The Real Estate Information Center of the Government Housing Bank (REIC) reports on the overall housing market situation in the Northeast region, which includes the provinces of Nakhon Ratchasima, Khon Kaen, Udon Thani, Ubon Ratchathani, and Maha Sarakham. It was found that the housing market situation for properties available for sale in these five provinces during the first half of 2022 shows a decrease in the total supply of projects, although the value has increased compared to the first half of 2021 (YoY). In the first half of 2022, there was an increase in new supply in terms of both the number of projects and units, particularly in Ubon Ratchathani. Although this province has a smaller real estate market compared to Nakhon Ratchasima and Khon Kaen, it experienced the highest growth rate in terms of the number of units and the value of new projects launched.

Dr. Wichai Wiratthakhan, Inspector of the Government Housing Bank and Acting Director of the Real Estate Information Center revealed that a survey of housing projects for sale in the Northeast during the first half of 2022 found a total of 13,179 units valued at 46.812 billion baht. This includes 2,525 condominium units valued at 8.155 billion baht and 10,654 housing development units valued at 38.657 billion baht. There were 2,076 new units entering the market valued at 6.174 billion baht, and 2,674 units sold valued at 11.642 billion baht, resulting in 10,505 unsold units valued at 35.170 billion baht.

Supply of single-family and twin houses drives the market, while condominiums slow down.

The overall survey of the housing market in the five provinces of the Northeast during the first half of 2022 indicates that the sales situation in Khon Kaen and Nakhon Ratchasima has improved. Ubon Ratchathani and Maha Sarakham are beginning to recover, but there are concerns as completed projects waiting for sale in Ubon Ratchathani are taking longer to sell. Meanwhile, Udon Thani remains stable due to declining purchasing power amid inflation and rising interest rates. However, it is still important to focus on introducing new products to the market, especially twin house projects, which have entered the market in significant proportions. Despite receiving positive feedback, the sales rate for single-family homes remains higher.

In the first half of 2022, the total number of housing units offered for sale decreased compared to the first half of 2021, both in terms of the number of units and value. The number of units decreased by -3.7%, and the value decreased by -0.3% compared to the total number of units offered in the first half of 2021. However, the number of units offered increased with 2,076 new units entering the market valued at 6.174 billion baht.

The number of units increased by 31.1% compared to the first half of 2021, and the value increased by 27.0%. This includes only 220 condominium units valued at 197 million baht and 1,856 housing development units valued at 5.977 billion baht.

When considering the overall picture, it is found that new condominium projects launched in the first half of 2022 are limited to only one location, which is the Lam Takong Industrial Estate, while housing development projects are distributed across various locations such as Kam Yai, Jo Ho, and Ban Thum.

The five locations with the most projects for sale in the Northeast are: 1) Jo Ho with 1,978 units valued at 6.264 billion baht, 2) Ban Mai-Khok Krawat with 1,221 units valued at 3.905 billion baht, 3) Khon Kaen University area with 1,092 units valued at 2.291 billion baht, 4) Hua Ta-le with 936 units valued at 3.322 billion baht, and 5) downtown Nakhon Ratchasima with 854 units valued at 2.687 billion baht.

As for the situation of unsold units in the Northeast as of the first half of 2022, there are 10,505 units, a decrease of -9.0% from the first half of 2021, valued at 35.170 billion baht, a decrease of -13.1%. This includes 1,990 condominium units valued at 4.652 billion baht, with the top three locations having the most unsold condominium units being: 1) Khon Kaen University area with 847 units valued at 1.519 billion baht, 2) Ban Mai-Khok Krawat with 365 units valued at 584 million baht, and 3) Lam Takong Industrial Estate with 187 units valued at 167 million baht.

For housing development projects, there are a total of 8,515 unsold units valued at 30.518 billion baht, with the top three locations being: 1) Jo Ho with 1,546 units valued at 4.921 billion baht, 2) Hua Ta-le with 707 units valued at 2.609 billion baht, and 3) Ban Mai-Khok Krawat with 701 units valued at 2.574 billion baht. It can be observed that the majority of unsold units are single-family homes.

Demand for condominiums in urban and tourist areas is recovering.

In the first half of 2022, there were 2,674 new housing units sold valued at 11.642 billion baht, compared to the same period in 2021, with the number of units increasing by 25.1% and the value increasing by 80.2%. This includes only 535 condominium units valued at 3.503 billion baht, with the top three locations having the highest sales of new condominium units being: 1) Khao Yai with 201 units valued at 2.679 billion baht, 2) downtown Nakhon Ratchasima with 111 units valued at 223 million baht, and 3) Bueng Kan Nakhon with 52 units valued at 227 million baht.

Meanwhile, the sales of housing development projects reached 2,139 units valued at 8.139 billion baht, with the top three locations having the highest sales being: 1) Jo Ho with 432 units valued at 1.343 billion baht, 2) Hua Ta-le with 229 units valued at 713 million baht, and 3) Ban Ped with 161 units valued at 580 million baht.

From the survey, it was found that only 220 residential condominium units were launched in Nakhon Ratchasima, located in the Lam Takong Industrial Estate, while housing development projects were launched across all five provinces, indicating that horizontal housing development projects are recovering more than condominium projects.

However, when considering the absorption rates by type of housing, it was found that in the first half of 2022, the overall absorption rate across all types was 3.4%, with the best absorption rate being in the single-family home category at 3.8%, while the absorption rate for condominiums was at 3.5%.

The top five locations with the highest absorption rates for condominium projects are: 1) Bueng Kan Nakhon with an absorption rate of 14.7%, 2) Khao Yai with an absorption rate of 10.7%, 3) Central Ubon Ratchathani with an absorption rate of 9.1%, 4) downtown Nakhon Ratchasima with an absorption rate of 6.3%, and 5) Klang Dong with an absorption rate of 3.3%.

2022 Overview of the Northeast Region

For 2022, the Real Estate Information Center estimates the overall housing market in the Northeast, predicting that there will be 3,928 new projects launched, an increase of 60.3% compared to 2021, which had 2,450 units. The value of new launches is estimated at 11.557 billion baht, an increase of 49.0% compared to the previous year, which had a value of 7.757 billion baht. The number of new units sold is expected to reach 4,206 units, an increase of 5.9% compared to 2021, which had 3,973 units, with a new sales value of 13.560 billion baht, an increase of 4.8% compared to the previous year, which had a value of 12.945 billion baht.

It is also expected that there will be 14,962 unsold units, an increase of 43.3% compared to 2021, which had 10,439 units, with a value of unsold units at 50.788 billion baht, an increase of 40.7% from 36.095 billion baht. Meanwhile, the absorption rate for horizontal projects has decreased to 2.0%, and the absorption rate for condominiums is expected to decrease from 2.8% in 2021 to 2.3% in 2022.