Real estate sector faces a glut of residential properties
High loan rejection rates, stringent financial institution policies, and rising interest rates are continuing to impact the real estate sector, with residential properties in Bangkok and surrounding areas recording a surplus of 206,246 units, valued at 1.02 trillion baht.
This represents an increase of 3.3% and 5.3% respectively, compared to the same period last year.
Of this total, 23,080 units come from new projects, accounting for only 11.19% of the total units offered. These new units have a value of 127.77 billion baht, or 12.54% of the total value. However, the number and value of these new units have decreased compared to the same period last year by 19.0% and 6.6%, respectively. This decrease includes 11,224 allocated houses with a total value of 80.3 billion baht, a decrease of 7.8%. There are also 11,856 condominium units, with a value of 47.47 billion baht, representing a 5.9% increase in value.
According to Vichai Viratkapan, inspector and acting director of the Real Estate Information Centre at the Government Housing Bank, the overall housing market, including both horizontal and condominium projects, faced a challenge in the second quarter. Newly sold residential units were recorded at 15,959 valued at 83.50 billion baht. This represents a decrease of 32.3% in units and a 28.4% decrease in value.
Out of these, 5,909 units were condominiums, with a total value of 24.9 billion baht, a decrease of 56.5% in units and 53.1% in value. The allocated houses amounted to 10,050 units, with a value of 59.49 billion baht, indicating an increase of 0.7% in units and a decrease of 8.9% in value.
Remaining unsold residential properties in the second quarter of this year stood at 190,287 units, an increase of 8.0%. The total value was 935.82 billion baht, increasing by 9.9%. This comprised 74,230 condominium units, increasing by 11.2% and with a total value of 290.64 billion baht, decreasing by 1.3%. Additionally, there were 116,057 allocated house units, an increase of 6.1%, with a total value of 645.182 billion baht, a rise of 15.8%.