Due to the excess condo unit supply and the decreasing foreign buyer demand, the Pattaya developers started to slow down, freeze and even modify their recent developments in the city, based from property consultants.
Excess supply in Pattaya condo units
Surachat Kongcheep who is an associate director for research at Colliers International Thailand, a property consultant company, indicated that only 307 condominium units were introduced throughout Pattaya during the first half, this is a sudden drop in comparison to last year’s second half also the lowest level for several years.
Ever since the first half of 2011, the new condo unit supply introduced per half amounted to more than 3,000 units. The amounts during the year’s first half decreased uninterruptedly ever since last year’s first half, based from Colliers’ research.
Mr Surachat mentioned that this is partly due to the decrease of Russian tourists who are the chief buyers of condo units in Pattaya for over several years. He added that the several of the latest supply are still waiting to be purchased.
A sum of 72,000 units were declared during 2011 until this year’s first half. However, more than 17,000 units are still available as of June this year. A boost in the sales of the ready-to-transfer units, where the take-up rate was at 77%, was due primarily to the property tax incentives offered by the Thai government, which expired late April.
Sluggish sales in Pattaya condo units
The managing director Tirachai Pipitsupaphol from Ocean Property Co mentioned that their company still has available units at their Ocean Portofino Condominium near Jomtien Beach. This has a total of 1 billion baht in value.
Fragrant Property Ltd, a Bangkok based condo units developer, also faces sluggish sales. They decided to put on hold a recent condo project in Pattaya ever since last year because of low sales rate. Meanwhile, Magnolia Quality Development Corporation is also modifying plans for their large scale project in Pattaya to co-invest with a Chinese partner.
Regardless of the sluggish sales in Pattaya’s property market, for those who still want to buy houses, condo units and other properties, East Coast Real Estate has resources online in their website worthy of checking out.