LWS indicates that the Eastern Economic Corridor (EEC) has a high purchasing power for housing, both for residential use and investment, with an average return of 5 - 7%.

Mr. Prabhan Sak Raksaiwan, Managing Director of LWS Wisdom and Solutions Co., Ltd., a real estate research and development company under LP.N Development Public Company Limited, stated that the demand for housing in the EEC area continues to rise.

According to a survey by LWS conducted in January, there are 75 housing development projects in this area covering Chachoengsao, Chonburi, and Rayong, totaling 26,526 units. This includes 27 condominium projects with 15,160 units developed since 2017, with approximately 4,330 units remaining for sale, accounting for 28.56% of the total units available. Meanwhile, there are 48 single-family home projects with 11,366 units, of which about 4,834 units are still available, representing 42.5% of the total units for sale.

“The survey results show that the demand for condominiums in the EEC area is greater than for single-family homes. The price range that attracts interest for condominiums is up to 2 million baht, while the most sought-after single-family homes are townhouses priced up to 4 million baht,” said Prabhan Sak.

The areas with high demand for condominiums are located in the Amata City Industrial Estate in Chonburi, which has the highest workforce of about 220,000 people, with incomes ranging from 12,000 to 120,000 baht per month. In comparison, the Laem Chabang Industrial Estate has about 25,000 workers with incomes between 10,000 and 80,000 baht per month, and the Bang Pakong Industrial Estate has 30,000 workers with incomes ranging from 10,000 to 65,000 baht per month.

“The workforce in the Amata City Industrial Estate exceeds that of the Bang Pakong and Laem Chabang Industrial Estates, leading to higher housing demand in this area. The survey around Amata City found a total of 14 apartments with 1,900 rental units sized 25 - 28 square meters, showing an occupancy rate of 93%. The rental prices range from 2,500 to 5,000 baht per month, with 6 out of 14 apartments achieving a 100% occupancy rate, reflecting the high demand for housing in this area compared to others in the EEC,” Mr. Prabhan Sak stated.

This housing demand presents an opportunity for real estate developers to create housing projects in this area that meet the needs of buyers, especially condominium projects. The January survey found that completed condominium projects priced below 2 million baht (averaging 900,000 - 1,200,000 baht per unit, with sizes of 24 - 30 square meters) can achieve average sales of 70 - 90% of the units available, attracting buyers looking for personal residence and investment for rental purposes, with rental prices ranging from 5,500 to 8,000 baht per unit for sizes of 24 - 30 square meters, yielding an average return of 5 - 7% per year, which is higher than current deposit interest rates,” Mr. Prabhan Sak added.

According to a report from the Industrial Estate Authority of Thailand (IEAT), new sales and rentals in industrial estates totaled 6,069 rai, an increase of 52.7% YoY in the first nine months of 2023. The sales and rentals of land in industrial estates remain highest in the eastern region, covering 5,481 rai (90% of new sales and rentals nationwide), up 55.3% YoY, reflecting the eastern region's potential to attract investor interest compared to other regions. The central region (including Bangkok and its vicinity) follows with 531 rai (+47.5% YoY), resulting in total accumulated sales and rentals of 132,430 rai in the first nine months of 2023, with an overall occupancy rate of 80.0%, up from 75.7% at the end of 2022. This aligns with the increased land sales (rai) and revenue of two major industrial estate operators (AMATA and WHA Group), which rose by 34.6% YoY and 28.9% YoY, respectively.

Meanwhile, the value of investment promotion projects nationwide in 2023 is 1,138.5 billion baht, an increase of 34.5%, with applications in the EEC area rising by 36.6%, amounting to 504.9 billion baht (44% of the total value of approved investment promotion projects).

“The data on land purchases and investments in industrial estates in the eastern region, particularly in Amata City in 2023, will lead to increased purchasing power and housing demand for workers coming to work in the years 2025-2027, with an average increase of 5 - 10% per year. This presents an opportunity for real estate developers to develop housing projects in this area, as well as for investors to invest in residential properties for rental purposes to meet market demand, amidst a trend of stable low-interest rates, making real estate investment a viable option and opportunity for investors,” Mr. Prabhan Sak concluded.