The Real Estate Information Center of the Government Housing Bank (REIC) <\/strong><\/span>reported the results of a field survey of housing projects in the Bangkok and surrounding areas <\/strong><\/span>for the second quarter of 2022, indicating that the supply situation has increased significantly <\/strong><\/span>while demand has begun to slow down in certain price segments and locations, resulting in over 176,000 unsold units valued at over 860 billion baht. The absorption rate has decreased, and the situation is starting to slow down again.<\/strong><\/span><\/p>

New housing supply is concentrated in the high-end segment for single-family homes, while condominiums are clustered in the price range of up to 3 million baht.<\/strong><\/span><\/p>

Dr. Vichai Wiratthakhan, Inspector of the Government Housing Bank and Acting Director of the Real Estate Information Center,<\/strong><\/span> revealed that the survey of housing projects found movements in supply, with a total supply of 199,949 units valued at 976,823 million baht in the market as of the second quarter of 2022. The number of units increased by only 0.02% from the previous quarter, while the value rose by 3.32%. This increase is minimal. Among these, there are 28,334 new housing units for sale valued at 136,577 million baht, with 23,476 units sold in the second quarter of 2022, valued at 116,488 million baht, and 176,473 unsold units valued at 860,335 million baht.<\/p>

Of the 199,949 units offered for sale, 119,483 are single-family home projects valued at 624,876 million baht, and 80,466 are condominium projects valued at 351,947 million baht. The areas with the highest number of single-family home projects for sale are as follows: 1st place: Lam Luk Ka-Khlong Luang-Thanyaburi-Nong Suea area with 21,722 units valued at 77,011 million baht; 2nd place: Bang Phli-Bang Bo-Bang Sao Thong area with 17,441 units valued at 104,033 million baht; 3rd place: Bang Yai-Bang Bua Thong-Bang Kruai-Sai Noi area with 16,771 units valued at 75,685 million baht; 4th place: Samut Prakan-Mueang Phra Pradaeng-Phra Samut Chedi area with 10,276 units valued at 38,925 million baht; 5th place: Pathum-Thani-Lat Lum Kaeo-Sam Khok area with 9,747 units valued at 37,214 million baht.<\/p>

For the areas with the highest number of condominium projects for sale, the top 5 are:<\/span><\/p>

1st place: Huai Khwang-Jatujak-Din Daeng area with 11,049 units valued at 46,433 million baht.<\/p>

2nd place: Thonburi-Khlong San-Bangkok Noi-Bangkok Yai-Bang Phlat area with 10,157 units valued at 34,279 million baht.<\/p>

3rd place: Phra Khanong-Bang Na-Suan Luang-Pravet area with 8,520 units valued at 24,977 million baht.<\/p>

4th place: Nonthaburi-Pak Kret area with 7,945 units valued at 17,872 million baht.<\/p>

5th place: Sukhumvit area with 5,829 units valued at 66,079 million baht.<\/p>

 <\/p>

In the newly launched projects, it was found that in the second quarter of 2022, there were 28,334 new housing units for sale valued at 136,577 million baht.<\/strong><\/span> This value of new project launches is higher than the second half of 2021 (the last 6 months), which had 32,818 new units valued at 132,530 million baht. In the category of single-family homes, townhouses, and duplexes, new launches increased compared to the previous quarter, while condominiums saw a decrease in launches compared to the previous quarter, with 16,154 units valued at 44,586 million baht and single-family home projects at 12,180 units valued at 91,990 million baht.<\/p>

From the survey, the areas with the highest number of newly launched condominium projects are:<\/strong><\/span><\/p>

1st place: Thonburi-Khlong San-Bangkok Noi-Bangkok Yai-Bang Phlat area with 4,339 units valued at 8,766 million baht.<\/p>

2nd place: Nonthaburi-Pak Kret area with 2,854 units valued at 5,415 million baht.<\/p>

3rd place: Lam Luk Ka-Khlong Luang-Thanyaburi-Nong Suea area with 2,191 units valued at 4,074 million baht.<\/p>

4th place: Huai Khwang-Jatujak-Din Daeng area with 1,407 units valued at 3,189 million baht.<\/p>

5th place: Lat Phrao-Wang Thonglang-Bang Kapi area with 982 units valued at 3,039 million baht.<\/p>

 <\/p>

For the single-family home projects, the areas with the highest number of new launches are:<\/strong><\/span><\/p>

1st place: Bang Phli-Bang Bo-Bang Sao Thong area with 2,866 units valued at 35,744 million baht.<\/p>

2nd place: Bang Yai-Bang Bua Thong-Bang Kruai-Sai Noi area with 2,150 units valued at 10,078 million baht.<\/p>

3rd place: Lak Si-Don Mueang-Sai Mai-Bang Khen area with 914 units valued at 5,586 million baht.<\/p>

4th place: Samut Prakan-Mueang Phra Pradaeng-Phra Samut Chedi area with 878 units valued at 3,070 million baht.<\/p>

5th place: Pathum Thani-Lat Lum Kaeo-Sam Khok area with 817 units valued at 3,422 million baht.<\/p>

It is noteworthy that the new project launches in the second quarter of 2022 show that newly launched condominium projects are clustered in the price range of 1.01-1.50 million baht with 5,045 units and in the range of 2.01-3.00 million baht with 4,553 units. Single-family homes are clustered in the price range of 3.01-5.00 million baht with 4,196 units and in the range of 2.01-3.00 million baht with 2,854 units. Particularly, in the top 5 locations with the highest number of new launches, single-family home projects are being launched in the price segment above 10 million baht in the Bang Phli-Bang Bo-Bang Sao Thong area, while newly launched condominium projects are clustered in the price range of up to 3 million baht.<\/span><\/p>

 <\/p>

New sales demand in the second quarter shows a decrease in absorption rates for homes priced below 1.5 million baht and above 20 million baht, requiring increased caution.<\/strong><\/span>

Regarding the demand situation, the survey found that new sales in the second quarter totaled 23,476 units valued at 116,488 million baht, which is a decrease in both the number and value of new sales compared to the first quarter of 2022, which had 30,070 units valued at 135,801 million baht. Among these, there were 13,491 newly sold condominium units valued at 51,152 million baht and 9,985 single-family home units valued at 65,336 million baht.<\/p>

For the top 5 locations with the highest sales for condominium projects:<\/strong><\/span>

1st place: Thonburi-Khlong San-Bangkok Noi-Bangkok Yai-Bang Phlat area with 3,308 units valued at 12,076 million baht.<\/p>

2nd place: Huai Khwang-Jatujak-Din Daeng area with 1,553 units valued at 5,738 million baht.<\/p>

3rd place: Phra Khanong-Bang Na-Suan Luang-Pravet area with 1,514 units valued at 4,515 million baht.<\/p>

4th place: Lam Luk Ka-Khlong Luang-Thanyaburi-Nong Suea area with 1,140 units valued at 2,092 million baht.<\/p>

5th place: Nonthaburi-Pak Kret area with 843 units valued at 1,639 million baht.<\/p>

 <\/p>

For the single-family home projects, the top 5 locations with the highest sales are:<\/strong><\/span>

1st place: Bang Phli-Bang Bo-Bang Sao Thong area with 1,728 units valued at 14,764 million baht.<\/p>

2nd place: Lam Luk Ka-Khlong Luang-Thanyaburi-Nong Suea area with 1,083 units valued at 3,879 million baht.<\/p>

3rd place: Bang Yai-Bang Bua Thong-Bang Kruai-Sai Noi area with 1,071 units valued at 5,057 million baht.<\/p>

4th place: Samut Prakan-Mueang Phra Pradaeng-Phra Samut Chedi area with 857 units valued at 3,335 million baht.<\/p>

5th place: Lak Si-Don Mueang-Sai Mai-Bang Khen area with 820 units valued at 5,586 million baht.<\/p>

 <\/p>

However, when considering the absorption rate per month in the second quarter of 2022, the overall absorption rate for all types of housing is at 3.9% per month, down from 5.0% per month in the first quarter. The absorption rate for condominium projects decreased from 7.8% in the first quarter to 5.6% in the second quarter of 2022, while the absorption rate for single-family homes dropped from 3.0% in the previous quarter to 2.7% in the second quarter of 2022.<\/strong><\/span>

When separated by housing price levels, it was found that certain price segments of newly launched housing require special attention and caution, particularly the segment priced at 1.01-1.50 million baht, which saw a significant decrease in absorption from 13.6% in the first quarter to 8.3% in the second quarter of 2022, and the segment priced above 20 million baht, which decreased from 6.5% in the first quarter to 4.6% in the second quarter of 2022, indicating a significant slowdown in sales.<\/p>

However, when considering new sales units and absorption rates per month sorted by the highest new sales locations in the second quarter of 2022, it was found that the Thonburi-Khlong San-Bangkok Noi-Bangkok Yai-Bang Phlat area had the highest absorption rate at 10.9% per month with the highest number of new sales units at 3,486. The Phra Khanong-Bang Na-Suan Luang-Pravet area is another noteworthy location, as it had the fourth highest number of new sales units at 1,863, while having the second highest absorption rate at 5.7% per month.<\/p>

For condominium projects, the area with the highest absorption rate is the Thonburi-Khlong San-Bangkok Noi-Bangkok Yai-Bang Phlat area, with an absorption rate of 10.9% per month and the highest number of new sales units at 3,308. The price segment with the highest sales is in the range of 2.01-3.00 million baht, while for single-family home projects, the area with the highest new sales units is Bang Phli-Bang Bo-Bang Sao Thong, with an absorption rate of 3.3% per month and the highest number of new sales units at 1,728, with the highest sales segment being in the range of 3.01-5.00 million baht.<\/p>

There are over 176,000 unsold units valued at over 860 billion baht, and the situation is starting to slow down.<\/strong><\/span>

With the absorption rate declining in many locations and across various price segments, this is a significant reason for the increase in unsold units as of the second quarter of 2022. Therefore, caution is still needed when launching new projects. In the Bangkok and surrounding areas, there are a total of 176,473 unsold units valued at 860,335 million baht, comprising 66,975 condominium units valued at 300,795 million baht and 109,498 single-family home units valued at 559,540 million baht.<\/p>

The areas with the highest number of unsold condominium projects are:<\/strong><\/span>

1st place: Huai Khwang-Jatujak-Din Daeng area with 9,496 units valued at 40,696 million baht.<\/p>

2nd place: Nonthaburi-Pak Kret area with 7,102 units valued at 16,233 million baht.<\/p>

3rd place: Phra Khanong-Bang Na-Suan Luang-Pravet area with 7,006 units valued at 20,462 million baht.<\/p>

4th place: Thonburi-Khlong San-Bangkok Noi-Bangkok Yai-Bang Phlat area with 6,849 units valued at 22,202 million baht.<\/p>

5th place: Sukhumvit area with 5,344 units valued at 61,151 million baht.<\/p>

 <\/p>

Meanwhile, the single-family home projects with the highest number of unsold units are:<\/strong><\/span>

1st place: Lam Luk Ka-Khlong Luang-Thanyaburi-Nong Suea area with 20,639 unsold units valued at 73,132 million baht.<\/p>

2nd place: Bang Phli-Bang Bo-Bang Sao Thong area with 15,713 unsold units valued at 89,269 million baht.<\/p>

3rd place: Bang Yai-Bang Bua Thong-Bang Kruai-Sai Noi area with 15,700 unsold units valued at 70,628 million baht.<\/p>

4th place: Samut Prakan-Mueang Phra Pradaeng-Phra Samut Chedi area with 9,419 unsold units valued at 35,589 million baht.<\/p>

5th place: Pathum Thani-Lat Lum Kaeo-Sam Khok area with 9,151 unsold units valued at 34,599 million baht.<\/p>

 <\/p>

The Real Estate Information Center <\/strong><\/span> predicts that in 2022, the supply of new project launches will total 83,608 units valued at 386,757 million baht, an increase of 62.2% in number and 76.6% in value compared to 2021, which had 51,531 units valued at 218,948 million baht. It is expected that there will be a total of 203,201 unsold units valued at 959,382 million baht, an increase of 23.2% in number and 20.1% in value.<\/p>

Regarding demand,<\/strong><\/span> it is predicted that in 2022, there will be approximately 77,223 new sales units, an increase of 24.7% from 2021, which had 61,914 units, while the value will be 346,388 million baht, an increase of 16.1% from 2021, which had 298,381 million baht.<\/p>

The survey data reflecting the expansion of new housing launches and new housing sales in the second quarter of 2022 indicates a slowdown in demand in the market, primarily due to a lack of confidence in income and facing significant risk factors from rising inflation due to oil price adjustments and the increase in living costs resulting from rising consumer goods prices. Therefore, if interest rates increase, it could hinder the momentum of recovery in Thailand's overall economy, particularly affecting the recovery of the housing market and potentially leading to a slowdown in the overall economy and the real estate sector.