Residential sales in Rayong picked up significantly in the first half with a doubling in growth driven by low-rise houses, following an improvement in employment in the Eastern Economic Corridor (EEC).
Vichai Viratkapan, acting director-general of the Real Estate Information Center (REIC), said low-rise houses in Rayong had very good sales in the first half, particularly single detached houses and townhouses near industrial estates.
New sales in the period tallied 5,146 units worth 13.2 billion baht, up from 2,581 units worth 6.4 billion baht in the first half last year.
Of the unit number and value, 87% and 89% were low-rise houses.
Both the number and value of low-rise houses sold in the first half of 2022 -- 4,479 units worth 11.8 billion baht -- were the largest, even since before the pandemic.
Even though there were 1,171 units newly launched in the first half, the absorption rate remained good at 4.9% because the new supply was the lowest since 2018.
The number of unsold low-rise houses dropped to 12,975 units worth 16.8 billion baht in the first half of 2022 from 16,244 units worth 19.4 billion baht in the second half last year.
Peera Suwansrinon, deputy managing director of Life and Living Co, a residential developer based in Chon Buri and Rayong, said those working in industrial factories have now worked full time plus overtime shifts and bonuses.
"Their income and purchasing power has increased," he said. "The majority of the industries in the EEC are automotive, which is expected to have a production capacity of 1.75 million cars as targeted. The situation has now recovered close to normal."
With the resumption of the tourism sector, the economy in the EEC will gradually return to normal as many infrastructure projects and utilities are under development, said Mr Peera.
Nithi Nakages, founder of the Rayong Real Estate Association, said residential demand in Rayong remained driven by the industrial sector.
The market this year appears to be recovering as there were new industrial investors coming into the province.
In the first six months of 2022, the approved value for investment promotion in the EEC provinces totalled 105 billion baht.
More than half -- 59.1 billion baht -- was in Rayong, followed by Chon Buri (30.9 billion baht) and Chachoengsao (15.5 billion baht).
"A few days ago a Chinese electric car manufacturer bought a 600-rai plot in WHA Rayong 36 Industrial Estate in Nikhom Phatthana district. It aims to produce and export more than 100,000 EVs per year in the next few years," he said.
This district has been a rising star as C.P. Land and China's GuangXi Construction Engineering Group have jointly invested to develop the CPGC Industrial Estate in this district, he said.
"Many listed developers are seeking land plots in Nikhom Phatthana to develop residential projects, particularly low-rise houses," he said. "They also aim to develop apartments for rent and warehouses."
