The Real Estate Information Center of the Government Housing Bank (REIC) reports on the overall housing market situation in the northern provinces during the first half of 2023, covering five provinces: Chiang Mai, Chiang Rai, Phitsanulok, Nakhon Sawan, and Lamphun. It was found that the number of unsold units decreased by 9.1%, resulting in an overall absorption rate of 1.7%. REIC predicts that in 2023, there will be 2,481 new housing units entering the market, valued at 9.569 billion baht, with 3,243 new units sold, valued at 12.852 billion baht, and 14,687 unsold units valued at 58.152 billion baht.

Dr. Wichai Wiratthakhan, Inspector of the Government Housing Bank and Acting Director of the Real Estate Information Center revealed that the survey of housing projects in the five northern provinces during the first half of 2023 found that the supply ready for sale was approximately 16,985 units, valued at 67.516 billion baht. This includes 1,421 condominium units valued at 4.221 billion baht and 15,564 housing development units valued at 63.295 billion baht. There were 1,654 new projects entering the market, valued at 6.379 billion baht, and 1,707 new units sold, valued at 6.822 billion baht, resulting in 15,278 unsold units valued at 60.694 billion baht. It is noteworthy that despite operators adjusting their strategies for launching new projects, the purchasing power has not yet recovered, as evidenced by the continuous decline in the overall number of units offered for sale.

Overall Supply in the first half of 2023 shows a total of 16,985 housing units offered for sale, valued at 67.516 billion baht, a decrease of 14.3% in number and 11.7% in value compared to the same period last year (YoY). Only 1,654 new units entered the market, valued at 6.379 billion baht, down 47.8% and 52.4% respectively from the previous year. Meanwhile, the number of unsold housing units as of the first half of 2023 was 15,278 units, valued at 60.694 billion baht, with a decrease of 9.1% in number and 7.7% in value.

The five locations with the highest number of unsold units in the five northern provinces are: 1) Chiang Rai city area with 1,489 units valued at 6.509 billion baht, 2) San Sai with 1,376 units valued at 4.742 billion baht, 3) Bo Sang - Doi Saket with 1,304 units valued at 6.019 billion baht, 4) Saraphi with 1,296 units valued at 4.993 billion baht, and 5) Airport - Mae Fah Luang University with 1,233 units valued at 4.395 billion baht. The price range with the most unsold units is between 3.01-5.00 million baht, totaling 5,475 units valued at 22.831 billion baht.

Overall Demand shows that in the first half of 2023, there were 1,707 new housing units sold, valued at 6.822 billion baht, divided into 1,547 housing development units valued at 6.390 billion baht and only 160 condominium units valued at 432 million baht.

The top five locations with the highest number of sold units are: 1) Phitsanulok city area with 173 units valued at 595 million baht, 2) Dreamland with 151 units valued at 1.262 billion baht, 3) Saraphi with 134 units valued at 383 million baht, 4) San Sai with 122 units valued at 429 million baht, and 5) Airport - Mae Fah Luang University with 117 units valued at 494 million baht.

“When comparing the housing market in these five provinces, it is evident that Chiang Mai and Chiang Rai are the top two provinces in market size across all aspects. This can be seen from the number and proportion of all types of housing offered for sale, totaling 9,887 units (58.2%) valued at 41.525 billion baht (61.5%) and 3,132 units (18.4%) valued at 12.493 billion baht (18.5%) of the total units offered for sale, respectively. Chiang Mai has launched the most new projects, with 568 housing development units (34.3%) valued at 2.606 billion baht (40.9%) of the newly launched units, surpassing other provinces.

At the same time, Chiang Mai is the area with the highest number of new units sold at 808 units (47.3%) valued at 2.997 billion baht (43.9%), with an absorption rate of 1.4% per month, which is slightly lower than other provinces due to the high supply in the market. Following closely is Phitsanulok with 365 units (21.4%) valued at 1.201 billion baht (17.6%) and an absorption rate of 2.3% per month. Notably, Nakhon Sawan has the highest absorption rate for housing developments at 4.6%, while Chiang Mai has the highest absorption rate for condominiums at 2.0%.

Overview of Chiang Mai Province

In the first half of 2023, the surveyed area of Chiang Mai had a total of 9,887 housing units offered for sale, valued at 41.525 billion baht, a decrease of 23.3% and 21.3% respectively. This includes 8,569 housing development units valued at 37.442 billion baht and 1,318 condominium units valued at 4.083 billion baht. During the first half of 2023, there were 568 new housing units entering the market, a decrease of 78.4% valued at 2.606 billion baht, down 77.3%. The number of new units sold was 808, a decrease of 63.6% valued at 2.997 billion baht, down 63.7%, and the number of unsold units was 9,079, a decrease of 14.9% valued at 38.528 billion baht, down 13.4% compared to the same period in 2022 (YoY). REIC predicts that in 2023, there will be 852 housing units entering the market, valued at 3.909 billion baht, with 1,542 new units sold valued at 5.727 billion baht, and 8,629 unsold units valued at 36.716 billion baht.

Overview of Chiang Rai Province

In the first half of 2023, the surveyed area of Chiang Rai had a total of 3,132 housing units offered for sale, valued at 12.493 billion baht, an increase of 10.6% and 15.7% respectively. This includes 3,126 housing development units valued at 12.484 billion baht and 6 condominium units valued at 10 million baht. During the first half of 2023, there were 485 new housing units entering the market, an increase of 291.1% valued at 1.986 billion baht, an increase of 201.4%. The number of new units sold was 229, an increase of 73.5% valued at 957 million baht, an increase of 61.9%, and the number of unsold units was 2,903, an increase of 7.5% valued at 11.536 billion baht, an increase of 11.4% compared to the same period in 2022 (YoY). REIC predicts that in 2023, there will be 728 housing units entering the market, valued at 2.979 billion baht, with 450 new units sold valued at 1.879 billion baht, and 3,043 unsold units valued at 11.792 billion baht.

Overview of Phitsanulok Province

In the first half of 2023, the surveyed area of Phitsanulok had a total of 2,659 housing units offered for sale, valued at 8.659 billion baht, a decrease of 9.6% and 11.7% respectively. This includes 2,562 housing development units valued at 8.530 billion baht and 97 condominium units valued at 129 million baht. During the first half of 2023, there were 341 new housing units entering the market, an increase of 177.2% valued at 925 million baht, an increase of 46.7%. The number of new units sold was 365, an increase of 13.7% valued at 1.201 billion baht, an increase of 6.5%, and the number of unsold units was 2,294, a decrease of 12.4% valued at 7.458 billion baht, a decrease of 14.1% compared to the same period in 2022 (YoY). REIC predicts that in 2023, there will be 512 housing units entering the market, valued at 1.387 billion baht, with 696 new units sold valued at 2.289 billion baht, and 2,134 unsold units valued at 6.933 billion baht.

Overview of Nakhon Sawan Province

In the first half of 2023, the surveyed area of Nakhon Sawan had a total of 736 housing units offered for sale, all housing development units, valued at 3.348 billion baht, an increase of 20.5% and 81.7% respectively. During the first half of 2023, there were 18 new housing units entering the market, a decrease of 62.5% valued at 49 million baht, down 51.3%. The number of new units sold was 203, an increase of 89.7% valued at 1.405 billion baht, an increase of 406.6%, and the number of unsold units was 533, an increase of 5.8% valued at 1.943 billion baht, an increase of 24.1% compared to the same period in 2022 (YoY). REIC predicts that in 2023, there will be 27 housing units entering the market, valued at 74 million baht, with 351 new units sold valued at 2.429 billion baht, and 394 unsold units valued at 1.436 billion baht.

Overview of Lamphun Province

In the first half of 2023, the surveyed area of Lamphun had a total of 571 housing units offered for sale, all housing development units, valued at 1.491 billion baht, an increase of 4.2% and 30.2% respectively. During the first half of 2023, there were 242 new housing units entering the market, a decrease of 0.8% valued at 813 million baht, an increase of 53.6%. The number of new units sold was 102, a decrease of 53.6% valued at 261 million baht, a decrease of 43.5%, and the number of unsold units was 469, an increase of 43.0% valued at 1.230 billion baht, an increase of 80.0% compared to the same period in 2022 (YoY). REIC predicts that in 2023, there will be 363 housing units entering the market, valued at 1.219 billion baht, with 206 new units sold valued at 527 million baht, and 486 unsold units valued at 1.275 billion baht.