A surge in exports last year propelled residential demand in Eastern Economic Corridor (EEC) provinces, with growth momentum expected to carry on this year, according to local property developers.
Meesak Chunharuckchot, president of the Chonburi Real Estate Association, said the residential market in the province improved in the second half of 2021, driven by exports reaching the highest level in several years.
"If the baht is weaker, the home purchasing power of those working in industrial exports will increase as shipment value rises," he said.
According to the Bank of Thailand, total export value excluding gold soared by 24.4% last year with a year-on-year growth of 26.6% and 22.4% in the first and second half, respectively.
Mr Meesak said townhouses priced at 1-2 million baht a unit targeting those in industrial estates were improving after a slowdown during 2019-20. The momentum is expected to continue this year.
Premsorn Sriviboonchai, president of the Rayong Real Estate Association, said the residential market in Rayong will be in the same direction as Chon Buri with positive momentum continuing from last year.
"Since the pandemic, industrial estates in Map Ta Phut have faced less impact as most of them are upstream industries like plastic pellets," he said. "Housing demand near Map Ta Phut is robust."
Industrial estates in Pluak Daeng were sluggish in 2020. However, automobile production picked up last year after global demand for cars resumed.
"Sales of both low-rise houses and condos in Rayong were better as purchasing power was boosted by overtime," Mr Premsorn said yesterday at a seminar on the residential market situation in EEC provinces.
Vichai Viratkapan, acting director-general of the Real Estate Information Center (REIC), said the quantity of unsold housing supply in Chon Buri, Rayong and Chachoengsao dropped in the second half last year due to a higher absorption rate.
In Chon Buri, residential units sold last year were mainly in locations near industrial estates, particularly townhouses priced at 1.5-3 million baht a unit.
REIC forecast the new residential supply being launched in the three provinces would pick up in 2022 with 40,000 units per half-year in Chon Buri, 3,000 units in Rayong and 2,000 units in Chachoengsao.
Watchara Pincharoen, president of the Chachoengsao Real Estate Association, said the EEC project helped drive housing demand in the province.
However, it has also driven land prices in quieter areas such as Chachoengsao to an extremely high level which the demand side might not be able to afford.
Mr Meesak, also president of the Thai Real Estate Association, said developers were concerned about construction costs affected by the ongoing Russia-Ukraine conflict.
Meanwhile, the new city plan for EEC area may benefit only the industrial but not residential sector while 354 new routes planned for the three provinces might obstruct housing development.
