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: Transfers of second-hand condos rose in the EEC, outpacing new condos and low-rise houses.
- Budget-Friendly Options: Units priced below 5 million baht are driving the market.
- Shifting Preferences: Buyers are favoring 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 of Chon Buri, Rayong, and Chachoengsao. This represented a total value of 29.5 billion baht, although it marked a decline from the previous year’s figures of 12,532 units valued at 32.8 billion baht.
The data indicates a significant shift in buyer behavior, with second-hand condos becoming increasingly popular. Siddhipen Siddharthapong, acting assistant director-general of REIC, noted that the economic slowdown has made second-hand homes more appealing due to their lower price points compared to new units.
Sales Breakdown
- Second-Hand Condos:
- Low-Rise Houses:
The data reveals that while the number of condo transfers saw a slight decline, the value dropped significantly, indicating a shift towards more affordable options.
Buyer Preferences
The preference for second-hand condos over low-rise houses can be attributed to several factors:
- Affordability: Second-hand condos are generally priced lower, making them more accessible for buyers with limited budgets.
- Location: Many second-hand condos are situated in desirable areas closer to employment opportunities, which is a significant consideration for buyers.
- Market Trends: The overall trend shows that buyers are increasingly looking for value, leading to a preference for second-hand units.
Future Outlook
Looking ahead, the market for second-hand condos in Thailand’s EEC is expected to remain robust as economic conditions continue to influence buyer behavior. The REIC reports that only second-hand condos saw an increase in sales, rising by 17.7%, while other categories, including new condos and low-rise houses, experienced declines.
In particular, new condo units priced below 1.5 million baht are gaining traction, with a notable increase of 35.1% for units priced below 1 million baht. This trend suggests that affordability will continue to be a key driver in the real estate market as buyers navigate the challenges of a sluggish economy.
As the demand for second-hand condos grows, it will be interesting to see how developers and investors respond to this shift in the market dynamics, potentially leading to new opportunities in the real estate sector.
Sources
