Plant Conservation and Colliers international thailand Research

Foreign tourists are a small group for Khao Yai. the demand for residences in Khao Yai is different from other tourist destinations in thailand. the main buyers are thai people looking for second homes

there. Foreign buyers still prefer areas at the beach or not far from the beach so Khao Yai is not their destination of choice at the moment.

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KHAO YAI RESIDENTIAL REpORT | mAY 2012

hot iSSuES

italian StylE
in the past 40 to 50 years, Khao Yai started as a texas Cowboy city. it began with dairy farms and became more visible in 1990 when hotel developments started with a cowboy concept. since then, anyone who wanted a cowboy experience went to Khao Yai. the cowboy city still remains today and can be noticed in the architectural designs of hotels, resorts and restaurants. the cowboy concept has slowed down over the past 10 years the new architectural design that is popular and has attracted people in recent years is the tuscany style. in the early days, people who visited Khao Yai were above 45 years old or people who came with their families to enjoy the mountains. ever since the launch of the two famous community malls, Primo Posto del Khao Yai in 2007 and Palio Khao Yai in 2009, many young people now visit Khao Yai to photograph the beautifully coloured buildings. the colourful buildings in the italian style with a small vineyard behind the building at Primo Posto, and shopping, drinks or dinner in the italian-style village at Palio Khao Yai are attractions for tourists visiting Khao Yai. Moreover, new residential projects in the tuscany style also attract interest from buyers to Khao Yai. the toscana Valley and the eyrie Khao Yai are outstanding examples of tuscany-style projects.

advEnturE activitiES and agricultural touriSm

Khao Yai is not just a nature lovers tourist destination. during the past four to five years many tourists visited Khao Yai for the adventure activities provided at the hotels, resorts, dairy farms and vineyards. the best adventure activity in Khao Yai is life Park at the Greenery Resort, where there are many activities in the adventure park and the water park called aqua Zone. the Greenery Resort also hosts seminar groups at an international standard. the Bonanza adventure Park in Bonanza Resort is also one of the more popular adventure parks with cowboy experiences and activities. the most successful agricultural activities are at Farm Chokchai and PB Valley. tourists are able to create their own ice cream flavours at Farm Chokchai. their success story and products successfully attract a lot of tourists. PB Valley is the first vineyard in Khao Yai and they offer vineyard and winery tours including wine tasting which also attracts many tourists.

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KHAO YAI RESIDENTIAL REpORT | mAY 2012

outlooK
Most residential projects in the Khao Yai area are located in the central area along thanarat Road, but in the past few years many developers have begun to build their projects in other locations. the road to Wangnamkiao in the eastern area has been the most popular for the past five years, and many projects were started along this road, most of them luxury residential projects. the central area has maintained its popularity for next few years, due to most of the facilities in Khao Yai being located in this area. during the past four to five years, some new condominium projects were launched in the Khao Yai area. these were very welcome and have a high take-up rate as younger buyers moving to Khao Yai prefer cheaper residential units with lower maintenance costs in the same location as luxury villa projects and condominium projects. the other reason for the increase in the number of condominium projects in Khao Yai is the increasing land prices there. some locations have increased by more than 40% over the past two years. thus, low-rise condominium projects became a new trend for Khao Yai over the past four to five years and will continue to increase in number in the near future. While houses and villas were still be the most popular in the future as they were in the past, due to most of buyers were people who need to stay in the greenery and more fresh breathe than Bangkok with their family on the weekends or after they retired. some well-known developers have already started their first projects in Khao Yai and several of them planed to enter the market. Vilailux development Co. ltd and Magnolia Quality development Corporation Co. ltd have also already launched their first project in Khao Yai, while sansiri Plc. was planned to launch a mixed-use project comprised of a resort and a new brand of villa and condominium project in 2012. Khao Yai is on the road to a new destination for property developers who need to find a less intensely competitive market, although demand in the area is still lower than in other markets and most of demand are from outside the Khao Yai area. Many residential projects were unveiled in the tuscany style and attracted a large number of buyers. Currently, the tuscany style is the most fashionable architectural design for all residential projects although some new projects are not of this design. in the past, the Cowboy style was most popular but at present this has changed and it has become less attractive.

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KHAO YAI RESIDENTIAL REpORT | mAY 2012

appEndix

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KHAO YAI RESIDENTIAL REpORT | mAY 2012 Zoning

cEntral arEa
this area covers both sides of thanarat Road starting from Mittraphap Road to the entrance of Khao Yai national Park. this is the main road and is the area that was initially developed in Khao Yai, starting with the Juldis Khao Yai resort and Bonanza Khao Yai which opened in 1987 and 1992, respectively. this area contains the most developments and represents the emerging hub of Khao Yai..

wEStErn arEa
Pansuk Kudkhla Road is the other main road connecting Mittraphap Road to Khao Yai. Residential projects only started to be developed over the last four to five years. Boonrawd Brewery Co. ltd has operated PB Valley Winery there since 1989.

EaStErn arEa
the is the new development area of Khao Yai with many high-end projects located along the Khao Yai Wang nam Khiao Road which connects to the Wang nam Khiao district.

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KHAO YAI RESIDENTIAL REPORT | MAY 2012 COLLIERS INTERNATIONAL THAILAND MANAGEMENT TEAM
PROJECT SALES & MARKETING Monchai Orawongpaisan | Senior Manager RESIDENTIAL SALES & LEASING Napaswan Chotephard | Manager RESEARCH Tony Picon | Associate Director Surachet Kongcheep | Senior Manager OFFICE & INDUSTRIAL SERVICES Narumon Rodsiravoraphat | Associate Director RETAIL SERVICES Asharawan Wachananont | Associate Director ADVISORY SERVICES | HOSPITALITY Jean Marc Garret | Director ADVISORY SERVICES Napatr Tienchutima | Associate Director REAL ESTATE MANAGEMENT SERVICES Prasert Saiphrawan | Senior Manager INVESTMENT SERVICES Nukarn Suwatikul | Associate Director Wasan Rattanakijjanukul | Senior Manager VALUATION & ADVISORY SERVICES Phachsanun Phormthananunta | Director Wanida Suksuwan | Associate Director PATTAYA OFFICE Mark Bowling | Senior Sales Manager Supannee Starojitski | Senior Business Development Manager / O HUA HIN OFFICE Sunchai Kooakachai | Senior Manager

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