New launches in the condominium sector in the Gulf of Thailand city of Pattaya have diminished by more than half, according to the Pattaya Condominium Market Research Report released by real estate firm Colliers International Thailand.
Surachet Kongcheep, Associate Director of Research, told the media that about 3,800 units were launched during the first six months of the year, which is about 60 percent less than in the previous six month period.
He said the only exception to the overall decline was in the Jomtien area, which saw a 48 percent rise in new launches.
He said: “There are more than 28,200 condominium units under construction in Pattaya City that are expected to be completed in second half of 2014. Other locations have dramatically lower figures than Jomtien, because many large condominium projects have been launched in Jomtien in the past few years.”
The average take-up rate for Pattaya condominiums was around 73 percent – unchanged dramatically from previous years, according to Colliers.
According to Colliers many condominium projects had been launched in the past three years and some were still available. This was another factor impacting the market because buyers had a lot of choice and could take more time to make a decision.
“Local Thai buyers and foreign developers, as well as big names from Bangkok, are trying to attract more buyers through marketing campaigns such as a guaranteed yields of one to three years, which has attracted a lot of buyers,” Surachet said.
He noted that the average selling price of a condo launched in the first half of 2014 was approximately THB62,000 per sqm – unchanged from the end of 2013.
Andrew Batt, International Group Editor of PropertyGuru Group wrote this story. To contact him about this or other stories email andrew@propertyguru.com.sg
