The Real Estate Information Center of the Government Housing Bank (REIC) reports on the overall housing market situation in the southern region, covering four provinces: Phuket, Songkhla, Surat Thani, and Nakhon Si Thammarat, for the first half of 2022. In terms of available supply at the beginning of the period, or Total Supply, and new projects launched (New Supply), the number of projects and units decreased compared to the same period last year (YoY), but their value increased. Regarding new sales, the number of units and value increased in the first half of 2022 compared to the same period last year. Meanwhile, the remaining unsold units at the end of the period decreased, but the value of unsold units increased, resulting in an increased absorption rate per month for the housing market in the south, indicating a positive trend in the southern housing market following the COVID-19 situation.

Dr. Vichai Wiratthakhan, the inspector of the Government Housing Bank and acting director of the Real Estate Information Center, revealed that there were no new condominium projects launched in the southern region, but there were new housing development projects spread across all four provinces. This indicates that horizontal housing development projects are recovering more than condominium projects, with a clear recovery in the housing market in Phuket, marked by new project launches and increased new sales. In contrast, Songkhla, Surat Thani, and Nakhon Si Thammarat are stable in terms of new project launches, while sales are improving.

According to the survey of housing projects for sale in the southern region during the first half of 2022, there were 16,203 units valued at 71,990 million baht, which is a decrease from the first half of 2021 in both the number of units and value, with a decrease of -3.0% in units and -1.3% in value compared to the total number of units offered in the first half of 2021.

No New Condominium Projects Launched in the First Half of the Year

Of the total, there were 4,946 condominium units valued at 22,662 million baht and 11,257 housing development units valued at 49,328 million baht. There were 792 new units entering the market valued at 4,071 million baht, and 2,551 new units sold valued at 10,592 million baht, resulting in 13,652 unsold units valued at 61,398 million baht. All new projects entering the market were housing developments, with 792 units valued at 4,071 million baht, a decrease of -42.9% in units and -29.9% in value compared to the first half of 2021.

Overall, it is evident that there were no new condominium projects launched in the first half of 2022, while housing development projects were distributed across various locations such as Koh Kaew - Rassada, Nam Noi, and Koh Yao - Bo Yang.

The top five locations with the most projects for sale in the southern region are: 1) Thepkrasattri - Si Sunthon with 1,909 units valued at 7,786 million baht, 2) Nai Yang Beach - Mai Khao Beach with 1,122 units valued at 3,790 million baht, 3) Bang Tao Beach - Surin Beach with 1,086 units valued at 5,525 million baht, 4) Koh Kaew - Rassada with 1,063 units valued at 7,864 million baht, and 5) Phatthanakarn - Khu Khwang with 973 units valued at 4,742 million baht.

For housing development projects with the most units for sale in the southern region, the top five locations are: 1) Thepkrasattri - Si Sunthon with 1,674 units valued at 6,179 million baht, 2) Koh Kaew - Rassada with 1,017 units valued at 7,797 million baht, 3) Phatthanakarn - Khu Khwang with 973 units valued at 4,742 million baht, 4) Om Khae with 901 units valued at 3,038 million baht, and 5) Tha Kham - Khuan Hin with 862 units valued at 3,724 million baht.

For condominium projects with the most units for sale in the southern region, the top five locations are: 1) Bang Tao Beach - Surin Beach with 1,086 units valued at 5,525 million baht, 2) Nai Yang Beach - Mai Khao Beach with 922 units valued at 3,307 million baht, 3) Kamala Beach with 742 units valued at 4,220 million baht, 4) Rawai Beach with 474 units valued at 2,904 million baht, and 5) Talat Yai - Talat Nuea with 431 units valued at 1,307 million baht.

Regarding the situation of unsold units in the southern region as of the first half of 2022, there were 13,652 units, a decrease of -10.1% from the first quarter, valued at 61,398 million baht, a decrease of -8.6%. This includes 3,958 condominium units valued at 18,604 million baht, with the top three locations having the highest number of unsold condominiums being: 1) Nai Yang Beach - Mai Khao Beach with 838 units valued at 3,057 million baht, 2) Bang Tao Beach - Surin Beach with 752 units valued at 3,968 million baht, and 3) Kamala Beach with 675 units valued at 3,719 million baht.

For housing development projects, there were a total of 9,694 unsold units valued at 42,794 million baht, with the top three locations being: 1) Thepkrasattri - Si Sunthon with 1,524 units valued at 5,637 million baht, 2) Koh Kaew - Rassada with 921 units valued at 7,158 million baht, and 3) Phatthanakarn - Khu Khwang with 765 units valued at 3,855 million baht. It can be observed that most of the unsold units are single-family homes.

Demand

In terms of housing demand, during the first half of 2022, there were 2,551 new units sold valued at 10,592 million baht, divided into 998 condominium units valued at 4,058 million baht and 1,563 housing development units valued at 6,534 million baht. The top three locations with the highest number of new condominium sales were: 1) Bang Tao Beach - Surin Beach with 334 units valued at 1,558 million baht, 2) Talat Yai - Talat Nuea with 234 units valued at 617 million baht, and 3) Rawai Beach with 89 units valued at 502 million baht.

Meanwhile, the new sales of housing development projects totaled 1,563 units valued at 6,534 million baht, with the top three locations having the highest sales being: 1) Phatthanakarn - Khu Khwang with 208 units valued at 886 million baht, 2) Om Khae with 208 units valued at 716 million baht, and 3) Khun Thale with 185 units valued at 665 million baht. The first and second rankings have the same number of units but differ in sales value.

However, when considering the absorption rate by housing type, it was found that in the first half of 2022, the overall absorption rate across all types was 2.6%, with the best absorption rate being for condominiums at 3.3%.

The top five locations with the highest absorption rates for condominium projects were: 1) Koh Yao - Bo Yang with an absorption rate of 13.3%, 2) Talat Yai - Talat Nuea with an absorption rate of 9.0%, 3) Khlong Toei with an absorption rate of 7.9%, 4) Bang Tao Beach - Surin Beach with an absorption rate of 5.1%, and 5) Rawai Beach with an absorption rate of 3.1%.

2022 Overview of the Four Southern Provinces

For 2022, the Real Estate Information Center estimates the overall housing market in the southern region's four provinces, predicting that there will be 6,030 new units launched, an increase of 85.5% compared to 2021, which had 3,251 units. The value of new launches is estimated at 25,849 million baht, an increase of 101.7% compared to the previous year, which had a value of 12,818 million baht. The number of new units sold is expected to be 5,495 units, an increase of 56.4% compared to 2021, which had 3,513 units, with a new sales value of 22,922 million baht, an increase of 67.7% compared to the previous year, which had a value of 13,671 million baht.

There will be 18,638 unsold units, an increase of 21.1% compared to 2021, which had 15,394 units, with a value of unsold units at 80,608 million baht, an increase of 17.9% from 68,373 million baht. The absorption rate in the horizontal project segment remains at 1.8%, while the condominium absorption rate is expected to increase from 1.5% in 2021 to 2.8% in 2022.

When considering the area, the Real Estate Information Center predicts that in 2022, Phuket will have 3,280 new housing units entering the market, an increase of 333.3%, valued at 17,249 million baht, an increase of 465.4% compared to 2021. The number of new units sold is expected to be 3,077 units, valued at 15,306 million baht, with an increase of 125.1% in units and 140.0% in value compared to 2021. The number of unsold units is expected to be 9,846 units, valued at 50,515 million baht, with an increase of 29.7% in units and 32.3% in value compared to 2021.

In Songkhla, it is predicted that there will be 1,584 new housing units entering the market, valued at 4,780 million baht, with an increase of 52.6% in units and 57.0% in value compared to 2021. The number of new units sold is expected to be 1,435 units, valued at 4,532 million baht, with an increase of 34.1% in units and 23.7% in value compared to 2021. The number of unsold units is expected to be 4,038 units, valued at 14,213 million baht, with an increase of 20.4% in units and 8.8% in value compared to 2021.

In Surat Thani, it is predicted that there will be 892 new housing units entering the market, valued at 2,624 million baht, with an increase of 2.1% in units and a decrease of -24.1% in value compared to 2021. The number of new units sold is expected to be 720 units, valued at 2,164 million baht, with a decrease of -1.1% in units and -4.7% in value compared to 2021. The number of unsold units is expected to be 3,059 units, valued at 9,560 million baht, with an increase of 26.3% in units and 11.8% in value compared to 2021.

In Nakhon Si Thammarat, it is predicted that there will be 274 new housing units entering the market, valued at 1,196 million baht, with a decrease of -52.9% in units and -63.4% in value compared to 2021. The number of new units sold is expected to be 263 units, valued at 922 million baht, with a decrease of -27.7% in units and -32.1% in value compared to 2021. The number of unsold units is expected to be 2,220 units, valued at 8,783 million baht, with a decrease of -9.6% in units and -2.5% in value compared to 2021.