Developers in Thailand’s Rayong have been adjusting to a market slowdown by reducing the of newly launched residential supply in the first quarter of 2024.
Vichai Viratkapan, acting director-general of the Real Estate Information Center (REIC), says the Rayong market, mainly composed of low-rise houses, experienced a decline in sales in the first quarter.
From the first quarter of 2023 to the first quarter of 2024, each quarter saw an average of 1,500 new low-rise house sales, including 600 single detached houses, 550 townhouses and 350 twin houses.
However, sales in each quarter recorded slowing sales, especially for townhouses. In the previous quarters, the number of new launches averaged 1,000 units per quarter, mostly single detached houses.
According to REIC, the number of unsold twin houses and townhouses decreased consecutively for five quarters, with a year-on-year drop of 21% in the first quarter of 2024.
The number of launches of new residential supply in the first quarter of 2024 tallied 879, down by 37%, valued at 2.3 billion baht. All of these were low-rise houses, including single detached houses (51%), twin houses, and townhouses.
Condo sales stood at 130 units, falling 37.5% and valued at 367 million baht.
Locations with the largest number of condos sold included Muang with 71 units worth 148 million baht, followed by Nikhom Map Ta Phut.
“Developers should pause new launches of condo supply temporarily, allowing the market to gradually absorb the existing inventory,” Mr Vichai says.
Rayong province is one of the areas designated for the development of the Eastern Economic Corridor (EEC), which Thailand hopes to become a hub or trade and investment.
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