The property market in Ayutthaya is experiencing a rebound for condos priced between 1-1.5 million baht, with strong growth in the second half of 2022. The city’s growing industrial sector and tourism recovery are the main drivers behind the surge, according to Somphon Rattchathapimolchai, the chief marketing officer of Ayutthaya City Park Shopping Complex.
With five industrial estates in Ayutthaya boasting over 6,500 factories and 497,984 workers, the growing industrial sector is boosting demand for housing near industrial estates, particularly single detached houses and duplex houses. Condo projects near industrial estates are also seeing high absorption rates of 80-90%, while condos and townhouses for rent are recording good monthly rates of 8,000-13,000 baht.
In addition to the industrial sector, tourism is also contributing to the city’s growth. Ayutthaya is a UNESCO World Heritage City and attracts tourists to its historical park, which features archaeological sites, palaces, Buddhist temples, monasteries, and statues. After the pandemic, foreign tourists have started to return to the city, boosting the income of local residents.
According to the Real Estate Information Center (REIC), there were 279 newly launched residential units in Ayutthaya in the second half of 2022, down 78% year-on-year. The majority of the new supply was condos, all from Bangkok-based listed developers, with 237 units priced between 1-1.5 million baht and the remaining units priced between 1.51-2 million baht.
Residential Supply & Demand in Ayutthaya according to the Real Estate Information Center (Bangkok Post graphic)
Sales of new condos soared in the second half of 2022, with 183 units worth 292 million baht sold, up from 24 units worth 55 million baht in the first half of the year. Around 84% of the sales were located near the Bang Pa-in Industrial Estate, with the remaining 16% near the Rojana Industrial Park. The absorption rate for condos was 5.7% per month, the highest among all housing types, up from 1.2% in the first half of 2022 but slightly lower than 6.6% in the second half of 2021.
Newly launched low-rise housing supply in the second half of 2022 totaled 42 units, all townhouses, after recording the largest volume in more than four years at 1,526 units in the first half. Low-rise housing near Rojana Industrial Park was priced between 2-5 million baht, while units near Bang Pa-in Industrial Estate were priced lower than 3 million baht.
While condo and townhouse sales have been strong, there is a concern about a glut of unsold units, particularly those that are already completed and ready for transfer. In 2022, there were 6,383 unsold low-rise houses worth 21.2 billion baht and 352 unsold condo units worth 751 million baht in the area. Of these, 658 low-rise houses and 143 condo units were ready for transfer.
Ayutthaya’s property market is showing signs of strength due to its growing industrial sector, tourism recovery, and affordable prices, particularly for condos priced between 1-1.5 million baht. As more people are attracted to the city’s economic opportunities and cultural attractions, the market is expected to continue to grow in the coming years.
Commentaires