REIC has signed an MOU with 4 partners to establish cooperation in academic and research efforts towards sustainable real estate in Thailand. The Thai Real Estate Information Center aims to develop and connect real estate data, analysis, and research with various agencies to support its role as a recognized real estate information center both domestically and internationally. In 2023, the Thai Real Estate Information Center has thus formalized agreements for cooperation and support in research and academia with four external agencies:

  • Faculty of Architecture, Chulalongkorn University
  • Faculty of Architecture and Planning, Thammasat University
  • Big Data Institute (Public Organization)
  • Bania (Thailand) Co., Ltd.

The intent and scope of cooperation include the exchange of data and knowledge between agencies, collaboration on academic activities, development of systems or methodologies for data analysis, support for personnel development, and other areas within an appropriate timeframe.

Dr. Vichai Viratakphand, Inspector of the Government Housing Bank and Acting Director of the Real Estate Information Center, envisions the benefits expected from cooperation with the four diverse agencies, tailored to each agency's strengths, under a framework for knowledge development leading to academic projects beneficial to all stakeholders. This will foster the creation of academic projects in real estate development that can utilize this knowledge for analysis, investment, and precise business and marketing strategies.

The Real Estate Information Center will enhance research activities, increasing recognition of its academic and research roles among the public, thereby expanding its network of partners and data users. This will provide a broader range of data for analysis and research, enhancing knowledge, skills, expertise, and proficiency in big data management, data analytics, and data science, thus fulfilling its mission as assigned by the Cabinet.

Asst. Prof. Sarayut Sapsuk, Dean of the Faculty of Architecture, Chulalongkorn University, stated that this collaboration will focus on academic missions, particularly research related to housing and real estate development, utilizing the database of the Real Estate Information Center and expanding research to address societal issues in Thailand, such as affordable housing for low-income individuals, nursing homes, and financial planning for housing for the new generation.

Asst. Prof. Asal Suwanrit, Dean of the Faculty of Architecture and Planning, Thammasat University, mentioned that the collaboration will emphasize workshops for knowledge exchange in real estate data analysis across multiple dimensions, including social, economic, and technological aspects (Multi-dimensional Real Estate Analysis) and real estate trends. They will also jointly develop short courses that integrate in-depth academic knowledge with industry expertise to translate into practical outcomes that address future changes, such as Strategies and Strategic Management in Real Estate Business and low-carbon building training courses for loan applications, as well as developing standards for construction management.

Assoc. Prof. Dr. Theeranee Ajalakool, Director of the Big Data Institute (Public Organization), stated that under this collaboration, both agencies will organize activities for experience exchange and sharing of knowledge, consulting, and feedback on the development and design of data information systems (Data Platform), data management systems (Data Management), and data governance (Data Governance) to support the development towards Big Data, AI, and Machine Learning (Data Analytics). They will also provide training or workshops on Data Science, Data Analytics, and Business Intelligence for relevant personnel and jointly develop training courses on data analysis methods for use in businesses related to real estate for companies or real estate developers.

Ms. Anchana Wallipakorn, CEO of Bania (Thailand) Co., Ltd., discussed the collaboration between the two agencies as a multi-dimensional partnership, starting with linking demand and supply data in the real estate industry. This will facilitate the connection of data from activities such as construction permit applications, project launches, market offerings in both primary and secondary markets, property interest, and sales closure data. This is believed to be the first comprehensive data linkage in Thailand, which will enhance data services for businesses to plan clearer strategies, analyze real estate loan guarantees, assess NPL-NPA potential, and evaluate assets to create new technologies in the real estate industry, including potential area analysis models, housing sales marketing models, and intelligent property valuation to enhance the competitiveness of businesses. The completeness of data from this collaboration will lead to more comprehensive data services beneficial to all sectors.

Housing Market Situation Q3/2023 and Market Direction 2023 – 2024

Housing Market Situation Q3/2023
The Real Estate Information Center of the Government Housing Bank has announced key figures indicating the economic condition of the real estate market regarding the housing market in Q3 2023. It was found that in terms of demand, the number of units and the value of property transfers nationwide amounted to 94,946 units, a decrease of -7.0%, and 267,655 million baht, a decrease of -2.6% compared to the previous year. Meanwhile, the number of units and the value of newly sold properties in Bangkok and its vicinity was 18,392 units, a decrease of -9.1%, and 99,428 million baht, a decrease of -12.2%, respectively.

In terms of supply in Q3 2023, it was found that the number of units granted allocation permits for housing nationwide was 17,087 units, a decrease of -48.7% compared to the previous year, marking the first negative growth in seven quarters. This reflects that horizontal developers have begun to reduce supply in the market, and the area granted construction permits for housing nationwide is expected to continue decreasing from Q2 2023, with an estimated area of approximately 8.46 million square meters, down -16.5% in Q3 compared to the previous year. This aligns with the data on the number of newly launched housing units in Bangkok and its vicinity in Q3, which amounted to 20,369 units, a decrease of -14.8%, but with a value of 166,509 million baht, an increase of +13.8%. However, there was growth in both the number and value of newly launched housing units in the three EEC provinces, with a growth of 90.7% and 130.7%, respectively.

For the overall demand in the first nine months of 2023, the number of property transfer units decreased to 270,650 units, down -4.2%, but the value increased to 766,791 million baht, up 1.6%. It was found that the segment of houses priced below 3.0 million baht, which is the largest group of property transfers, saw a decrease in units ranging from -5.9% to -8.8%. In contrast, the segment of houses priced above 3.0 million baht showed significant growth, especially properties priced above 7.5 million baht, which saw substantial increases in both units and value. Additionally, preliminary results from field surveys indicated that the number and value of newly sold properties in Bangkok and its vicinity decreased by -24.7% and -21.0%, respectively, similar to the EEC, where the number and value of newly sold properties decreased by -16.0% and -11.7%, respectively.

The slowdown in demand has pressured the supply of housing to decrease. The overall supply in the first nine months of 2023 showed a decrease of -16.4% in the number of housing units granted allocation permits, and the area granted construction permits in the first eight months decreased by -1.9%. It was found that the decrease in supply was primarily in horizontal housing, aligning with the current trend of housing developers focusing on high-priced housing, as buyers in this segment still possess good purchasing power and can obtain loan approvals more easily than those seeking lower to mid-priced housing.

Dr. Vichai Viratakphand, Inspector of the Government Housing Bank and Acting Director of the Real Estate Information Center, commented that “The economic indicators of the real estate market in Q3 2023 reflect that the overall housing market across the country has seen a decrease in housing demand compared to the previous year, with declines in both the number of units and value. This is likely due to the reduced purchasing ability of potential buyers influenced by various negative factors, particularly among those seeking mid to low-priced housing. This has resulted in a clear reduction in the volume of housing supply in the market in 2023, focusing on the mid to high-priced housing market, as this group of buyers is more prepared to apply for loans, leading to a decrease in the volume of newly launched housing supply while the value has not decreased and has even increased. Additionally, it is noted that developers are beginning to view the housing market in Bangkok and its vicinity as having excess supply and high competition, thus looking to expand into regional areas, especially in major provinces and tourist destinations with strong economies.”

Market Direction 2023 – 2024
For the overall year 2023, a decrease in both demand and supply is expected compared to the previous year, as 2022 was a year of significant recovery in the housing market, creating a high base for 2023. Continuous monitoring of the situation over the past three quarters has shown that the transfer of ownership has performed better than initially anticipated due to strong sales from the previous year, leading to an estimated 2023 transfer of ownership of 377,832 units, down -3.8% from the previous year, with a value of 1.07 trillion baht, up 0.1% compared to the previous year.

Dr. Vichai summarized the direction for 2024, stating, “If the market can maintain this momentum, it will likely lead to a 4.0% and 4.6% growth in the number and value of ownership transfers in 2024, with an estimated 2024 transfer of ownership reaching 392,936 units and a value of 1.114 trillion baht, with single-family homes accounting for approximately 70% and condominiums 30%. Supply is expected to begin expanding again by about 2% - 4% to accommodate the growing demand in the housing market. However, attention must be paid to the remaining unsold housing supply in the market, which has accumulated significantly due to the rapid increase in supply in previous periods, while sales in 2023 have not performed well, leading to slow absorption of the supply.”

Situation of Foreign Ownership Transfers of Condominiums
Tracking the situation of foreign ownership transfers of condominiums in Q3 2023, it was found that there were 3,365 units transferred, valued at 17,048 million baht, accounting for 11.6% and 21.1% of total condominium transfers, respectively. There was a slight increase of 0.4% in the number of units, but a decrease of -2.0% in value.

In the overall first nine months of 2023, there were 10,703 units and a value of 52,259 million baht transferred, accounting for 13.6% and 23.3% of total condominium transfers, respectively, with increases of 37.6% and 31.6% in both units and value.

In the first nine months of 2023, the top five nationalities of property transfer recipients were:

  • 1st: Chinese nationality, purchasing the most units at 4,991 units, valued at 24,740 million baht, with an average unit size of 39.2 sq.m/unit and an average price of 5.0 million baht/unit.
  • 2nd: Russian nationality, with 962 units valued at 3,436 million baht, with an average unit size of 42.6 sq.m/unit and an average price of 3.6 million baht/unit.
  • 3rd: American nationality, with 422 units valued at 2,102 million baht, with an average unit size of 55.5 sq.m/unit and an average price of 5.0 million baht/unit.
  • 4th: Taiwanese nationality, with 378 units valued at 1,841 million baht, with an average unit size of 40.1 sq.m/unit and an average price of 4.9 million baht/unit.
  • 5th: British nationality, with 372 units valued at 1,813 million baht, with an average unit size of 56.7 sq.m/unit and an average price of 4.9 million baht/unit.

Additionally, it was found that the Myanmar nationality ranked 7th in terms of the number of units transferred, with 347 units, but had the 3rd highest value at 2,250 million baht, with an average unit size of 51.4 sq.m/unit and an average price of 6.5 million baht/unit.

The provinces with the highest foreign condominium purchases were Bangkok and its vicinity, Chonburi, Chiang Mai, Phuket, Prachuap Khiri Khan (Hua Hin), and Rayong. Dr. Vichai concluded that “Foreigners continue to show interest in purchasing real estate in Thailand, with condominiums remaining in demand. It can be seen that the number and value of ownership transfers in the past three quarters have surpassed pre-COVID-19 levels, with the proportion of condominium ownership transfers increasing to 11.6% and 21.1% of the total. Previously, the proportion of ownership transfers was below 10% and the value was below 15% of the total. Therefore, if tourism fully recovers, it is believed that the condominium market will attract even more interest from foreigners.”