The Real Estate Information Center of the Government Housing Bank has revealed the results of a survey on the overall housing market in 27 key provinces, indicating a significant slowdown in new supply, with the number of units decreasing by -32.0% and the value decreasing by -37.3%.

         Dr. Vichai Viratthakhan, Inspector of the Government Housing Bank and Acting Director of the Real Estate Information Center (REIC) stated that the Real Estate Information Center conducted a field survey on the housing market conditions in 27 important provinces. It was found that the new housing supply entering the market in the first half of 2021 totaled only 29,775 units, a decrease of -32.0%, with a value of 118,667 million baht, down -37.3% compared to the same period in 2020.

            The new supply in the condo segment has slowed down more than that of housing projects. The new condos in the 27 provinces totaled approximately 8,769 units, with a total value of 28,918 million baht, down -46.0% and -53.3%, respectively. Meanwhile, new housing projects had approximately 21,006 units with a total value of 89,749 million baht, down -23.9% and -29.6%, respectively, compared to the same period in 2020.

            This decline in new housing supply has affected the overall housing supply available for sale in the 27 provinces, which totaled 328,657 units with a total value of 1,446,276 million baht in the first half of 2021, representing a decrease of -5.7% in units and -6.4% in value compared to the same period last year.

            This indicates the adjustment strategy of housing developers, who are not adding many new products to the market but are focusing on selling existing inventory to create liquidity for management, in line with the ongoing COVID-19 pandemic, which has clearly slowed consumer purchasing power and the segment buying for second homes or investment.

 

 

The absorption rate of 'houses and condos' in the first half of 2021 remains below the lowest base in 2020.

        In terms of overall new housing sales, it was found that in the first half of 2021, approximately 45,895 new housing units were sold, with a value of 195,803 million baht, representing a decrease of -14.3% and -14.7%, respectively. This includes new housing projects sold at 27,489 units with a value of 124,219 million baht, down -22.6% and -20.7%, respectively.

            Meanwhile, new condo sales totaled 18,406 units with a value of 71,583 million baht, with the number of units increasing by 1.8%, while the value decreased by -1.8% compared to the same period in 2020. The slight increase in new condo units sold is due to the very low base in 2020, and it is still noted that the overall absorption rate has decreased below the same period in 2020, which was already at a low level.

            Although new sales have decreased, the result of the lower new supply in the market has led to a reduction in the number of unsold units. As of the first half of 2021, there were 282,762 unsold housing units, valued at 1,250,473 million baht, down -4.1% and -4.9%, respectively. This can be seen as a reduction in the pressure of unsold units in the market, reflecting a continuous adjustment of supply and demand balance, which is the ongoing role of the Real Estate Information Center in signaling the market.

 

 

            “To provide clarity on survey data in each region for all stakeholders involved in the housing business development,

            the Information Center has organized a seminar titled “Housing Market Situation in the Second Half of 2021 and Trends for 2022 Amidst the COVID-19 Crisis”  where the center will present detailed data for each area to provide a true picture of the market, including areas with good sales, areas with high inventory, and absorption rates categorized by housing type and price level, compared to previous periods and the same time last year.

            Additionally, Big Data with over 10 years of Time Series will be analyzed and forecasted for the overall market in the second half of 2021 and trends for 2022 in each region, along with a platform for exchanging marketing perspectives with industry experts.

           The seminar “Housing Market Situation in the Second Half of 2021 and Trends for 2022 Amidst the COVID-19 Crisis”  is scheduled to be held on September 15 for the Bangkok Metropolitan Area and Central Region, September 17 for the Northern Region and EEC, and September 21 for the Northeastern, Southern, and Western Regions of 2021.

            In the format of an Online Seminar to disseminate information widely and provide data for all sectors, both public and private, to use in adjusting plans and strategies to create sustainability in the real estate sector moving forward.