The overall absorption rate of residential supply in three key eastern provinces in the first quarter this year soared to 4.7% from 2.6% at the end of 2021 due largely to strong demand for low-rise houses among those employed in the industrial sector.
Vichai Viratkapan, acting director-general of the Real Estate Information Center (REIC), said residential sales in locations near industrial estates improved significantly in line with a recovery of the industrial sector.
"The top three locations for low-rise houses sold in Chon Buri, Rayong and Chachoengsao in the first quarter of 2022 were all in industrial estate zones, namely Amata City-Eastern Seaboard, Hemaraj and the Amata City-Bypass, respectively," he said.
According to REIC, new residential supply sold in these three provinces in the first quarter totalled 7,789 units worth 22.9 billion baht.
Of this number, 78.5% were low-rise houses, which comprised single detached houses, townhouses and duplex houses, while condos accounted for the other 21.5%.
Driven by low-rise houses, the overall absorption rate of residential supply during this period increased to 4.7% from 2.6% in 2021 and 2.4% in 2020 as demand improved following the pandemic downturn.
In the first quarter this year, the number of new residential launches in the three provinces totalled 2,956 units worth 10 billion baht, which comprised 839 condo units worth 1.58 billion baht and 2,117 low-rise houses worth 8.5 billion.
The top three locations for new condo supply were Map Ta Phut Industrial Estate zone with 481 units worth 839 million baht, Bang Saen-Nong Mon-Bang Phra with 281 units worth 622 million, and Bang Pakong in Chachoengsao with 77 units worth 121 million.
"Condo developers slowed launches of new supply in Pattaya as demand in tourist destinations remained sluggish," said Mr Vichai.
"They shifted to industrial zones and near city zones instead."
REIC reported the residential supply remaining unsold in the three provinces totalled 56,103 units worth 191 billion baht.
The majority were condos, compris- ing 19,299 units worth 85.1 billion baht.
The top three locations with the most unsold condo units were Jomtien with 7,654 units, Pattaya-Khao Phra Tamnak with 5,495 units, and Laem Chabang with 1,901 units.
REIC said this suggests tourist locations continue to face an oversupply.
He forecast the total residential supply being launched in the three eastern provinces this year would rise by 52% to 20,270 units from 13,340 units last year.
New sales are projected to grow by 7.3% to 21,675 units from 20,192 units, said Mr Vichai.
"There are many risks that can affect the prediction, such as a new wave of the pandemic, high inflation and rising interest rates," he said.
