Chonburi's Shifting Real Estate Landscape

In recent years, Chonburi's real estate market has faced significant challenges, especially in the housing estate sector, with new sales seeing a consistent decline since 2023-2024.

The Decline in Sales: Data from the Real Estate Information Center (REIC) shows a dramatic drop in new housing estate sales in Chonburi during 2024, with decreases ranging from 10.3% to 51.7% from Q1 to Q4. This follows a similar negative trend observed in 2023.

Root Causes and Market Adaptation

The primary factor behind this downturn is shrinking purchasing power, leading to fewer loan approvals by financial institutions. This has left many potential buyers unable to secure credit, even for properties under 3 million baht.

Despite increased foreign investment in industrial parks, the lack of labor opportunities due to automation has not helped revive the market. In response, developers are shifting focus from sales to rentals, a strategy that has shown promising results.

Success in Rental Strategies

One notable example is a housing project in the Amata Industrial City area, which switched from selling to renting townhouses at 4,500 baht per month, achieving a 100% rental rate. This pivot highlights a potential pathway for tenants through Rent-to-Own models, though challenges remain in transitioning renters to homeowners.

However, the feasibility of this model is questioned, as rental payments may not adequately prepare tenants for future mortgage obligations. The market's recovery may ultimately depend on improved loan accessibility and adjusted bank lending conditions.