• In Q2/2024, overall new housing sales in the market decreased by -8.4% due to a decline in new sales of condominiums by -3.4% and a decrease in housing projects by -11.5%
  • This resulted in an increase in unsold housing units in the market by 12.6%
  • It is expected that government measures to stimulate new sales will increase by 3.8% for the entire year of 2024

The Real Estate Information Center (REIC) reported the results of a field survey on the supply and demand of residential projects currently for sale for Q2 2024 in the Bangkok and surrounding areas, focusing on projects with at least 6 unsold units. It was found that in Bangkok and 5 surrounding provinces, the overall housing market situation (both horizontal housing and condominiums) saw a significant decline in both demand and supply.

Dr. Vichai Viratakphan, Inspector of the Government Housing Bank and Acting Director of the Real Estate Information Center, revealed the survey results of the overall housing market situation for both horizontal housing and condominiums in Bangkok and 5 surrounding provinces in Q2 2024, indicating that the housing supply offered in the overall housing market (housing projects and condominiums) totaled 229,528 units valued at 1,350,586 million baht, representing a growth of 11.0% and 30.3% respectively, compared to the same period last year. This was partly due to the introduction of new housing projects into the market, totaling 17,197 units valued at 128,440 million baht, with the number of units decreasing by -23.9% and the value decreasing by -0.4% compared to the same period last year. The new condominium projects saw a continuous YoY decline for 2 consecutive quarters in both the number of units and value, with Q2 seeing the launch of new condominium projects totaling 7,967 units, down by -29.7%, primarily in the price range below 3.00 million baht, totaling 4,282 units. Meanwhile, new housing projects launched totaled 9,230 units, down by -18.0%, primarily in the price range of 3.01 - 7.50 million baht, totaling 4,969 units.

In terms of demand, new housing sales totaled 14,938 units, down by -8.4%, with a value of 84,327 million baht, down by -2.2%. This includes condominium projects totaling 6,029 units, down by -3.4%, with a value of 24,075 million baht, down by -7.5%. Most of the newly sold condominiums were in the price range below 3.00 million baht, totaling 4,590 units. The housing projects saw sales of 8,909 units, down by -11.5%, but with a value of 60,251 million baht, up by 0.1%, primarily in the price range of 3.01 - 7.50 million baht, totaling 4,313 units.

It is noteworthy that the overall number of new sales units has decreased in both quantity and value compared to the previous quarter, but when compared to the same period last year, the negative growth has decreased. This has resulted in a monthly absorption rate dropping to 2.2%, lower than the 2.3% absorption rate in Q1 2024.

The absorption rate for condominiums stands at 2.2%, while for housing projects it is at 2.1%, both lower than the 2.3% absorption rate in Q1.

Consequently, the unsold housing units continue to rise significantly for the fifth consecutive quarter, totaling 214,590 units, up by 12.6%, with a value of 1,266,259 million baht, an increase of 33.3%. This includes condominiums totaling 84,556 units, up by 14.5%, valued at 379,544 million baht, up by 27.6%, and housing projects totaling 130,034 units, up by 11.4%, valued at 886,715 million baht, up by 35.9%.

However, to provide a clearer picture of the changes in the housing market in the Bangkok and surrounding areas, the report is divided into the housing market for housing projects and condominiums.

Situation of the Housing Market for Housing Projects

The horizontal housing market in the Bangkok and surrounding areas in Q2 2024 saw a total of 138,943 units of housing projects offered for sale, an increase of 9.6%, valued at 946,967 million baht, up by 32.8% compared to the same period last year. The most offered housing type was townhouses, totaling 68,106 units, but down by -1.5%. Single houses totaled 44,399 units, up by 34.1%, and duplex houses totaled 24,437 units, up by 10.4%, while commercial buildings totaled only 2,001 units, down by -14.2% compared to the same period last year.

In terms of new housing projects launched in Q2 2024, there were 9,230 units, down by -18.0%, but with a value of 88,450 million baht, up by 7.0% compared to the same period last year. The most launched new housing projects were single houses, totaling 4,096 units, up by 25.6%, followed by townhouses with 3,549 units, down by -36.0%, and duplex houses with 1,540 units, down by -30.4%. Commercial buildings had only 45 units launched, down by -81.5% compared to the same period last year.

Regarding the new sales of housing projects in Q2 2024, there were a total of 8,909 units sold, down by -11.5%, with a value of 60,251 million baht, up by 0.1%. The top 5 locations with the highest new sales of housing projects include:

1. Bangplee-Bangbo-Bangsaothong Zone: 2,037 units, valued at 15,293 million baht.

2. Samut Prakan City-Phra Pradaeng-Phra Samut Chedi Zone: 1,267 units, valued at 5,361 million baht.

3. Bangyai-Bangbuathong-Bangkrui-Sainoi Zone: 1,070 units, valued at 5,979 million baht.

4. Lam Luk Ka-Thanyaburi Zone: 711 units, valued at 3,103 million baht.

5. Pathum Thani City-Lad Lum Kaew-Sam Khok Zone: 675 units, valued at 2,903 million baht.

The field survey also found that unsold housing projects in Q2 2024 totaled 130,034 units, up by 11.4%, with a value of 886,715 million baht, up by 35.9%. The top 5 locations for housing projects that require caution due to a high number of unsold units, even though some areas have good sales and absorption rates, include:

1. Bangyai-Bangbuathong-Bangkrui-Sainoi Zone: 20,686 units, valued at 114,376 million baht.

2. Lam Luk Ka-Thanyaburi Zone: 15,551 units, valued at 91,184 million baht.

3. Khlong Luang Zone: 14,457 units, valued at 57,650 million baht.

4. Bangplee-Bangbo-Bangsaothong Zone: 12,181 units, valued at 81,531 million baht.

5. Pathum Thani City-Lad Lum Kaew-Sam Khok Zone: 11,367 units, valued at 53,705 million baht.

Situation of the Condominium Market

The condominium market in the Bangkok and surrounding areas in Q2 2024 saw a total of 90,585 new condominium units offered for sale, an increase of 13.1%, valued at 403,619 million baht, up by 24.8% compared to the same period last year. However, new condominium sales in Q2 2024 totaled 6,029 units, down by -3.4%, with a value of 24,075 million baht, down by -7.5%.

In terms of new condominium projects launched in Q2 2024, there were 7,967 units, down by -29.7%, with a value of 39,991 million baht, down by -13.7% compared to the same period last year.

The new sales of condominiums totaled 6,029 units, down by -3.4%, with a value of 24,075 million baht, down by -7.5%. The top 5 locations with the highest new condominium sales include:

1. Huai Khwang-Jatujak-Dindaeng Zone: 1,441 units, valued at 6,211 million baht.

2. Nonthaburi City-Pakkret Zone: 572 units, valued at 1,551 million baht.

3. Khlong Luang Zone: 523 units, valued at 1,159 million baht.

4. Phra Khanong-Bang Na-Suan Luang-Pravet Zone: 477 units, valued at 1,270 million baht.

5. Thonburi-Klongsan-Bangkok Noi-Bangkok Yai-Bang Phlat Zone: 420 units, valued at 1,708 million baht.

The areas with the highest number of unsold condominium units total 84,556 units, up by 14.5%, with a value of 379,544 million baht, up by 27.6%, which should be monitored due to the high number of unsold units, even though some areas have good sales and absorption rates, including:

1. Huai Khwang-Jatujak-Dindaeng Zone: 9,846 units, valued at 39,988 million baht.

2. Thonburi-Klongsan-Bangkok Noi-Bangkok Yai-Bang Phlat Zone: 9,314 units, valued at 29,809 million baht.

3. Phra Khanong-Bang Na-Suan Luang-Pravet Zone: 8,280 units, valued at 27,391 million baht.

4. Nonthaburi City-Pakkret Zone: 6,580 units, valued at 17,887 million baht.

5. Lad Phrao-Wang Thonglang-Bang Kapi Zone: 5,197 units, valued at 16,965 million baht.

“The survey results indicate that in Q2 2024, the housing market in Bangkok and surrounding areas continues to experience a slowdown in sales compared to the previous quarter. The overall market shows growth in single houses and duplex houses priced above 10.00 million baht. Although the number of new sales units is not high, it generates higher sales value. However, the overall housing priced above 10.00 million baht continues to accumulate

excess supply, with unsold units increasing in both quantity and value by 78.1% and 82.1% respectively. Nonetheless, it is essential to monitor the remaining stock across all types and price levels, especially in areas where unsold housing units are decreasing slowly and absorption rates are declining, which are spread across various locations.”

“After Q2 2024, the Real Estate Information Center expects that the overall new housing units entering the market will total 85,195 units, with a total value of 528,396 million baht, a decrease of -11.4% in both quantity and value compared to 2023, divided into housing projects of 42,109 units valued at 357,108 million baht, and condominium projects of 43,086 units valued at 171,288 million baht. It is also projected that there will be new housing sales of 77,746 units, an increase of 3.8%, but with a value of 390,909 million baht, down by -0.05%, consisting of housing projects of 43,046 units valued at 264,284 million baht, and condominium projects of 34,701 units valued at 126,625 million baht. Overall, it is expected that there will be a total of 217,343 unsold housing units, valued at 1,237,835 million baht, consisting of housing projects of 125,310 units valued at 832,230 million baht, and condominium projects of 92,032 units valued at 405,605 million baht. The overall absorption rate is expected to remain poor, projected at 2.2%, the lowest since 2018 to date.”