A bird's eye view of Pattaya Bay as seen from Khao Phra Tamnak, a popular tourist spot in Bang Lamung district of Chon Buri.  PATTANAPONG HIRUNARD

The residential market in Chon Buri still has growth potential but caution is needed due to the oversupply of condos and townhouse sales declining for five consecutive quarters.

Vichai Viratkapan, acting director-general of the Real Estate Information Center, said the overall Chon Buri residential market was significantly driven by condos which accounted for 78%.

"The condo market in Chon Buri during the first quarter of 2024 was robust, with a substantial increase in new supply launched in Pattaya and Jomtien, rising more than 1.5 times compared to the same period last year," he said.

In the first quarter of 2024, the number of new condo launches in Chon Buri tallied 5,542 units worth 21.5 billion baht, up from 79 units in the same period last year, which was an increase for four consecutive quarters.

The influx of new condo units also boosted the total number of residential units launched in Chon Buri by 448%, reaching 7,106 units valued at 27.8 billion baht. Condos accounted for 78% of the units and 77% of the total value.

The number of newly launched low-rise houses, comprising 22% of the total, saw growth of 28% to 1,564 units valued at 6.37 billion baht.

New sales mirrored the strong supply, showing a year-on-year growth of 54% to 4,545 units sold, worth 16.3 billion baht, with an absorption rate of 4.5% per month.

Condo sales saw the largest increase, soaring 183% to 2,787 units worth 9.14 billion baht, with an absorption rate of 4.6% per month.

Sales of low-rise houses totalled 1,758 units, down 10.6%, valued at 7.16 billion baht, with an absorption rate of 4.3%.

Most new condo sales came from recently launched projects, while earlier projects experienced slower sales.

The top three locations for new condo sales were Jomtien with 604 units worth 2.43 billion baht and an absorption rate of 3.6% per month, followed by Nikhom Pan Thong-Phanat Nikhom (499 units) and Pattaya-Khao Phra Tamnak (481 units).

The top three locations for sales of low-rise houses were Nikhom Pan Thong-Phanat Nikhom with 285 units worth 723 million baht, followed by Bang Saen-Nhong Mon-Bang Phra (247 units) and Nikhom Amata Nakorn-Bypass (221 units).

The number of unsold units rose 10.8% to 29,224 units worth around 110 billion baht, driven by a 26% increase in unsold condos to 17,300 units worth 66.3 billion baht, while unsold low-rise houses dropped 6% to 11,924 units worth 43.7 billion baht.

The top three locations overwhelmed with unsold condos included Jomtien with 5,000 units worth 22 billion baht, followed by Pattaya-Khao Phra Tamnak (4,334 units) and Nikhom Amata Nakorn-Bypass (2,423 units).

"Condo demand has continuously increased post-pandemic, but the rise in supply has far exceeded market needs, prompting caution against excessive condo supply, as well as townhouses, sales of which have consistently declined over the past five consecutive quarters," Mr Vichai said.