Pattaya has seen alternating years of boom and decline and the condo market in the city was on the downturn last year, according to research from Colliers International Thailand. The market had been growing nicely during the last couple of years with more than 7,400 units were completed and registered at the Land Department between 2015 and 2016. However, developers are now pushing back launches in light of oversupply.
The beach area of Jomtien was the most popular area for condo developments during the latest market boom and the highest supply of completed units can be found here, says Colliers International Thailand. The Pattaya city area has second most completed condo units, but developers have been looking for land in new areas as supply close to the beach has become limited.
The market in the entire region has slowed with a sinking domestic economy and other negative factors souring sentiment from prospective foreign and Thai condo buyers. This caused developers to postpone or reduce new launches last year as the entire property market slowed.
A large number of available units remain for sale. There was a total of 307 new units launched in the first half of 2016 with 1,800 more launched in the second half, says Colliers International Thailand. This meant 2016 was the quietest year in terms of new launches since 2010. Developers are expected to remain very cautious in 2017 with so many condo units sitting unsold in Pattaya.
Another factor that could impact Pattaya’s market is the return of Russian tourists. The weakening of the Russian rouble hurt Pattaya as the city was popular with tourists from the country. Many of these visitors ended up becoming interested in buying a condo unit to serve as a holiday home. For the first time in a few years, Russian tourist arrivals to Thailand rose, but the new arrivals did not stimulate the city’s property market as was expected, says Colliers International Thailand.
Receive the latest property news on email from Thailand’s No.1 property website here, or read more project reviews
