New residential units sold in Greater Bangkok in the fourth quarter of 2023 declined by 14.5% year-on-year, resulting in a 22.5% decrease for the full year, according to the Real Estate Information Center (REIC).
Vichai Viratkapan, the centre's acting director-general, said the residential market in Greater Bangkok in the fourth quarter of 2023 had a discrepancy between supply and demand.
Supply surged by 13% year-on-year to 31,363 units, valued at 240 billion baht, up 49%, whereas demand plummeted by 14.5% to 18,208 units worth 94.8 billion baht, down by 19%.
"This led to a 13.7% surge in the number of remaining unsold units, marking the highest year-on-year increase in four quarters, totalling 209,894 units worth around 1.17 trillion baht, an increase of 26.7% in value terms," he said.
Due to the rising supply and declining demand, the average absorption rate last year dropped to 2.7% from 3.8% in 2022.
Of the total new supply launched in the fourth quarter of 2023, 15,593 units worth 95.6 billion baht were condos, up 16.2% and 111%, respectively.
Low-rise houses tallied 15,770 units worth 144 billion baht, increasing 10% and 25%, respectively.
The majority of the new launches consisted of units priced at 3 million baht and below, comprising 6,588 units, followed by those priced between 3.01-5 million baht per unit, totalling 6,056 units.
The top locations with the largest number of units sold in the fourth quarter of 2023 were Bang Phli-Bang Bo-Bang Sao Thong in Samut Prakan with 2,315 units worth 13.8 billion baht.
Next came Bang Yai-Bang Bua Thong-Bang Kruai-Sai Noi in Nonthaburi with 1,711 units worth 8.7 billion baht and Muang-Phra Pradaeng-Phra Samut Chedi in Samut Prakan with 1,613 units worth 6.2 billion baht.
While Bang Yai-Bang Bua Thong-Bang Kruai-Sai Noi recorded the second-largest number of units sold, it also had the highest number of remaining unsold units, with 20,271 units worth 103.3 billion baht, primarily due to the significant number of new launches in that area.
Lam Luk Ka-Thanyaburi in Pathum Thani hosted the second largest number of unsold units with 18,303 units worth 85.3 billion baht, followed by Bang Phli-Bang Bo-Bang Sao Thong with 16,762 units worth 93.2 billion baht, and Khlong Luang in Pathum Thani with 16,558 units worth 61.4 billion baht.
"If the targeted economic growth is achieved, the market this year is expected to improve to the same level as 2022, which was the best year after the pandemic," Vichai said. "We anticipate demand will increase by 25% to 91,869 units worth 486 billion baht."