New sales of residential units in the Eastern Economic Corridor (EEC) provinces, particularly in regions close to industrial estates, continued to experience a decline in the second quarter of 2024 due to factory closures.
Vichai Viratkapan, acting director-general of the Real Estate Information Center (REIC), noted that the shutdown of major factories in Chon Buri and Rayong since last year has had a significant impact on housing demand in those areas during the first half of the year.
“New sales of condominiums and townhouses near industrial zones have fallen consecutively for two quarters, from the first to the second quarter of this year,” he stated.
In the second quarter of 2024, the total new sales of residential units in Chon Buri, Rayong, and Chachoengsao amounted to 5,132 units, worth 16.8 billion baht, marking the lowest level since the REIC began its quarterly surveys in the first quarter of 2022.
This figure represented a decline from 6,563 units valued at 21.7 billion baht in the first quarter, which had already decreased from 7,872 units worth 25.8 billion in the fourth quarter of 2023, the highest quarterly total since early 2022.
By category and location, the inventory of low-rise housing in Rayong had the longest estimated time to sell out—29 months, assuming no new supply is introduced—due to the substantial amount of available stock.
This trend was particularly evident in the 2-3 million baht price range, especially in areas near industrial estates such as Nikhom Amata City-Eastern, Nikhom Hemaraj, and Nikhom Map Ta Phut.
The largest supply of low-rise housing was found in Nikhom Amata City-Eastern, with 1,426 units available. However, only 116 units were sold in the second quarter, resulting in a low absorption rate of 2.7% and an estimated 33.9 months to sell out.
Nikhom Hemaraj and Nikhom Map Ta Phut also saw total supplies of 1,093 and 1,065 low-rise housing units, but only 93 and 80 units were sold in the second quarter, respectively.
In Chon Buri, the largest supply of low-rise housing was also within the 2-3 million baht range, primarily in areas near industrial estates. This included Nikhom Pan Thong-Phanat Nikhom, with 1,147 units, and Nikhom Amata Nakorn-Bypass, with 1,119 units. However, only 129 and 84 units were sold in the second quarter, respectively.
The declining housing demand in the EEC during the first half of 2024 stands in contrast to year-on-year increases of 3.3% and 8.3% in the price index of vacant land, driven by an influx of Chinese investors entering the electric vehicle sector.
“The arrival of major brands like BYD and Changan in Rayong has not stimulated housing demand because they depend heavily on automation,” commented Premsorn Sriviboonchai, managing director of Rayong-based developer VP Real Estate Property Development.
