The Real Estate Information Center of the Government Housing Bank (REIC) reports on the overall housing market situation in the Northeastern provinces during the second half of 2023, covering five provinces: Nakhon Ratchasima, Khon Kaen, Udon Thani, Ubon Ratchathani, and Maha Sarakham. It was found that the number of unsold units in the second half of 2023 increased by 7.1% compared to the same period in 2022, while the overall absorption rate of the market slightly decreased to 2.7%. REIC forecasts that in 2024, there will be 4,860 new housing units entering the market worth 20.402 billion baht, with 5,094 new sales units valued at 19.262 billion baht, and 11,419 unsold units worth 41.932 billion baht. The overall housing market in the surveyed area is entering a recovery phase, with a projected 24.1% increase in new sales units and a slight increase in the absorption rate, particularly in the condominium project segment.

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 Northeastern provinces for the second half of 2023 found that the supply ready for sale amounted to approximately 13,866 units worth 51.714 billion baht. This includes 2,782 condominium units valued at 8.856 billion baht and 11,084 housing development units worth 42.858 billion baht. There were 1,794 new projects entering the market valued at 9.858 billion baht, with 2,213 new sales units worth 8.104 billion baht, resulting in 11,653 unsold units valued at 43.611 billion baht.

“When comparing the housing market of these five provinces, Nakhon Ratchasima and Khon Kaen are the largest markets in all aspects. This is evident from the number and proportion of all types of housing offered for sale, totaling 6,157 units (44.4%) valued at 26.340 billion baht (50.9%) and 4,694 units (33.9%) valued at 14.872 billion baht (28.8%) respectively. However, Khon Kaen has launched the most new projects, with 736 units (41.0%) valued at 2.195 billion baht (22.3%), including 193 housing development units (17.7%) worth 1.154 billion baht (24.0%) and 543 condominium units (77.2%) worth 1.040 billion baht (20.6%), reflecting the percentage of units and value by type in the Northeastern region.

Khon Kaen also recorded the highest number of new sales units at 959 units (43.3%) valued at 2.469 billion baht (30.5%), with an absorption rate of 3.4% per month. Nakhon Ratchasima followed with 841 units (38.0%) valued at 4.163 billion baht (51.4%) and an absorption rate of 2.3% per month. Ubon Ratchathani has the highest absorption rate for housing developments at 2.6%, while Khon Kaen has the highest absorption rate for condominiums at 5.1%.”

Overall Supply in the second half of 2023 shows a total of 13,866 housing units offered for sale valued at 51.714 billion baht, an increase of 5.1% in units and 14.5% in value compared to the same period last year (YoY). There were only 1,794 new projects entering the market, a decrease of 24.7%, but with a value of 9.858 billion baht, an increase of 14.5% YoY. The number of unsold housing units in the second half of 2023 was 11,653 units valued at 43.611 billion baht, with a unit increase of 7.1% and a value increase of 18.4% YoY.

The five locations with the highest number of unsold units in the five Northeastern provinces are: 1) Joho area with 1,406 units valued at 4.490 billion baht, 2) downtown Nakhon Ratchasima with 1,034 units valued at 4.451 billion baht, 3) Khon Kaen University area with 1,023 units valued at 1.934 billion baht, 4) Ban Mai-Khok Krad area with 980 units valued at 2.888 billion baht, and 5) Ban Pet area with 835 units valued at 4.097 billion baht. The price range with the most unsold units is 2.01-3.00 million baht, totaling 3,591 units valued at 9.413 billion baht.

Overall Demand indicates that in the second half of 2023, there were 2,213 new sales units valued at 8.104 billion baht, divided into 1,553 housing development units valued at 5.917 billion baht and only 660 condominium units valued at 2.187 billion baht. The top five locations with the highest sales units are: 1) Khon Kaen University area with 525 units valued at 860.3 million baht, 2) Joho area with 208 units valued at 706 million baht, 3) Hua Ta-le area with 160 units valued at 421.5 million baht, 4) Ban Pet area with 140 units valued at 643.4 million baht, and 5) Lam Takong Industrial Estate with 136 units valued at 781.4 million baht.

Overview of Nakhon Ratchasima

For the second half of 2023, in the surveyed area of Nakhon Ratchasima, there were a total of 6,157 housing units offered for sale valued at 26.340 billion baht, an increase of 3.5% and 14.6% respectively. This includes 5,250 housing development units valued at 20.670 billion baht and 907 condominium units valued at 5.670 billion baht. In the second half of 2023, there were 722 new housing units entering the market, an increase of 24.1% valued at 6.709 billion baht, an increase of 109.4%. The number of new sales units was 841, a decrease of 11.2% valued at 4.163 billion baht, an increase of 0.6%, and the number of unsold units was 5,316, an increase of 6.3% valued at 22.177 billion baht, an increase of 17.7% YoY. REIC forecasts that in 2024, there will be 1,814 new housing units entering the market valued at 10.527 billion baht, with 2,151 new sales units valued at 9.922 billion baht and 4,979 unsold units valued at 20.495 billion baht.

Overview of Khon Kaen

For the second half of 2023, in the surveyed area of Khon Kaen, there were a total of 4,694 housing units offered for sale valued at 14.872 billion baht, an increase of 5.7% and 20.7% respectively. This includes 2,920 housing development units valued at 11.840 billion baht and 1,774 condominium units valued at 3.032 billion baht. In the second half of 2023, there were 736 new housing units entering the market, a decrease of 37.8% valued at 2.195 billion baht, a decrease of 23.3%. The number of new sales units was 959, an increase of 10.1% valued at 2.469 billion baht, a decrease of 0.1%, and the number of unsold units was 3,735, an increase of 4.7% valued at 12.403 billion baht, an increase of 25.9% YoY. REIC forecasts that in 2024, there will be 2,139 new housing units entering the market valued at 6.681 billion baht, with 1,862 new sales units valued at 5.569 billion baht and 4,011 unsold units valued at 12.958 billion baht.

Overview of Ubon Ratchathani

For the second half of 2023, in the surveyed area of Ubon Ratchathani, there were a total of 1,308 housing units offered for sale valued at 4.073 billion baht, an increase of 2.8% and 3.7% respectively. This includes 1,224 housing development units valued at 3.938 billion baht and 84 condominium units valued at 135 million baht. In the second half of 2023, there were 142 new housing units entering the market, a decrease of 41.8% valued at 486 million baht, a decrease of 15.1%. The number of new sales units was 201, a decrease of 11.5% valued at 684 million baht, an increase of 0.2%, and the number of unsold units was 1,107, an increase of 5.9% valued at 3.390 billion baht, an increase of 4.5% YoY. REIC forecasts that in 2024, there will be 439 new housing units entering the market valued at 1.363 billion baht, with 545 new sales units valued at 1.866 billion baht and 1,000 unsold units valued at 3.097 billion baht.

Overview of Udon Thani

For the second half of 2023, in the surveyed area of Udon Thani, there were a total of 1,128 housing units offered for sale valued at 4.672 billion baht, a decrease of 1.4% and an increase of 1.1% respectively. This includes 1,122 housing development units valued at 4.662 billion baht and 6 condominium units valued at 10.1 million baht. In the second half of 2023, there were 33 new housing units entering the market, a decrease of 91.0% valued at 96 million baht, a decrease of 95.1%. The number of new sales units was 147, a decrease of 29.0% valued at 590 million baht, a decrease of 28.8%, and the number of unsold units was 981, an increase of 4.7% valued at 4.083 billion baht, an increase of 7.6% YoY. REIC forecasts that in 2024, there will be 250 new housing units entering the market valued at 1.244 billion baht, with 313 new sales units valued at 1.211 billion baht and 918 unsold units valued at 3.822 billion baht.

Overview of Maha Sarakham

For the second half of 2023, in the surveyed area of Maha Sarakham, there were a total of 579 housing units offered for sale valued at 1.757 billion baht, an increase of 48.5% and 33.1% respectively. This includes 568 housing development units valued at 1.749 billion baht and 11 condominium units valued at 8.6 million baht. In the second half of 2023, there were 161 new housing units entering the market, an increase of 1,921.5% valued at 372 million baht, an increase of 2,351.7%. The number of new sales units was 65, an increase of 8.3% valued at 199 million baht, a decrease of 3.6%, and the number of unsold units was 514, an increase of 55.8% valued at 1.559 billion baht, an increase of 39.9% YoY. REIC forecasts that in 2024, there will be 219 new housing units entering the market valued at 586 million baht, with 222 new sales units valued at 694 million baht and 512 unsold units valued at 1.560 billion baht.

“The direction of the housing market in the five provinces of the Northeast indicates that Nakhon Ratchasima is likely to improve this year, with an expected increase in the absorption rate, leading to a reduction in unsold units. In Khon Kaen, sales are expected to continue improving, especially for condominiums, although the absorption rate may slightly decrease due to the introduction of new projects. Udon Thani's overall situation may not differ much from 2023, but the absorption rate is expected to decrease slightly, and the overall market remains stable, although unsold units may increase slightly due to the lower absorption rate. Ubon Ratchathani's market is expected to improve compared to 2023. In summary, the overall market in the Northeast continues to be affected by economic conditions to some extent, but importantly, sales will remain stable, with only Khon Kaen having large projects entering the area, leading to a more diverse demand for condominiums compared to other provinces, driven by both residential and investment purchases,” Dr. Wichai concluded.