Dr. Wichai Wiratkhapan Inspector of the Government Housing Bank and Acting Director of the Real Estate Information Center (REIC) stated that a survey of the overall housing market in the southern region (Phuket, Songkhla, Nakhon Si Thammarat, and Surat Thani) during the first half of 2021 showed a significant slowdown in the supply of new units for sale, with only 1,386 units entering the market, a decrease of 20.3%, amounting to a total value of 5.811 billion baht, down 38.6%. This decline was seen in both condominium and housing development sales, decreasing by 27.9% and 17.7% respectively.

As a result, the total supply of residential units sold in the southern region amounted to 16,701 units, a decrease of 1.7%, with a total value of 72.956 billion baht, down 1.8%

 

In Phuket and Songkhla, developers have slowed down new project developments, with a decrease of 88.7% and 16.7% respectively. In contrast, Surat Thani saw an increase in new project developments by 844.1% compared to the same period last year, while Nakhon Si Thammarat also experienced an increase in new housing projects, having had no new units for sale in the previous year.
 

Overall, the demand for newly sold units has increased by 7.5%, approximately 1,508 units, and 2.1% in value, totaling 5.479 billion baht. This resulted in approximately 15,193 units remaining on the market, with a total value of about 67.207 billion baht, reflecting a decrease in both unit numbers and value by 2.6% and 2.1% respectively, with the remaining housing units decreasing by 4.9%, while remaining condominium units increased by 1.9%.
            For 2022, it is expected that if vaccine distribution is widespread, the housing situation will improve, leading to at least 5,799 new residential units entering the market, with a total value of approximately 24.994 billion baht. This will be divided into:

Housing projects of approximately 3,011 units, with a total value of approximately 12.066 billion baht

Condominium projects of approximately 2,788 units, with a total value of approximately 12.928 billion baht

 

            It is anticipated that in the first half of 2022, the growth rate of new housing project units will increase by 76.3% compared to the first half of 2021, and it is expected that in 2022, there will be approximately 5,272 new units sold, with a total value of 21.889 billion baht, resulting in a decrease in accumulated unsold units to approximately 15,302 units, down 0.2%, with a total value of approximately 65.847 billion baht, consisting of:

Housing projects of approximately 9,890 units, with a total value of approximately 38.485 billion baht

Condominium projects of approximately 5,412 units, with a total value of approximately 27.362 billion baht

The absorption rate is expected to start improving from the first half of 2022 and will become more evident in the second half of 2022 onwards.