Residential sales in EEC areas dip as factories shutter

New sales of residential units in the Eastern Economic Corridor (EEC) provinces, particularly in areas near industrial estates, continued to decline in the second quarter of 2024 because of factory closures.
Vichai Viratkapan, acting director-general of the Real Estate Information Center (REIC), said the closure of large factories in Chon Buri and Rayong since last year significantly impacted housing demand in those areas in the first half.
“New sales of condos and townhouses in locations near industrial zones posted a consecutive drop for two quarters, from the first to the second quarter of this year,” he said.
In the second quarter of 2024, combined new sales of residential units in Chon Buri, Rayong and Chachoengsao totalled 5,132 units, valued at 16.8 billion baht, marking the lowest level since the REIC began conducting quarterly surveys in the first quarter of 2022.
This figure declined from 6,563 units worth 21.7 billion baht in the first quarter, which dropped from 7,872 units worth 25.8 billion in the fourth quarter of 2023, the highest quarterly figure since the first quarter of 2022.
By category and location, low-rise housing inventory in Rayong had the longest projected time to sell out, assuming no new supply is added, at 29 months, attributed to the large volume of available stock.
This trend was most pronounced in the price range of 2-3 million baht per unit, particularly in areas near industrial estates such as Nikhom Amata City-Eastern, Nikhom Hemaraj and Nikhom Map Ta Phut.
The largest low-rise housing supply was in Nikhom Amata City-Eastern, with 1,426 units available.
However, only 116 units were sold in the second quarter, representing a low absorption rate of 2.7%, with a projected 33.9 months to sell out.
Nikhom Hemaraj and Nikhom Map Ta Phut had total low-rise housing supplies of 1,093 and 1,065 units, with only 93 and 80 units sold in the second quarter, respectively.
The largest supply of low-rise housing in Chon Buri was also units priced 2-3 million baht, primarily in areas near industrial estates.
These areas included 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 in the second quarter, respectively.
The declining housing demand in the EEC during the first two quarters of 2024 contrasted with year-on-year increases of 3.3% and 8.3%, respectively, in the price index of vacant land, driven by an influx of Chinese investors entering the electric vehicle industry.
“The arrival of big brands like BYD and Changan in Rayong hasn’t boosted housing demand because they rely heavily on automation,” said Premsorn Sriviboonchai, managing director of Rayong-based developer VP Real Estate Property Development.