Eastern Seaboard residential demand was noticeable better last year with experts believing record setting export values being the primary reason why. Factories in the Eastern Economic Corridor (EEC) weren’t disrupted by the COVID-19 pandemic in 2021 which helped lift the property market.
“Since the pandemic, industrial estates in Map Ta Phut have faced less impact as most of them are upstream industries like plastic pellets. Housing demand near Map Ta Phut is robust,” Khun Premsorn Sriviboonchai, Rayong Real Estate Association President, was quoted as saying by the Bangkok Post. “”Sales of both low-rise houses and condos in Rayong were better as purchasing power was boosted by overtime.”
Total export values excluding gold rose by more than 24 percent in 2021 when compared to 2020 totals, Bank of Thailand figures show. Additionally, a weaker Thai baht boosted the purchasing power of employees in the industrial export sector.
According to the Real Estate Information Center, stronger Eastern Seaboard residential demand meant housing supply in Chon Buri, Rayong and Chachoengsao provinces fell last year. This trend is expected to continue in 2022.
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Eastern Seaboard residential demand led by domestic buyers
Eastern Seaboard residential demand grew during the COVID-19 pandemic, but it wasn’t enough to offset the loss of overseas property interest. However, it helped stabilized the residential real estate market. Findings in the Dot Property Group Report: How Has COVID-19 Impacted the Thailand Property Market? found that demand was down five percent between April 2020 and March 2021 when compared to the previous 12 months.
Condominiums continue to dominate the Eastern Seaboard real estate landscape, although there was increasing interest in villas and houses among international property seekers. In the 12 months before the COVID-19 pandemic, these accounted for 28.5 percent of total overseas residential real estate enquiries in Pattaya, Chonburi and Rayong. The figure rose to 33.4 percent between April 2020 and March 2021. However, the segment saw almost no change in domestic demand.
In terms of price, demand for THB3-5 million condo units sunk by 24.1 percent during the COVID-19 pandemic. This was the only segment that saw a double-digit decrease in enquiries. The THB10-30 million condo segment was the sole price point that saw an increase in demand during the pandemic.
Read More: Domestic demand lifts Eastern Seaboard property market during COVID-19 pandemic