The Real Estate Information Center (REIC) of the Government Housing Bank reports on the housing market situation still on sale during the first half of 2024 in five northeastern provinces: Nakhon Ratchasima, Khon Kaen, Udon Thani, Ubon Ratchathani, and Maha Sarakham. Dr. Wichai Wiratthakhan, the inspector of the Government Housing Bank and acting director of the Real Estate Information Center, revealed that the survey of housing projects in these five provinces during the first half of 2024 found approximately 13,520 units available for sale, valued at 50.116 billion baht. This includes 2,527 condominium units worth 7.757 billion baht and 10,993 housing units worth 42.360 billion baht.

REIC found that new sales reached 2,242 units, an increase of 18.5%, valued at 8.284 billion baht, up 20.8% compared to the same period last year. This includes 1,748 new sales of single-family homes worth 6.717 billion baht and 494 condominium units worth 1.566 billion baht. Nakhon Ratchasima had the highest sales of single-family homes at 767 units, valued at 2.952 billion baht, while Khon Kaen had the highest sales of condominiums at 238 units, valued at only 404 million baht. However, Nakhon Ratchasima had a new condominium sales value of up to 1.115 billion baht despite only selling 227 units, likely due to higher prices in the area, especially in the Khao Yai zone, which saw increased sales and relatively high prices. The overall absorption rate of the market stands at 2.8%, a slight increase from 2023.

Meanwhile, the number of new launches in the five northeastern provinces totaled 1,457 units, a decrease of 51.6%, valued at 5.335 billion baht, down 48.2%. This includes 1,024 new single-family homes worth 4.200 billion baht and 433 condominium units worth 1.135 billion baht. Nakhon Ratchasima and Khon Kaen had similar new launches, with 380 new single-family homes worth 1.554 billion baht and 216 condominium units worth 820 million baht in Nakhon Ratchasima, while Khon Kaen had 217 new condominium units worth 315 million baht. The other three provinces (Udon Thani, Ubon Ratchathani, and Maha Sarakham) did not have any new condominium launches.

As the overall sales in the five northeastern provinces improved compared to the previous year and developers remained cautious, the supply of new units entering the market decreased, resulting in 11,278 unsold units in the first half of 2024, a decrease of 12.2%, valued at 41.832 billion baht, down 5.0% compared to the same period in 2023. This includes 9,245 unsold single-family homes worth 35.642 billion baht and 2,033 unsold condominium units worth 6.190 billion baht. Nakhon Ratchasima had the highest number of unsold single-family homes at 4,310 units, valued at 16.997 billion baht, followed by Khon Kaen with 2,591 units worth 10.758 billion baht. Khon Kaen had the highest number of unsold condominium units at 1,205 units, valued at only 2.066 billion baht, while Nakhon Ratchasima had a value of unsold condominiums reaching 4.089 billion baht despite having only 806 unsold units, attributed to higher prices in Nakhon Ratchasima, particularly in the Khao Yai zone.

When comparing the housing market offers in these five provinces, Nakhon Ratchasima and Khon Kaen ranked first and second in market size, with Nakhon Ratchasima offering 6,110 units (45.2%) valued at 25.152 billion baht (50.2%), and Khon Kaen offering 4,478 units (33.1%) valued at 14.936 billion baht (29.8%) of the total units offered. However, Khon Kaen had the most new project launches, totaling 635 units (43.6%) valued at 2.233 billion baht (41.9%), including 418 single-family homes (40.8%) valued at 1.919 billion baht (45.7%) and 217 condominium units (50.1%) valued at 315 million baht (27.8%).

However, Nakhon Ratchasima had the highest number of new sales at 994 units (44.3%) valued at 4.066 billion baht (49.1%), with an overall absorption rate of 2.7% per month, while Khon Kaen had 682 units (30.4%) valued at 2.112 billion baht (25.5%) and an overall absorption rate of 2.5% per month. Udon Thani had the highest absorption rate for single-family homes at 3.4%, and Ubon Ratchathani had the highest absorption rate for condominiums at 9.5%.

REIC forecasts that in 2024, the five northeastern provinces will have 4,855 new housing units launched in the market, valued at 20.381 billion baht, with 4,976 new sales units valued at 18.100 billion baht and 11,532 unsold units valued at 42.755 billion baht. The overall housing market in the surveyed area is entering a recovery phase, with new sales expected to increase by 21.2% and a slight increase in the absorption rate, particularly in the condominium project segment.

Overview of Nakhon Ratchasima Province

For the first half of 2024 in the surveyed area of Nakhon Ratchasima, there were a total of 6,110 housing units offered for sale, valued at 25.152 billion baht, a decrease of 7.1% and an increase of 6.5%, respectively. This includes 5,077 single-family homes valued at 19.948 billion baht and 1,033 condominium units valued at 5.204 billion baht. During the first half of 2024, 596 new housing units entered the market, a decrease of 43.9%, valued at 2.374 billion baht, down 35.4%. The number of new sales units reached 994, an increase of 33.2%, valued at 4.066 billion baht, up 46.6%. The top five areas with the highest new sales in the first half of 2024 are:

1. Joho Zone: 244 units, valued at 797 million baht

2. Ban Mai-Khok Krad Zone: 195 units, valued at 626 million baht

3. Hua Ta-le Zone: 175 units, valued at 589 million baht

4. Khao Yai Zone: 158 units, valued at 1.074 billion baht

5. Downtown Nakhon Ratchasima: 103 units, valued at 400 million baht

Notably, the Joho Zone and Ban Mai-Khok Krad Zone had the highest new sales, ranking first and second, with an absorption rate of 2.8% per month.

For unsold housing units, there were 5,116 units, a decrease of 12.3%, valued at 21.086 billion baht, an increase of 1.2% compared to the same period in 2023 (YoY). The top five areas with the highest unsold housing units are:

1. Joho Zone: 1,228 units, valued at 3.808 billion baht

2. Downtown Nakhon Ratchasima: 976 units, valued at 4.143 billion baht

3. Ban Mai-Khok Krad Zone: 951 units, valued at 3.004 billion baht

4. Hua Ta-le Zone: 800 units, valued at 2.711 billion baht

5. Lam Takong Industrial Zone: 377 units, valued at 1.507 billion baht

REIC forecasts that in 2024, there will be 1,810 new housing units entering the market, valued at 10.509 billion baht, with 1,945 new sales units valued at 8.583 billion baht and 5,181 unsold units valued at 21.548 billion baht.

Overview of Khon Kaen Province

For the first half of 2024 in the surveyed area of Khon Kaen, there were a total of 4,478 housing units offered for sale, valued at 14.936 billion baht, a decrease of 10.2% and 6.9%, respectively. This includes 3,035 single-family homes valued at 12.466 billion baht and 1,443 condominium units valued at 2.470 billion baht. During the first half of 2024, 635 new housing units entered the market, a decrease of 54.0%, valued at 2.233 billion baht, down 49.3%. The number of new sales units reached 682, a decrease of 7.7%, valued at 2.112 billion baht, down 19.8%. The top five areas with the highest new sales in the first half of 2024 are:

1. Khon Kaen University Zone: 206 units, valued at 363 million baht

2. Ban Pet Zone: 129 units, valued at 685 million baht

3. Bueng Kan Nakorn Zone: 93 units, valued at 333 million baht

4. Khon Kaen Bypass-Kalasin Zone: 73 units, valued at 256 million baht

5. Lha Na Dee Zone: 72 units, valued at 171 million baht

Notably, the Khon Kaen University Zone and Ban Pet Zone had the highest new sales, ranking first and second, with absorption rates of 2.7% and 1.9% per month, respectively.

For unsold housing units, there were 3,796 units, a decrease of 10.7%, valued at 12.824 billion baht, down 4.3% compared to the same period in 2023 (YoY). The top five areas with the highest unsold housing units are:

1. Khon Kaen University Zone: 1,047 units, valued at 1.938 billion baht

2. Ban Pet Zone: 974 units, valued at 4.737 billion baht

3. Bueng Kan Nakorn Zone: 588 units, valued at 2.549 billion baht

4. Lha Na Dee Zone: 303 units, valued at 673 million baht

5. Khon Kaen Bypass-Kalasin Zone: 283 units, valued at 960 million baht

REIC forecasts that in 2024, there will be 2,140 new housing units entering the market, valued at 6.686 billion baht, with 1,969 new sales units valued at 5.781 billion baht and 3,906 unsold units valued at 12.736 billion baht.

Overview of Ubon Ratchathani Province

For the first half of 2024 in the surveyed area of Ubon Ratchathani, there were a total of 1,158 housing units offered for sale, valued at 3.567 billion baht, a decrease of 16.2% and 17.6%, respectively. This includes 1,107 single-family homes valued at 3.484 billion baht and 51 condominium units valued at 83 million baht. During the first half of 2024, 88 new housing units entered the market, a decrease of 70.1%, valued at 289 million baht, down 66.7%. The number of new sales units reached 217, an increase of 13.6%, valued at 705 million baht, up 6.5%. The top five areas with the highest new sales in the first half of 2024 are:

1. Kham Yai Zone: 58 units, valued at 174 million baht

2. Wanaram-Non Hong Thong Zone: 33 units, valued at 103 million baht

3. Warin Chamrap Zone: 32 units, valued at 93 million baht

4. Huai Wang Nong Zone: 26 units, valued at 89 million baht

5. Central Ubon Ratchathani: 25 units, valued at 155 million baht

Notably, the Kham Yai Zone and Wanaram-Non Hong Thong Zone had the highest new sales, ranking first and second, with absorption rates of 2.4% and 2.5% per month, respectively.

For unsold housing units, there were 941 units, a decrease of 21.0%, valued at 2.861 billion baht, down 22.0% compared to the same period in 2023 (YoY). The top five areas with the highest unsold housing units are:

1. Kham Yai Zone: 337 units, valued at 1.014 billion baht

2. Wanaram-Non Hong Thong Zone: 191 units, valued at 576 million baht

3. Warin Chamrap Zone: 144 units, valued at 409 million baht

4. Na Muang Zone: 140 units, valued at 317 million baht

5. Huai Wang Nong Zone: 73 units, valued at 248 million baht

REIC forecasts that in 2024, there will be 437 new housing units entering the market, valued at 1.360 billion baht, with 495 new sales units valued at 1.674 billion baht and 1,049 unsold units valued at 3.266 billion baht.

Overview of Udon Thani Province

For the first half of 2024 in the surveyed area of Udon Thani, there were a total of 1,159 housing units offered for sale, valued at 4.569 billion baht, a decrease of 11.1% and 14.6%, respectively. This includes 1,159 single-family homes valued at 4.569 billion baht, with no condominium projects. During the first half of 2024, 131 new housing units entered the market, a decrease of 39.1%, valued at 422 million baht, down 63.0%. The number of new sales units reached 233, an increase of 39.5%, valued at 998 million baht, up 58.0%. The top five areas with the highest new sales in the first half of 2024 are:

1. Nong Khai Exit Zone: 89 units, valued at 450 million baht

2. Airport-Prachasanthi Zone: 70 units, valued at 277 million baht

3. Nong Kham Zone: 23 units, valued at 81 million baht

4. Nong Bua Lam Phu Exit Zone: 22 units, valued at 66 million baht

5. Ban Chan Zone: 19 units, valued at 97 million baht

Notably, the Nong Khai Exit Zone and Airport-Prachasanthi Zone had the highest new sales, ranking first and second, with absorption rates of 3.2% and 3.9% per month, respectively.

For unsold housing units, there were 926 units, a decrease of 18.6%, valued at 3.571 billion baht, down 24.4% compared to the same period in 2023 (YoY). The top five areas with the highest unsold housing units are:

1. Nong Khai Exit Zone: 372 units, valued at 1.759 billion baht

2. Airport-Prachasanthi Zone: 229 units, valued at 800 million baht

3. Nong Bua Lam Phu Exit Zone: 158 units, valued at 461 million baht

4. Ban Lueam Zone: 77 units, valued at 217 million baht

5. Nong Kham Zone: 62 units, valued at 228 million baht

REIC forecasts that in 2024, there will be 249 new housing units entering the market, valued at 1.241 billion baht, with 372 new sales units valued at 1.448 billion baht and 858 unsold units valued at 3.569 billion baht.

Overview of Maha Sarakham Province

For the first half of 2024 in the surveyed area of Maha Sarakham, there were a total of 615 housing units offered for sale, valued at 1.892 billion baht, an increase of 28.4% and 21.2%, respectively. This includes 615 single-family homes valued at 1.892 billion baht and 11 condominium units valued at 9 million baht. During the first half of 2024, 7 new housing units entered the market, a decrease of 87.9%, valued at 16 million baht, down 92.3%. The number of new sales units reached 116, an increase of 136.7%, valued at 402 million baht, up 162.2%. The top five areas with the highest new sales in the first half of 2024 are:

1. Maha Sarakham City Zone: 83 units, valued at 321 million baht

2. Kantharawichai Zone: 33 units, valued at 81 million baht

Notably, the Maha Sarakham City Zone and Kantharawichai Zone had the highest new sales, ranking first and second, with absorption rates of 2.9% and 3.9% per month, respectively.

For unsold housing units, there were 499 units, an increase of 16.0%, valued at 1.491 billion baht, up 5.9% compared to the same period in 2023 (YoY). The top five areas with the highest unsold housing units are:

1. Maha Sarakham City Zone: 391 units, valued at 1.229 billion baht

2. Kantharawichai Zone: 108 units, valued at 262 million baht

Dr. Wichai concluded, "Overall, the housing market in the northeastern region during the first half of 2024 can be summarized as showing a clear recovery trend in the main cities. Nakhon Ratchasima and Khon Kaen are beginning to see recovery in both similar and different aspects. In Nakhon Ratchasima, urban areas are developing positively, especially single-family homes, which have seen improved sales, resulting in a better overall absorption rate. Meanwhile, the Khao Yai-Pak Chong area benefits from a clear recovery in the tourism business, leading to an increase in new project launches. In Khon Kaen, which has developed the most condominium projects in this group, the overall market continues to expand in terms of new sales and project launches, similar to single-family homes, which are also showing positive trends. However, caution is still needed when introducing new products into the townhouse segment."

In Udon Thani, Ubon Ratchathani, and Maha Sarakham, signs of recovery are beginning to emerge from stable sales and adjustments by developers to slow down the introduction of new products into the market. However, all three provinces still need to be cautious about launching new projects, as there are still a considerable number of completed housing units waiting for sale in the market.

Dr. Wichai recommended that "developers should take advantage of the final quarter of the measures to reduce transfer fees and mortgage registration fees by organizing promotions to stimulate sales of housing units priced below 7 million baht, which is the majority of products available in the northeastern housing market, to expedite the clearance of the existing stock of completed housing units that remain unsold."