The Real Estate Information Center reports a summary of the supply and demand survey for residential projects currently for sale in the second half of 2021 in the Eastern region, which includes Chonburi, Rayong, and Chachoengsao provinces, or the area of the Eastern Economic Corridor (EEC). The survey focused on projects with at least 6 units available for sale. At the end of 2021, there were a total of 1,087 residential projects with 71,831 units available, valued at 238.253 billion baht. This represents a decrease of 5.2% in the number of units compared to the same period in 2020 and a decrease of 6.9% in value compared to the previous year.

These projects included 48,898 units of single-family homes valued at 138.271 billion baht and 22,933 units of condominiums valued at 99.981 billion baht. Only 7,588 new units were launched in the second half of the year, comprising 5,124 single-family homes valued at 16.051 billion baht and 2,464 condominiums valued at 6.472 billion baht. Consequently, the total number of unsold units in the three EEC provinces amounted to 60,480 units, a decrease of 6.8% from the previous year, with a total unsold value of 203.892 billion baht, down 8.3% from the previous year.

In terms of sales activity, 11,351 new units were sold in the second half of 2021, representing a 4.0% increase, with a total sales value of 34.361 billion baht, up 2.4% compared to the same period the previous year. Among these, approximately 8,348 units of single-family homes were sold, an increase of 4.4%, with a value of 23.145 billion baht, up 6.5%. Meanwhile, 3,003 units of condominiums were sold, marking a 2.7% increase, with a value of 11.216 billion baht, down 5.2%. This resulted in a slight improvement in the absorption rate, which increased from 2.4% at the end of 2020 to 2.6% at the end of 2021.

Dr. Vichai Viratakphan, Inspector of the Government Housing Bank and Acting Director of the Real Estate Information Center stated that over the past two years, under the COVID-19 pandemic, the investment in residential project development in the EEC area has undergone significant changes in both demand and supply. As we entered the second half of 2021, the overall situation began to recover as developers reduced the influx of new supply into the market, leading to an improved absorption rate and a decrease in unsold units, particularly in Chonburi province, where unsold units dropped by 13.2% and their value decreased by 14.2%. Chachoengsao province saw the highest increase in new sales units at 39.4%, with new sales value increasing by 43.0%, primarily driven by single-family home sales.

Overall, the housing market situation in Chonburi province is showing signs of improvement, as the number of unsold residential units in 2021 totaled 43,393 units, down 12.0%, with a value of 161.747 billion baht, down 13.4% compared to the same period the previous year. However, the number of new units entering the market has significantly decreased to 3,271 units, down 48.8%, with a value of 8.970 billion baht, down 63.1%. Although the number of new sales units and their value still showed a negative trend of 5.1%, with only 6,531 new sales units valued at 21.410 billion baht, the significant reduction in new products entering the market has resulted in an absorption rate rising to 2.5%.

Market Direction for Housing in the 3 EEC Provinces in 2022

For the housing market direction in 2022, the Real Estate Information Center predicts a period of recovery in both demand and supply. In terms of demand, it is anticipated that the overall number of new sales units in the 3 EEC provinces will increase by 7.3%, rising from 20,192 units in 2021 to 21,675 units in 2022. The sales value is expected to increase by 8.6%, from 60.562 billion baht in 2021 to 65.774 billion baht in 2022.

On the supply side, it is projected that new projects entering the market will increase by 51.9%, from 13,340 units in 2021 to 20,270 units in 2022. Meanwhile, the number of unsold units is expected to rise by 2.0%, increasing from 60,480 units in 2021 to 61,719 units in 2022, with a value decrease of 4.4%, from 203.891 billion baht in 2021 to 195.017 billion baht in 2022. The overall absorption rate is expected to remain at 2.5%.

However, Dr. Vichai Viratakphan further stated that in 2022, the housing market in Chonburi province is expected to recover significantly after experiencing a prolonged downturn since 2019, having passed its lowest point in 2021. It is projected that there will be 12,513 new units launched, an increase of 99.9%, valued at 44.376 billion baht, up 181.2%. It is anticipated that there will be 13,916 new sales units, an increase of 14.8%, valued at 46.494 billion baht, up 18.4%. The number of unsold units is also expected to rise due to the launch of new projects, with an estimated 40,901 unsold units, an increase of 11.0%, valued at 142.436 billion baht.

In Rayong and Chachoengsao provinces, the housing market is expected to remain stable. In Rayong, it is anticipated that there will be 6,097 new projects entering the market, an increase of 13.3%, valued at 14.679 billion baht, down 8.9%, with 5,841 new sales units, down 7.0%, valued at 13.989 billion baht, down 13.3%. The number of unsold units is expected to be 15,370, down 12.6%, with a value of 37.284 billion baht, down 18.4%.

In Chachoengsao, it is projected that there will be 1,658 new projects entering the market, a decrease of 2.5%, valued at 4.292 billion baht, down 11.6%, with 1,918 new sales units, an increase of 7.2%, valued at 5.294 billion baht, up 2.5%. The number of unsold units is expected to be 5,449, down 9.6%, with a value of 15.297 billion baht, down 14.4%.

It is noteworthy that recovery is still occurring in the single-family home project segment, both in terms of new project launches and new sales units. Although there has been an increase in new condominium project launches, it will still take time to recover in line with the overall economic situation of the country and the purchasing power of foreign investors returning to the market.