Real Estate Information Center, Government Housing Bank (REIC) reports on the overall housing market situation in the Eastern Economic Corridor (EEC) area, which includes Chonburi, Rayong, and Chachoengsao provinces. These areas are significant for the country's economy and investment. Therefore, REIC conducts quarterly field surveys of the supply and demand for residential projects currently for sale. It was found that after the COVID-19 pandemic, the housing market in the EEC area continued to shrink until the fourth quarter of 2021, but signs of recovery began to appear in the first quarter of 2022.

Dr. Vichai Viratakphan, Inspector of the Government Housing Bank and Acting Director of the Real Estate Information Center revealed that the survey of residential projects for sale in the three provinces during the first quarter of 2022 found a total of 63,892 units valued at 214.156 billion baht. This includes 20,979 condominium units and 42,913 housing projects. There were 2,956 new projects entering the market valued at 10.077 billion baht, and 7,789 units sold valued at 22.945 billion baht, resulting in 56,103 unsold units valued at 191.220 billion baht.

In terms of supply, it was found that in the first quarter of 2022, the total number of residential units for sale decreased from the second half of 2021, with both the number of units and value declining. This was due to only 2,956 new projects entering the market in the first quarter of 2022, valued at 10.077 billion baht, which included only 839 condominium units valued at 1.581 billion baht and 2,117 housing projects valued at 8.496 billion baht.

Upon closer examination, it is evident that the condominium projects currently for sale are concentrated in Chonburi province, mostly from earlier openings, as developers have significantly reduced the number of new project launches. Most new openings are in industrial estate areas and near urban zones. The top three new condominium projects launched in the first quarter of 2022 are in the Map Ta Phut industrial estate area with 481 units valued at 839 million baht, followed by Bang Saen-Nong Mon-Bang Phra with 281 units valued at 622 million baht, and Bang Pakong with 77 units valued at 121 million baht. The new projects launched in the first quarter of 2022 are clustered in the price range of 1.51-3.00 million baht.

Meanwhile, the housing projects have new launches spread across four main locations, with the Sriracha-Assumption area having the highest number of new projects at 602 units valued at 3.030 billion baht, followed by Amata Nakorn industrial estate-Bypass with 524 units valued at 2.135 billion baht, and Huay Yai with 402 units valued at 1.217 billion baht. The Bang Saen-Nong Mon-Bang Phra area has 348 units valued at 1.456 billion baht.

The situation of unsold units in the EEC area stands at 56,103 units valued at 191.220 billion baht, with 19,299 condominium units valued at 85.088 billion baht. The top three locations with the highest number of unsold condominiums are Jomtien with 7,654 units, Pattaya-Khao Phra Tamnak with 5,495 units, and Laem Chabang with 1,901 units, indicating that tourist area condominiums still face an oversupply situation. For housing projects, there are 36,804 unsold units valued at 106.132 billion baht, with Amata City-Eastern industrial estate having 6,419 units, Panthong-Panatsnikom industrial estate with 3,089 units, and Hemaraj industrial estate with 3,066 units, showing that most unsold units are townhouses.

In terms of demand, it was found that during this period, 7,789 new residential units were sold valued at 22.945 billion baht, divided into only 1,680 condominium units valued at 5.471 billion baht. The top three locations with the highest number of new condominium sales are Jomtien Beach with 315 units valued at 1.487 billion baht, Bang Saen-Nong Mon-Bang Phra with 302 units valued at 723 million baht, and Pattaya-Khao Phra Tamnak with 287 units valued at 1.550 billion baht. This reflects that condominiums in tourist areas continue to absorb demand, albeit not significantly. Meanwhile, new sales of housing projects totaled 6,109 units valued at 17.474 billion baht, with the top three locations for successful housing sales being Amata City-Eastern industrial estate with 921 units valued at 1.814 billion baht, Hemaraj industrial estate with 607 units valued at 1.540 billion baht, and Amata-Bypass industrial estate with 453 units valued at 1.281 billion baht, reflecting the recovery of the industrial estate areas benefiting from the industrial rebound.

 

The EEC housing market shows signs of recovery in demand for housing projects.

Surveys indicate that in Chonburi province, there are almost no new condominium projects for sale, and there are relatively few housing projects, demonstrating that horizontal residential development projects are recovering more than condominium projects, especially twin houses, which have seen new sales increase significantly, contributing positively to the overall market.

However, when considering the absorption rates by type of residence, it was found that in the first quarter of 2022, the overall absorption rate across all types was 4.1%, with the best absorption rate in the price range of 1.01-1.50 million baht. The absorption rate for housing projects was 4.7%, while the absorption rate for condominiums was 2.7%. Townhouses had the highest absorption rate at 5.1.

The top three locations with the highest absorption rates for condominium projects are Bang Saen-Nong Mon-Bang Phra at 10.0%, Bang Pakong at 10.0%, and Map Ta Phut industrial estate at 7.8%. The top three locations for housing projects with the highest absorption rates are Bang Saen-Nong Mon-Bang Phra at 7.1%, Nong Prue-Mab Prachan at 6.5%, and Laem Chabang at 6.3%.

Chonburi province sees a continuous slowdown in condominiums, while townhouses and twin houses are key factors driving market recovery.

Overall, in Chonburi province during the first quarter of 2022, there were 39,655 residential units announced for sale, valued at 149.712 billion baht, with 2,229 new projects valued at 8.584 billion baht. The number of new sales was 4,477 units valued at 14.359 billion baht, indicating that previously announced projects have absorbed quite a bit, but there are still 35,178 units waiting to be sold, valued at 135.353 billion baht, which is still quite high for both housing projects and condominiums. The overall absorption rate has moved to 3.8%, with housing projects having an absorption rate of 5.2% and condominiums at 2.2%. The best absorption rates are in the price range of 1.01-1.50 million baht, with an absorption rate of 5.4.

Rayong province sees strong sales of condominiums with an absorption rate of 6.7%, while housing projects have a surplus.

In Rayong province during the first quarter of 2022, there were 18,131 residential units announced for sale, valued at 46.538 billion baht, with 612 new projects valued at 1.236 billion baht. The number of new sales was 2,569 units valued at 6.552 billion baht, with 15,534 units waiting to be sold, valued at 39.986 billion baht, mostly from housing projects. The overall absorption rate has moved to 4.8%, with housing projects at 4.6% and condominiums at 6.7%. The best absorption rates are in the price range below 1.01 million baht, with an absorption rate of 6.3.

Chachoengsao province sees strong sales of residences priced between 7.51-10 million baht with an absorption rate of 6.1.

In Chachoengsao province during the first quarter of 2022, there were 6,106 residential units announced for sale, valued at 17.915 billion baht, with only 115 new projects valued at 256 million baht. The number of new sales was 715 units valued at 2.035 billion baht, with 5,391 units waiting to be sold, valued at 15.881 billion baht. The overall absorption rate has moved to 3.9%, with housing projects at 3.8% and condominiums at 7.3%. The best absorption rates are in the price range of 7.51-10 million baht, with an absorption rate of 6.1.

In 2022, the overall EEC area sees a 51.9% increase in new launches, with new sales expected to rise by 7.3%.

For 2022, the Real Estate Information Center forecasts the overall housing market in the three EEC provinces to see 20,270 new projects launched, an increase of 51.9% compared to 2021, which had 13,340 units. The number of new sales is expected to be 21,675 units, an increase of 7.3% compared to 2021, which had 20,192 units. There will be 61,719 unsold units, an increase of 2% compared to 2021, which had 60,480 units. The absorption rate for horizontal projects remains stable at 2.5%, while the absorption rate for condominiums is expected to increase from 1.9% in 2021 to 2.4% in 2022.

When considering by area, the Real Estate Information Center predicts that in 2022, Chonburi will have 12,513 new residential units entering the market, an increase of 99.9%, valued at 44.376 billion baht, which is an increase of 181.2% compared to 2021. The number of new sales is expected to be 13,916 units valued at 46.494 billion baht, an increase of 14.8% in units and 18.4% in value compared to 2021. The number of unsold units is expected to be 40,901 units valued at 142.436 billion baht, an increase of 11.0% in units and 1.5% in value compared to 2021.

Rayong is expected to have 6,097 new residential units entering the market, valued at 14.679 billion baht, a decrease of -13.3% in units and -8.9% in value compared to 2021. The number of new sales is expected to be 5,841 units valued at 13.989 billion baht, a decrease of -7.0% in units and -13.3% in value compared to 2021. The number of unsold units is expected to be 15,379 units valued at 37.284 billion baht, a decrease of -12.6% in units and -18.4% in value compared to 2021.

Chachoengsao is expected to have 1,659 new residential units entering the market, valued at 4.292 billion baht, a decrease of -2.5% in units and -11.6% in value compared to 2021. The number of new sales is expected to be 1,918 units valued at 5.294 billion baht, an increase of 7.2% in units and 2.5% in value compared to 2021. The number of unsold units is expected to be 5,449 units valued at 15.297 billion baht, a decrease of -9.6% in units and -14.4% in value compared to 2021.

However, there are still risk factors that may impact the above forecasts, including the potential resurgence of COVID-19 after the country reopens, rising inflation due to increasing oil prices, and possible interest rate hikes of 0.50-1.00%, which could negatively affect the housing market.