The condominium property market in the Gulf of Thailand resort of Pattaya was certainly sending mixed messages to property watchers in the second half of last year.
Colliers International (Thailand), in its new Pattaya Research & Forecast Report for 2H 2015, noted a record number of new condominium units, some 6,675, were registered during the year.
At the same time, more than 30,000 condominiums are currently under construction and due for completion before the end of 2017.
The real estate firm noted that the 8,500 new units that were launched during 2015 was a significant decrease on the previous year, and it also observed that all property developers are currently trying to complete their projects before March and the expiration of the government’s tax and transfer rate policy.
Colliers said that Thailand’s economic situation as well as other factors have directly affected both buyer and developer confidence. It added that unsold and second-hand units are the main concern of all developers that are planning to launch new projects in Pattaya.
Demand, it said, has still not recovered and the weakening Russian ruble has been the main issue directly affecting Russian buyers – the largest foreign nationality buying in the city.
Despite all of this, Colliers noted how condominium prices in some locations in Pattaya are higher now than in 2014. Wongamat recorded the highest price as many luxury and high-level condominium projects are located there.
The average condominium price in the Pratumnak area significantly also increased from 2014. This was because some foreign developers increased their prices during 2015, while average prices in the Jomtien area remained the lowest in the Pattaya condominium market because many low-end condominium projects were launched during the past few years.
Some infrastructure development projects are becoming new factors for the Pattaya property market, Colliers said. The government announced some development projects in Chonburi, as well as a new ferry pier for the Pattaya – Pranburi route, a Pattaya – Map Ta Phut motorway and a high-speed train line from Bangkok to Rayong are three projects that will probably be started during 2016, it said.
All government development projects will increase interest in Pattaya in the future.
Forecast
Chinese developers are another new group in the Pattaya condominium market, following the flood of Chinese tourists that came to Pattaya City in the past few years. Still, the Chinese are not the main buyers in the market.
Colliers said that many developers will begin marketing campaigns to attract buyers during 2016, especially at completed projects, and will incorporate marketing campaigns that will include yield guarantees, free furniture and other incentives.
Many developers will reduce the number of new condominiums that are scheduled to be launched in Pattaya in 2016, Colliers said, while they waiting for the market to recover. With this in mind Colliers expects the number of new condominium units launched during 2016 will similar to 2015 – at approximately 9,000 units.
Main image: Pattaya /Wikicommons.
