by Daryl Lum | Oct 7, 2024 | Bangkok Property Market Updates, Resale & Exit Strategy
Sales of second-hand condos in Thailand’s Eastern Economic Corridor (EEC) are performing well.
According to the Real Estate Information Centre (REIC), the number of second-hand condo transfers in the EEC provinces increased in the second quarter of 2024 compared to both new condos and new and second-hand low-rise houses, with the majority of activity focused on units priced below 5 million baht.
Siddhipen Siddharthapong, acting assistant director-general, stated that this trend indicates a limited budget among homebuyers in Chon Buri, Rayong, and Chachoengsao, driven by a sluggish economy.
“When the economy slows, second-hand homes often perform better in the market due to their lower prices compared to new units and more desirable locations,” she explained.
“Second-hand condos are more appealing than second-hand low-rise houses, as potential buyers either cannot afford the latter or find that similarly priced options are too far from their workplaces.”
REIC’s data shows that second-hand residential unit transfers in Chon Buri, Rayong, and Chachoengsao amounted to 12,033 units valued at 29.5 billion baht in the second quarter of 2024, a decline from 12,532 units worth 32.8 billion baht in the same period last year.
The most significant drop was seen in low-rise houses, with transfers falling to 8,390 units worth 21.1 billion baht, representing declines of 5.2% in units and 6.3% in value, compared to 8,846 units worth 22.5 billion baht previously.
Condo transfers by unit number fell slightly by 1.2% to 3,643 units from 3,686 units, but the value declined more sharply, decreasing by 18.3% to 8.36 billion baht from 10.2 billion baht.
This indicates that while demand remains robust, buyers are focusing on lower-priced units.
Among categories, only second-hand condos saw an increase, rising 17.7%, whereas new condos, new low-rise houses, and second-hand low-rise houses recorded declines of 14.8%, 6.1%, and 4.5%, respectively.
In terms of pricing, new condos priced below 1.5 million baht were the only segment to experience year-on-year growth, with units below 1 million baht increasing by 35.1%, and those priced between 1 and 1.5 million baht rising by 13.9%.
by Daryl Lum | Oct 2, 2024 | Bangkok Property Market Updates, Resale & Exit Strategy
The share of pre-owned home transfers in Greater Bangkok has increased for two consecutive quarters, driven by weakened purchasing power due to the economic slowdown, according to the Real Estate Information Centre (REIC).
Siddhipen Siddharthapong, acting assistant director-general of the REIC, noted that many homebuyers, particularly in the lower-end market segment, were unable to find homes at their desired price points, leading them to choose more affordable alternatives.
“Pre-owned homes are generally priced lower than new ones of similar size and location,” she stated.
“Given the high household debt and interest rates, many homebuyers are opting for more cost-effective second-hand properties.”
As per the REIC, 21,504 low-rise houses in Greater Bangkok were transferred in the second quarter of 2024, with a total value of 93.2 billion baht—representing a year-on-year decline of 13.5% in volume and 5.6% in value.
The largest decreases were seen in homes transferred by companies, which the REIC considers new homes, with the number of units dropping by 22.5% to 9,087, and value falling by 7.8% to 56.9 billion baht.
Meanwhile, transfers of homes by individuals, categorized as pre-owned homes, declined by 5.5% to 12,417 units, with the value falling by 1.9% to 36.3 billion baht.
The proportion of transferred pre-owned low-rise houses rose to 57.8% in Q2 2024, up from 57.3% in Q1 and 53% in Q4 2023.
For unit sales, the largest increase during the period was seen in units priced over 100 million baht and those between 80-100 million baht, rising by 300% and 150% to four and ten units, respectively. Both categories comprised new homes.
For the pre-owned segment, homes priced above 100 million baht saw the highest year-on-year growth, increasing by 125% to nine units.
Among new homes priced below 80 million baht, units priced between 20-60 million baht increased, while other price categories declined, with units below 1 million baht experiencing the sharpest decline, down 47.2%.
For pre-owned properties, units priced below 3 million baht, between 7.5-10 million baht, and between 20-60 million baht also saw a year-on-year decrease.
According to the REIC, transfers of low-rise housing better reflect market trends than condominiums, as these involve shorter-term decisions made by buyers within approximately six months due to the shorter construction timeline.
