More than 28,200 condominium units are currently under construction in the city of Pattaya and are expected to be completed before the end of this year.
These figures come from Colliers in its Pattaya Condominium Market report, published this week, and combined with average take-up rates similar to the past few years at 73 percent, could see the city entering a serious oversupply situation in the coming months.
According to Surachet Kongcheep, Associate Director of Research at Colliers International Thailand, May’s coup had had a direct effect on the confidence of Thais, who generally postponed the need to make any decisions regarding the purchase of new property in the last quarter of 2013 and the first few months of 2014 across all locations of Thailand.
Although the number of new launches was down 60 percent year-on-year in the first half of 2014, the political situation directly affected all of the property market, including the Pattaya city market, Surachat noted.
In addition, many condominium projects were launched in the past one to three years and some are still available in the market. This is another factor impacting the market, because buyers have a lot of choices and take more time before make a decision.
“The Pattaya condominium market will probably be better in the second half of 2014, due to the high season. The political situation is also stable and the establishment of a new government may boost the confidence of foreign tourists as well as being good for the Pattaya condominium market,” Surachet concluded.
Andrew Batt, International Group Editor of PropertyGuru Group wrote this story. To contact him about this or other stories email andrew@propertyguru.com.sg
