MMM Capital takes off: Real estate boom in Rayong is gathering pace!

MMM Capital takes off: Real estate boom in Rayong is gathering pace!

There is a lot happening in Thailand's dynamic real estate landscape. MMM Capital (บมจ. MMM) is a driving force in real estate sales and recently took over sales management for the Living Sense 2 project in the Rayong Industrial Zone, valued at 35 million baht. The transfer of ownership is expected to take place by the end of the first quarter of 2025, promising MMM immediate income from the sales. Thaipr.net reports that MMM would like to complete a total of 1 to 2 additional projects by the end of 2025 in order to further expand the existing range of 8 projects in the single-family home sector.

Living Sense 2 impresses with 8 units and a prime location, close to the beach and U-Tapao Airport. The continuously growing demand for housing in Rayong, especially in the Eastern Economic Corridor (EEC), gives hope for promising businesses. MMM's planned sales promotions aim to boost sales by the end of the year and sell all units of the project by the end of Q1 2025.

Market development in the EEC

The Thai economy faces several challenges. High interest rates and strict credit guidelines are causing problems for the purchase market, while rental income in the EEC is booming. Bangkokbiznews highlights that Rayong has established itself as a rental property hotspot, driven by over 2,800 factories and more than 220,000 jobs located in the region. Demand for rental housing is growing rapidly, not least due to massive investments in the electric vehicle industry of over 50 billion baht.

Hampton Hotel and Residence Management (HHR) is active in this sector and plans to expand its rental portfolio in Rayong to 1,800 units. The Notting Hill Rayong City and Brixton Rayong projects have occupancy rates of 85-90% and offer returns of 6-8% per annum, which is above the market average. There are also plans to open the new project “The Hampton Suites Rayong” in August. This will not only offer extensive amenities, but also combine design expertise with a hotel service model, aiming for long-term returns in the range of 5-9%.

External factors and outlook

Market analyzes of the Thai real estate market show a certain resilience, despite high interest rates and government requirements. Loud REMAX Residential property prices, especially condominiums, achieved growth of 2.5-3.6% year-on-year. Foreign investors, particularly buyers from China and Myanmar, are making up an increasingly larger share of transactions. Still, the mid-market remains constrained in terms of affordability.

The coming year will promise a selective market recovery as the focus on earthquake-resistant properties continues to gain traction - especially after the March 2025 earthquake impacted buyer preferences. Tourism and government incentives could further boost the industry, while the environmental picture remains dominated by concerns about global economic uncertainties.

Overall, the real estate market in Thailand presents a mix of challenges and opportunities. It remains to be seen whether investors are well positioned for the next steps, but the prospect of growth appears to be there.