In a notable shift in the real estate market, second-hand condominiums in Thailand’s Eastern Economic Corridor (EEC) are experiencing a surge in sales, particularly among budget-conscious buyers. This trend is attributed to the economic slowdown, which has led many to opt for more affordable housing options.
Key Takeaways
- Increased Sales: Second-hand condo transfers rose in the EEC, particularly in Chon Buri, Rayong, and Chachoengsao.
- Budget-Friendly Options: Units priced below 5 million baht are driving the market.
- Preference for Condos: Buyers favor second-hand condos over low-rise houses due to location and affordability.
Market Overview
According to the Real Estate Information Center (REIC), the second quarter of 2024 saw a total of 12,033 second-hand residential units transferred in the EEC provinces, valued at 29.5 billion baht. This marks a decrease from the previous year, where 12,532 units were valued at 32.8 billion baht.
The breakdown of the market reveals:
- Second-Hand Condos: 3,643 units transferred, a slight decline of 1.2% from 3,686 units, but a significant drop in value by 18.3% to 8.36 billion baht.
- Low-Rise Houses: Transfers fell to 8,390 units, down 5.2% from 8,846 units, with a value decrease of 6.3% to 21.1 billion baht.
Economic Factors Influencing Sales
Siddhipen Siddharthapong, acting assistant director-general of REIC, noted that the sluggish economy has prompted buyers to seek more affordable housing. She stated, "When the economy slows down, second-hand homes tend to sell well because they are priced lower than new units and are often in more desirable locations."
This trend indicates a shift in buyer preferences, with many opting for second-hand condos over low-rise houses. The reasons include:
- Affordability: Second-hand condos are generally less expensive than new constructions.
- Location: Many second-hand units are situated closer to employment centers, making them more appealing.
Price Segmentation
The REIC data also highlights a significant trend in pricing:
- New Condos Below 1.5 Million Baht: This segment saw a year-on-year increase of 35.1% for units priced below 1 million baht and 13.9% for those priced between 1-1.5 million baht.
- Second-Hand Units: Only second-hand condos experienced an increase in sales, rising by 17.7%, while other categories, including new condos and low-rise houses, saw declines.
Conclusion
The rising popularity of second-hand condos in Thailand’s Eastern Corridor reflects broader economic trends and changing buyer preferences. As the market adapts to economic challenges, the demand for affordable housing options is likely to continue, shaping the future of real estate in the region.
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