The market for condominiums in Pattaya slows no signs of improving as an excess of supply continues to bring the market down. Developers are also concerned about buyers being reluctant to have units transferred.
Surachet Kongcheep, associate director of property consultancy Colliers International Thailand, told the newspaper that despite a decrease in the number new units launched, there were no signs of recovery in Pattaya’s moribund condo market.
A total of 10 condo projects launched with 5,280 units in the first half of 2015, a significant drop from the 8,670 units launched in the second half of last year. Negative domestic factors and a weak global economic situation were the two main reasons for the decrease.
“Foreign tourist arrivals have dropped, particularly Russians, who were the main condo buyers in Pattaya,” Surachet said. “This has caused a slowdown in the Pattaya condo market despite an increasing number of Chinese arrivals in the past two years, as Chinese are not major condo buyers.”
He added that even though there are some condo projects from Chinese investors expected to launch in Pattaya, the market is still oversupplied and continues to be slow. From 2011 to the first half of this year, 68,400 units were launched, with 18,000 still for sale on the market.
“If the number of remaining units is combined with the possible number of speculated units, the number surpasses 22,000,” Surachet said. “They [developers] are very worried about buyers reluctant to have units transferred, as many speculators and investors are in the Pattaya condo market, and Russians, the main buyers, have a weak currency.”
