<\/strong><\/span>The Real Estate Information Center of the Government Housing Bank (REIC)<\/strong><\/span> <\/strong><\/span>has released a report summarizing the supply and demand survey of residential projects currently for sale in the second half of 2021 in the Bangkok and surrounding areas, focusing on projects with at least 6 units available for sale. The report also assesses the market direction for 2022. Overall, it was found that in the second half of the past year, developers continued to delay launching new projects, resulting in a decrease in the number of residential units offered for sale in Bangkok and its vicinity, down by 6.5% compared to the same period in 2020, totaling 197,089 units valued at 952.329 billion baht, a decrease of 11.3%. Meanwhile, new sales also declined, with 32,138 units sold, down by 7.0%, representing a value of 153.729 billion baht, down by 6.8%. However, there are positive signs as the number of unsold units also decreased, totaling 164,951 units, down by 6.4%, with a total value of over 798.600 billion baht, down by 12.2%, resulting in a stable absorption rate compared to the same period in 2020, at 2.7%.<\/p>\r\n\r\n

          When assessing the overall situation, the Real Estate Information Center predicts that the overall residential market in Bangkok and its vicinity in 2022 will see a revival in investment for new projects, especially condominium projects, after a two-year slowdown. It is expected that the launch of new condominium projects will increase by 111.5%, or 44,519 units, with a value increase of 184.7%, totaling 177.246 billion baht. Additionally, the number of housing projects is expected to rise by 28.2%, or 39,089 units, with a value increase of 33.7%, totaling 209.511 billion baht. It is also anticipated that the number of new sales will increase, with new condominium sales expected to rise by 40.1%, or 41,756 units, valued at an increase of 34.0%, totaling 165.544 billion baht, and new housing project sales expected to rise by 10.4%, or 35,466 units, valued at an increase of 3.4%, totaling 180.845 billion baht.<\/strong><\/span><\/p>\r\n\r\n

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             Dr. Vichai Viratakphan, Bank Inspector and Acting Director of the Real Estate Information Center<\/strong><\/span> stated that field surveys conducted in the second half of 2021 revealed that over the past year, developers of residential projects slowed down investments in new projects, particularly condominium projects, to reduce the number of units waiting to be sold. As a result, in the second half of 2021, the number of new projects entering the market was 32,818 units, down by 9.9%, valued at 132.530 billion baht, a decrease of 32.7%. The number of new condominium projects decreased by 20.5%, totaling 14,219 units, valued at 36.779 billion baht, down by 54.8%. Meanwhile, the launch of new housing projects was in line with normal conditions, with 18,599 units, a slight increase of 0.4%, but the value decreased to 95.751 billion baht, down by 17.2%.<\/p>\r\n\r\n

As a result, the overall market in the second half of 2021 had a total of 197,089 residential units offered for sale, down by 6.5%, valued at 952.329 billion baht, down by 11.3%. The number of unsold units was 164,951, down by 6.4%, with a total value of unsold units at 798.600 billion baht, down by 12.2%. During the second half of 2021, the sales situation remained sluggish, with new sales of 32,138 units, down by 7.0%, valued at 153.729 billion baht, down by 6.8%, resulting in an absorption rate for the second half of 2021 remaining at 2.7%, similar to the second half of 2020.<\/p>\r\n\r\n

Top Selling Areas or Potential Sales Locations, Indicating the Highest Number of New Sales in the Top 5:<\/strong><\/span> <\/p>\r\n\r\n

1. Lam Luk Ka - Khlong Luang - Thanyaburi - Nong Sue
2. Bang Phli - Bang Bo - Bang Sao Thong
3. Samut Prakan City - Phra Pradaeng - Phra Samut Chedi
4. Bang Yai - Bang Bua Thong - Bang Krui - Sai Noi
5. Lak Si - Don Mueang - Sai Mai - Bang Khen<\/p>\r\n\r\n

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Market Direction for Residential Properties in 2022<\/strong><\/span><\/p>\r\n\r\n

         Dr. Vichai Viratakphan, Bank Inspector and Acting Director of the Real Estate Information Center<\/span><\/strong> further stated that to assess the direction of the residential market in 2022, eight key variables were evaluated, ranked by importance, including GDP growth rate, average MRR interest rate, impacts from policies and significant situations, general inflation rate, absorption rate for housing projects, absorption rate for condominiums in Bangkok and surrounding areas, and absorption rate for housing projects in the regions.<\/p>\r\n\r\n

            REIC predicts that in 2022, there will be 83,608 new projects launched in the Bangkok and surrounding areas, an increase of 62.2%<\/strong><\/span> with a value of 386.757 billion baht, an increase of 76.6%. Of these, new housing projects will account for 39,089 units, an increase of 28.2%, valued at 209.511 billion baht, an increase of 33.7%, while condominium projects will account for 44,519 units, an increase of 111.5%, valued at 177.246 billion baht, an increase of 184.7%.<\/p>\r\n\r\n

            It is also expected that there will be new residential sales in the Bangkok and surrounding areas totaling 77,222 units, an increase of 24.7%, valued at 346.389 billion baht, an increase of 16.1%. This includes new sales of housing projects totaling 35,466 units, an increase of 10.4%, valued at 180.845 billion baht, an increase of 3.4%, and new sales of condominium projects totaling 41,756 units, an increase of 40.1%, valued at 165.544 billion baht, an increase of 34.0%.<\/p>\r\n\r\n

            However, the number of unsold units remains a figure to watch closely, even though it has shown a continuous downward trend. REIC predicts that by the end of 2022, there will be 160,472 unsold units remaining in the market, down by 2.7%, valued at 762.810 billion baht, down by 4.5%. This includes 91,586 housing project units, down by 10.5%, valued at 478.035 billion baht, down by 8.8%, and 68,887 condominium units, up by 10.1%, valued at 284.775 billion baht, up by 3.7%.<\/p>\r\n\r\n

            Overall, this results in a residential sales absorption rate in the Bangkok and surrounding areas of 3.5%, with the absorption rate for housing projects at 2.8%, while the absorption rate for condominiums stands at 4.4%, which is an improvement compared to the second half of 2020-2021.<\/strong><\/span><\/p>\r\n\r\n

            “From the overall assessment of the residential market, it can move forward sustainably. Developers need to adjust their products to meet consumer demand and launch new projects that align with market needs. In 2022, there are still cautionary factors to consider; if there is a resurgence of COVID-19 that necessitates a lockdown, it will hinder the real estate market's recovery. Second-hand homes may serve as substitutes for new homes, so new home developers must exercise caution if there are second-hand homes in the same area. Additionally, there are still factors that need close monitoring, especially the rise in interest rates and fluctuations in oil prices, which affect inflation rates. Therefore, launching new projects must be supported by data to mitigate investment risks,” Dr. Vichai concluded.

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