Eastern developers ease supply
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Eastern developers ease supply

People explore deals for units at a recent property fair. Varuth Hirunyatheb
People explore deals for units at a recent property fair. Varuth Hirunyatheb

The ability of local developers to adapt improved absorption rates across most housing categories in three eastern provinces, as they slowed launches amid unfavourable conditions.

Vichai Viratkapan, acting director-general of the Real Estate Information Center (REIC), said the higher absorption rates in the fourth quarter of 2023 were attributed to reduced supply as a higher volume of units sold.

"The residential market in Chon Buri, Rayong and Chachoengsao is dominated by local developers," he said.

"They slowed new launches when the number of unsold units increased or the absorption rate dropped."

According to REIC, the average monthly absorption rate of condos in the three eastern provinces in the third quarter of 2023 dropped to 3.9% from 4.2% in the second quarter, but improved to 5% in the fourth quarter.

The total number of remaining unsold condos in the third quarter increased to 44,787 from 44,152 in the second quarter, before dropping to 41,240 units in the fourth quarter.

The decrease was attributed to fewer new condo launches, with 2,579 units in the fourth quarter, down from 4,322 units in the third quarter.

New sales totalled 3,007 units, up from 2,434 in the third quarter.

In Chon Buri, the best-selling condos in the fourth quarter last year were units priced 1.5-3 million baht.

For low-rise houses, units priced 2-5 million baht were the top sellers, a trend that has been consistently improving since 2022, noted REIC.

In terms of specific locations, Jomtien was the top-selling area for condos, with new sales increasing from the first quarter of 2023, largely driven by foreign buyers.

As for low-rise houses, Pan Thong near industrial estates emerged as the top location, followed by Bang Saen-Nong Mon, areas near the Amata City Industrial Estate, and Si Racha.

Even high-priced villas in Chon Buri registered a rise in new sales, increasing to 37 units worth a combined 1.1 billion baht in the fourth quarter of 2023, up from an average of 20 units per quarter in previous years, said Mr Vichai.

The low-rise housing market in Rayong mirrored the trend in Chon Buri, with the best-selling locations near industrial estates. Townhouses priced 1.5-2 million baht per unit were the top sellers in this category.

In Chachoengsao, the residential market primarily featured single detached houses and duplex houses.

Popular locations included areas between Muang district and Ban Pho and Plaeng Yao districts, as well as sites between Bang Pakong and Samut Prakan and Chon Buri.

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