The Real Estate Information Center of the Government Housing Bank (REIC) has reported an overview of the housing market situation in the Eastern Economic Corridor (EEC) across three provinces: Chonburi, Rayong, and Chachoengsao. It has been observed that there is a recovery starting in the first quarter of 2022. As we entered the second quarter of 2022, the total supply of available housing projects increased, but the number of units and their value decreased compared to the previous quarter (QoQ). In this quarter, new supply increased in terms of the number of projects, units, and value. Demand for new sales also rose in both units and value compared to the previous quarter, leading to a reduction in unsold units and an increase in the monthly absorption rate of the housing market in the EEC, indicating a positive trend in the housing market post-COVID-19.

Dr. Vichai Wiratkhapan, Inspector of the Government Housing Bank and Acting Director of the Real Estate Information Center revealed that a survey of housing projects for sale in the three provinces during the second quarter of 2022 found a total of 59,541 units valued at 205,352 million baht. This includes 20,034 condominium units valued at 88,120 million baht and 39,507 housing projects valued at 117,231 million baht. There were 3,522 new units entering the market valued at 13,812 million baht, with 7,868 units sold valued at 24,880 million baht, resulting in 51,673 unsold units valued at 180,472 million baht.

In terms of supply, the total housing available for sale in the second quarter of 2022 decreased from the first quarter of 2022, both in terms of the number of units and value. The number of units decreased by -6.71% and the value decreased by -3.97% compared to the total number of units available in the first quarter of 2022. However, the number of units available increased with 3,522 new projects entering the market, valued at 13,812 million baht, showing an increase of 19.14% in units and 37.06% in value from the first quarter, with condominiums accounting for only 882 units valued at 3,518 million baht and housing projects accounting for 2,640 units valued at 10,295 million baht.

Overall, it can be seen that new condominium projects launched in the second quarter were primarily concentrated in just two locations: Sriracha-Assumption and Jomtien Beach. Meanwhile, housing projects are distributed across various locations, mostly in industrial estate areas and near urban zones, such as Amata City Eastern Industrial Estate, Rayong City, Sriracha-Assumption, and Laem Chabang.

The five locations with the most projects for sale in the three EEC provinces are:

1. Jomtien Beach: 7,671 units, project value 35,659 million baht

2. Pattaya-Khao Phra Tamnak: 5,254 units, project value 29,490 million baht

3. Laem Chabang: 1,901 units, project value 3,487 million baht

4. Sriracha-Assumption: 1,443 units, project value 4,365 million baht

5. Map Ta Phut Industrial Estate: 831 units, project value 2,043 million baht

As for the situation of unsold units in the EEC as of the second quarter of 2022, there are 51,673 units, a decrease of -7.8% from the first quarter, valued at 180,472 million baht, a decrease of -5.5%. This includes 18,088 condominium units valued at 80,629 million baht, with the top three locations having the most unsold condominiums being: 1) Jomtien zone: 7,129 units, project value 36,759 million baht; 2) Pattaya-Khao Phra Tamnak: 4,883 units, project value 27,316 million baht; 3) Laem Chabang: 1,709 units, project value 3,095 million baht. It is noticeable that even with new products entering the market, the number of unsold units has decreased, indicating an overall improvement.

For housing projects, there are a total of 33,585 unsold units valued at 99,843 million baht. The top three locations with the most unsold units are: 1) Amata City Eastern Industrial Estate: 6,069 units, project value 12,377 million baht; 2) Hemaraj Industrial Estate: 2,597 units, project value 6,522 million baht; 3) Phan Thong-Panassnikhom Industrial Estate: 2,576 units, project value 5,999 million baht. It is observed that the majority of unsold units are townhouses, accounting for 30.1% of the remaining housing projects.

In terms of demand, it was found that in the second quarter of 2022, 7,868 new housing units were sold, valued at 24,880 million baht, with only 1,946 condominium units valued at 7,491 million baht. The top three locations with the highest new condominium sales are: 1) Jomtien zone: 542 units, valued at 2,935 million baht; 2) Pattaya-Khao Phra Tamnak: 371 units, valued at 2,174 million baht; 3) Sriracha-Assumption: 303 units, valued at 731 million baht.

Meanwhile, new sales of housing projects totaled 5,922 units, valued at 17,389 million baht, with the top three locations for housing sales being: 1) Amata City Eastern Industrial Estate: 1,001 units, valued at 2,033 million baht; 2) Hemaraj Industrial Estate: 509 units, valued at 1,328 million baht; 3) Amata-Bypass Industrial Estate: 399 units, valued at 1,095 million baht, reflecting the recovery of the industrial estate areas benefiting from the industrial rebound.

The EEC housing market for housing projects is beginning to recover, with Chonburi seeing new condominiums entering the market.

Surveys indicate that new condominium projects are being launched in Chonburi, with only 882 units, while housing projects are being launched across all three provinces, showing that horizontal housing development projects are recovering more than condominium projects, especially in Rayong and Chachoengsao, where no new condominium projects have been launched but there has been a significant increase in housing projects.

When considering the absorption rates by housing type, it was found that in the second quarter of 2022, the overall absorption rate across all types was 4.4%, with the best absorption rate in the townhouse segment at 5.1%, while the absorption rate for condominiums increased to 3.2%.

The top five locations with the highest absorption rates for condominium projects

1) Sriracha-Assumption: 6.6%

2) Sahapat Industrial Estate-Pinthong: 5.8%

3) Amata Nakorn-Bypass: 5.6% and Ban Bueng: 5.6%

4) Bo Win Industrial Estate, Ban Suan-Side of the Pen, Ban Pho, Bang Nam Priao, and Klaeng: 5.5%

5) Sattahip-U-Tapao: 5.1%

“It is noteworthy that over 80% of the condominiums offered for sale in the EEC are located in Chonburi, while single houses are most concentrated in Rayong. The top five locations with the highest sales for horizontal projects remain connected to industrial estate areas, primarily in the price range of 2-3 million baht, while the best-selling condominium locations are along the coast, primarily in the price range of 3-5 million baht.”

However, it is noted that the number of unsold units in Chonburi may increase as the absorption rate is not yet satisfactory. Rayong needs to be cautious regarding single houses and condominiums, but it is believed that the number of unsold units will remain stable. Meanwhile, Chachoengsao shows an overall improvement. The overall situation in the eastern region or the three EEC provinces indicates that new launches will not yet reflect a positive adjustment as they remain stable, but a positive trend is expected in the future. Additionally, the launch of new condominium projects still requires caution.

In 2022, the overall picture of the three EEC provinces

For 2022, the Real Estate Information Center estimates the overall housing market in the three EEC provinces, predicting that there will be 20,270 new units launched, an increase of 51.9% compared to 2021, which had 13,340 units. The value of new launches is expected to be 63,346 million baht, an increase of 72.4% compared to the previous year, which had a value of 36,750 million baht. The number of new sales is expected to be 21,675 units, an increase of 7.3% compared to 2021, which had 20,192 units, with a new sales value of 65,774 million baht, an increase of 8.6% compared to the previous year, which had a value of 60,562 million baht.

The number of unsold units is expected to be 72,516 units, an increase of 19.9% compared to 2021, which had 60,480 units, with a value of unsold units at 229,381 million baht, an increase of 12.5% from 203,891 million baht. The absorption rate in the horizontal project segment has decreased to 2.1%, while the absorption rate for condominiums is expected to increase from 1.9% in 2021 to 2.1% in 2022.

When considering by area, the Real Estate Information Center predicts that in 2022, Chonburi will have 12,513 new housing units entering the market, an increase of 99.9%, valued at 44,376 million baht, with a value increase of 181.2% compared to 2021. The number of new sales is expected to be 13,916 units, valued at 46,494 million baht, with an increase of 14.8% in units and 18.4% in value compared to 2021. The number of unsold units is expected to be 47,951 units, valued at 167,014 million baht, with an increase of 30.1% in units and 19.0% in value compared to 2021.

Rayong is expected to have 6,097 new housing units entering the market, valued at 14,679 million baht, with an increase of 13.3% in units and a decrease of -8.9% in value compared to 2021. The number of new sales is expected to be 5,841 units, valued at 13,989 million baht, with a decrease of -7.0% in units and -13.3% in value compared to 2021. The number of unsold units is expected to be 18,128 units, valued at 51,256 million baht, with an increase of 3.1% in units and 12.2% in value compared to 2021.

Chachoengsao is expected to have 1,658 new housing units entering the market, valued at 4,292 million baht, with a decrease of -2.5% in units and -11.6% in value compared to 2021. The number of new sales is expected to be 1,918 units, valued at 5,294 million baht, with an increase of 7.2% in units and 2.5% in value compared to 2021. The number of unsold units is expected to be 6,437 units, valued at 17,986 million baht, with an increase of 6.8% in units and 0.7% in value compared to 2021.