Sales of residential units in the Eastern Economic Corridor (EEC) provinces, particularly near industrial estates, have sharply decreased in the second quarter of 2024 due to ongoing factory closures.
The acting director-general of the Real Estate Information Center (REIC) reported that the shutting down of major factories in Chon Buri and Rayong has had a profound effect on housing demand, impacting the first half of the year.
“New sales of condominiums and townhouses in industrial zone proximities have seen consecutive declines over the past two quarters,” he noted.
In the second quarter of 2024, total new residential unit sales in Chon Buri, Rayong, and Chachoengsao amounted to 5,132 units, valued at 16.8 billion baht. This marks the lowest sales level since the REIC initiated quarterly surveys in early 2022.
This is a decline from 6,563 units worth 21.7 billion baht in the first quarter, itself down from 7,872 units at 25.8 billion baht in the fourth quarter of 2023, which previously held the title for the highest quarterly sales since early 2022.
Low-rise housing inventory in Rayong is predicted to take the longest to sell out—29 months—due to the large amount of existing stock.
This trend is particularly evident in the 2-3 million baht price range, especially around industrial estates such as Nikhom Amata City-Eastern, Nikhom Hemaraj, and Nikhom Map Ta Phut.
Nikhom Amata City-Eastern has the highest supply of low-rise housing, with 1,426 units available, but only 116 units were sold in the second quarter, reflecting a low absorption rate of 2.7% and an estimated 33.9 months to sell out.
Nikhom Hemaraj and Nikhom Map Ta Phut had supplies of 1,093 and 1,065 low-rise units, with only 93 and 80 units sold in the same period, respectively.
The most substantial low-rise housing supply in Chon Buri also falls within the 2-3 million baht range, primarily near industrial estates, including 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 during the quarter, respectively.
This decline in housing demand within the EEC during the first half of 2024 starkly contrasts with year-on-year increases of 3.3% and 8.3% in the vacancy land price index, fueled by an influx of Chinese investors in the electric vehicle sector.
“The entry of major brands like BYD and Changan in Rayong has not stimulated housing demand, as their operations are heavily automated,” stated a local developer’s managing director.
