The Real Estate Information Center (REIC) of the Government Housing Bank has reported the results of its survey on residential projects currently for sale in the Eastern Economic Corridor (EEC) for Q3 2023. The survey focused on projects with at least six units available for sale. It was found that the overall number of residential units offered for sale (including housing estates and condominiums) in the three provinces of the EEC during Q1-Q3 2023 decreased compared to the same period in 2022. In Q3 2023, there were 51,550 units offered for sale, a decrease of -4.4% compared to the previous year, with a total value of 173.628 billion baht. This included 20,615 condominium units, which increased by 14.5% with a value of 75.583 billion baht, while the number of housing estate units offered for sale was 30,935, a decrease of -13.9%, valued at 98.045 billion baht.

The launch of new projects in the three provinces of the EEC saw a total of 8,078 units, an increase of 96.2%, with a total value of 29.445 billion baht. Q3 2023 marked the highest number of new launches in four years for both condominiums and housing estates. Of the new units launched, 53.5% were condominiums, with all new condominiums located in Chonburi province. Meanwhile, new housing estates were distributed approximately 46% in Chonburi, and around 27% each in Rayong and Chachoengsao provinces.

New sales units totaled 6,767, an increase of 0.4%, with a total value of 22.505 billion baht. This included 2,431 condominium units sold, an increase of 50.3%, valued at 8.678 billion baht. Almost all newly sold condominiums were in Chonburi province and were projects launched in the first three quarters. Housing estate sales totaled 4,336 units, a decrease of -15.4%, valued at 13.826 billion baht.

As a result of the number of newly launched condominiums exceeding the number sold, by the end of Q3 2023, the three provinces of the EEC had 18,184 unsold condominium units, an increase of 11.0%, with a total value of 66.905 billion baht. Although housing estate sales decreased compared to the previous year, the number of units sold was still significantly higher than the number of new launches, resulting in 26,599 unsold units, a decrease of -13.7% compared to the previous year, valued at 84.219 billion baht.

Dr. Vichai Wiratthakhan, Inspector of the Government Housing Bank and Acting Director of the Real Estate Information Center, commented on the overall situation, stating, “The overall housing market in the three provinces of the EEC has seen a lively launch of new projects since Q2 and Q3 2023, with about half of the new units being condominiums in Chonburi province. These projects have significantly boosted sales in the EEC area. It is noteworthy that well-selling condominium projects are typically those launched within the quarter or no more than two quarters prior. Many condominium projects launched earlier remain unsold and contribute to the accumulated inventory in the area, while nearly half of the new launches are housing estates.”

In the three provinces, it was found that while the housing estate market in the EEC has more new sales than new launches, leading to a continuous decrease in unsold units, sales in the first three quarters were lower than the previous year in every quarter,” the REIC reported on the housing market survey results in the EEC area for Q3 2023.

Chonburi Province: The survey results for housing projects in Chonburi province for Q3 2023 revealed:

  • Total residential units offered for sale: 31,756 units, a decrease of -4.5%, valued at 118.451 billion baht, consisting of 18,000 condominium units, an increase of 7.1%, valued at 69.780 billion baht, and 13,756 housing estate units, a decrease of -16.4%, valued at 48.671 billion baht.
  • Total new residential units launched: 6,029 units, an increase of 165.8%, valued at 23.338 billion baht, consisting of 4,322 condominium units, an increase of 245.8%, valued at 15.165 billion baht, and 1,707 housing estate units, an increase of 67.7%, valued at 8.174 billion baht.
  • Total new sales: 3,842 units, an increase of 3.6%, valued at 14.175 billion baht, with an absorption rate of 4.0% per month, consisting of 2,129 condominium units, an increase of 52.2%, valued at 7.992 billion baht, with an absorption rate of 3.9% per month, and 1,713 housing estate units, a decrease of -25.8%, valued at 6.183 billion baht, with an absorption rate of 4.2% per month.
  • Unsold residential units: 27,914 units, a decrease of -5.5%, valued at 104.276 billion baht, consisting of 15,871 condominium units, an increase of 3.1%, valued at 61.787 billion baht, and 12,043 housing estate units, a decrease of -14.9%, valued at 42.489 billion baht.
  • Top-selling condominium locations:
  1. Jomtien area, with 499 units sold and an absorption rate of 2.9% per month.
  2. Bang Saen-Nong Mon-Bang Phra area, with 419 units sold and an absorption rate of 7.9% per month.
  3. Pattaya-Khao Phra Tamnak area, with 400 units sold and an absorption rate of 3.4% per month, and Amata Industrial Estate-Bypass area, with 400 units sold and an absorption rate of 5.3% per month.
  • Top-selling housing estate locations:
  1. Panthong-Panasnikom area, with 304 units sold and an absorption rate of 4.6% per month.
  2. Bang Saen-Nong Mon-Bang Phra area, with 266 units sold and an absorption rate of 4.7% per month.
  3. Amata Industrial Estate-Bypass area, with 245 units sold and an absorption rate of 3.6% per month.
  • Condominium locations requiring caution due to high unsold units:
  1. Jomtien area, with 5,239 unsold units, expected to take 31 months to sell all.
  2. Pattaya-Khao Phra Tamnak area, with 3,579 unsold units, expected to take 26 months to sell all.
  3. Amata Industrial Estate-Bypass area, with 2,099 unsold units, expected to take 16 months to sell all.
  • Housing estate locations requiring caution due to high unsold units:
  1. Amata Industrial Estate-Bypass area, with 2,051 unsold units, expected to take 24 months to sell all.
  2. Panthong-Panasnikom area, with 1,906 unsold units, expected to take 19 months to sell all.
  3. Bang Saen-Nong Mon-Bang Phra area, with 1,638 unsold units, expected to take 18 months to sell all.
  4. Sahapat-Pinthong area, with 1,116 unsold units, expected to take 22 months to sell all.

Dr. Vichai Wiratthakhan further commented on property development in Chonburi province, stating, “REIC has found that developers from both central and regional areas are showing significant interest in developing residential projects in Chonburi province due to its economic base from tourism and industry. Between 2020 and 2022, there were few new project launches, and the market absorbed a considerable amount of supply. In Q2-Q3 2023, many condominium projects were launched, significantly boosting condominium sales in Chonburi. However, condominium sales remain lower than new launches, resulting in a continuous increase in unsold condominium inventory. For housing estates, fewer new projects are being launched to align with the decreasing demand for housing estates. It can be seen that in the first three quarters of 2023, sales have continuously decreased each quarter, but the overall unsold units of housing estates have been decreasing due to fewer new launches.”

As for the development of residential projects in Chonburi, REIC noted that these developments are often located in key tourist zones and major industrial zones. These areas, while having potential, have high competition, leading to a large number of unsold units. If sales are slow at the start of a project, there is a significant chance that units will remain unsold, becoming a cost burden for developers.

Rayong Province: The survey results for housing projects in Rayong province for Q3 2023 revealed:

  • Total residential units offered for sale: 12,338 units, a decrease of -13.3%, valued at 34.896 billion baht, consisting of 957 condominium units, a decrease of -11.8%, valued at 3.744 billion baht, and 11,381 housing estate units, a decrease of -13.4%, valued at 31.152 billion baht.
  • Total new residential units launched: 1,039 housing estate units, an increase of 61.3%, valued at 2.502 billion baht, primarily consisting of twin houses (about 44%), single houses, and townhouses (each about 28%).
  • Total new sales: 1,771 units, a decrease of -17.8%, valued at 4.978 billion baht, with an absorption rate of 4.8% per month, consisting of 145 condominium units, a decrease of -26.4%, valued at 478 million baht, with an absorption rate of 5.1% per month, and 1,626 housing estate units, a decrease of -17.0%, valued at 4.500 billion baht, with an absorption rate of 4.8% per month.
  • Unsold residential units: 10,567 units, a decrease of -12.5%, valued at 29.918 billion baht, consisting of 812 condominium units, a decrease of -8.6%, valued at 3.266 billion baht, and 9,755 housing estate units, a decrease of -12.8%, valued at 26.652 billion baht.
  • Top-selling condominium locations: remain in two main areas:
  1. Map Ta Phut area, with 90 units sold and an absorption rate of 4.3% per month.
  2. Rayong city area, with 52 units sold and an absorption rate of 7.5% per month.
  • Top-selling housing estate locations: remain in three main areas:
  1. Amata City-Eastern Industrial Estate area, with 621 units sold and an absorption rate of 4.6% per month.
  2. Hemaraj Industrial Estate area, with 491 units sold and an absorption rate of 5.4% per month.
  3. Map Ta Phut Industrial Estate area, with 225 units sold and an absorption rate of 3.6% per month.
  • Condominium locations requiring caution due to high unsold units:
  1. Map Ta Phut Industrial Estate area, with 605 unsold units, expected to take 20 months to sell all.
  • Housing estate locations requiring caution due to high unsold units:
  1. Amata City-Eastern Industrial Estate area, with 3,904 unsold units, expected to take 19 months to sell all.
  2. Hemaraj Industrial Estate area, with 2,559 unsold units, expected to take 14 months to sell all.
  3. Map Ta Phut Industrial Estate area, with 1,857 unsold units, expected to take 25 months to sell all.

Dr. Vichai Wiratthakhan further commented on property development in Rayong province, stating, “The housing market in Rayong province primarily consists of housing estates. It is evident that new sales of housing estates account for more than 90% of total sales, and there have been no new condominium project launches in the past two quarters. The housing estate market in Q1-Q3 2023 has adjusted downwards compared to 2022, but fortunately, the number of new project launches has been lower than new sales, leading to a decrease in the accumulated unsold units of housing estates. The condominium market in Rayong continues to perform, with natural sales expected to be around 100-200 units per quarter. Therefore, the remaining unsold units of 812 at the end of Q3 2023 should continue to be absorbed.”

REIC also noted that while these areas have good sales, they are also the same areas with high unsold units due to intense competition. Therefore, entering these development areas requires thorough market research and planning.

Chachoengsao Province: The survey results for housing projects in Chachoengsao province for Q3 2023 revealed:

  • Total residential units offered for sale: 7,456 units, an increase of 15.8%, valued at 20.281 billion baht, consisting of 1,658 condominium units, an increase of 1,367.3%, which are accumulated unsold units from new condominium project launches in Q4 2022 and Q1 2023, valued at 2.060 billion baht, and 5,798 housing estate units, a decrease of -8.3%, valued at 18.221 billion baht.
  • Total new residential units launched: 1,010 housing estate units, a decrease of -14.9%, valued at 3.605 billion baht, primarily consisting of single houses (35.6%), twin houses (46.5%), and townhouses (17.8%).
  • Total new sales: 1,154 units, an increase of 31.3%, valued at 3.351 billion baht, with an absorption rate of 5.2% per month, consisting of 157 condominium units, an increase of 647.6%, valued at 208 million baht, with an absorption rate of 3.2% per month, and 997 housing estate units, an increase of 16.2%, valued at 3.143 billion baht, with an absorption rate of 5.7% per month.
  • Unsold residential units: 6,302 units, an increase of 13.4%, valued at 16.930 billion baht, consisting of 1,501 condominium units, an increase of 1,531.5%, valued at 1.852 billion baht, and 4,801 housing estate units, a decrease of -12.2%, valued at 15.078 billion baht.
  • Top-selling condominium location: Bang Pakong area, with 124 units sold and an absorption rate of 2.7% per month. However, this area is also a condominium location requiring caution due to high unsold units, with 1,383 unsold units expected to take 34 months to sell all.
  • Top-selling housing estate locations:
  1. In-town Chachoengsao area, with 275 units sold and an absorption rate of 5.4% per month.
  2. Bang Pakong area, with 274 units sold and an absorption rate of 4.9% per month.
  3. Ban Pho area, with 158 units sold and an absorption rate of 6.2% per month.
  4. Phanom Sarakham area, with 124 units sold and an absorption rate of 10.9% per month.
  • Housing estate locations requiring caution due to high unsold units:
  1. Bang Pakong area, with 1,588 unsold units, expected to take 17 months to sell all.
  2. In-town Chachoengsao area, with 1,438 unsold units, expected to take 16 months to sell all.
  3. Ban Pho area, with 692 unsold units, expected to take 13 months to sell all.
  4. Plang Yao area, with 664 unsold units, expected to take 20 months to sell all.

Dr. Vichai Wiratthakhan further commented on property development in Chachoengsao province, stating, “The housing market in Chachoengsao province is also primarily focused on housing estates, with approximately 90% of sales being housing estates, and there have been virtually no new condominium project launches. In Q3 2023, REIC found a significant increase in the launch of single houses and twin houses compared to the previous quarter, especially twin houses, and there has been an improvement in housing estate sales. Condominiums may receive some interest in areas close to job centers or commercial districts, but they still require time.”

REIC noted that the expansion of housing estates in Chachoengsao is likely linked to the residential expansion from the Bangkok metropolitan area due to relatively affordable housing prices and the connection to industrial investment in the EEC area, as the best-selling zones are near Chachoengsao city, Bang Pakong, and Ban Pho.

Dr. Vichai Wiratthakhan concluded, stating, “For 2024, REIC predicts that the overall situation in the three provinces of the EEC will remain stable, with approximately 16,073 new residential units entering the market, valued at 47.806 billion baht, consisting of 8,112 housing estate units valued at 29.359 billion baht and 7,961 condominium units valued at 18.447 billion baht. It is expected that approximately 26,133 residential units will be sold, valued at 83.961 billion baht, consisting of 16,476 housing estate units valued at 51.089 billion baht and 9,657 condominium units valued at 32.872 billion baht. The overall sales rate is expected to increase by 12.5%, resulting in approximately 28,124 unsold residential units remaining in the three provinces of the EEC, valued at 94.316 billion baht, consisting of 13,822 housing estate units valued at 42.272 billion baht and 14,302 condominium units valued at 52.044 billion baht. If REIC's predictions hold true, the overall market situation is adjusting towards improvement, as the remaining inventory in the market has decreased by -26.3%, marking the largest decline in three years.”