It has long been a bandied cliche in the bars and coffee houses around Pattaya that the property market in the popular resort town is to say the least depressed.
It might therefore surprise many people that a survey carried out in 2016 by the Plus Property Group in Bangkok, revealed that condominiums in Pattaya, Phuket, Hua Hin, Cha-am and Khao Yai are new attractive low-risk assets due to two-fold benefits, which are resale profits and yields from rentals. This may be a bolt out of the blue for many property developers and real estate salesman who for over the last eighteen months have repeatedly told us that property sales are on the floor. The contributing factors of political unrest, the Global and Russian economies and the growth of other markets have in no doubt affected real estate sales in Pattaya. However, it must be said that we are comparing a present market against past boom years, so what is the real story.
According to TAT (Tourism Authority of Thailand) the statistics of tourist arrivals in Thailand indicate that there were 29.88 million visitors in 2015, an increase of 20.44% compared to 24.8 million in 2014, with Pattaya cited as one of the most popular destinations. The statement is supported by rising number of tourist arrivals that goes up every year. In Pattaya, the supply of condominiums is now at 38,000, whilst the demand is at 82%. This figure taken from the survey indicates that Pattaya does have a vibrant real estate outlook for the future.
There has been a change of the demographic in the last couple of years of what types of property are selling in Pattaya and who is buying them. An increasing number of Thai nationals are either buying holiday homes or investing in property as the Thai economy strengthens. The Russian market has been replaced by a buoyant Chinese one, and European investors are starting to return. The condominium type has also changed, the top end luxury market is still performing well whilst the influx of simple developments offering units at 1 million baht has proved that this philosophy is valid.
The survey continued to bring good news, in that property in Pattaya has definitely seen a demand growth due to the partial recovery of tourism. This coupled with the Thai government’s mega projects such as, infrastructure investment including U-Tapao airport, and the new highway from Pattaya to Map Ta Put. Pattaya has always had strong links to its resident expats and because of their influence, attractions that are not found elsewhere in Thailand are here in Pattaya. For example, top international schools, high quality medical services, superb championship golf courses, 5-star restaurants and many more. These amenities and facilities has always given Pattaya an edge over its competitors, and with the gradual increase in tourism the real estate market in Pattaya is growing.
The truth of the situation is that the real estate market on the Eastern Seaboard is changing. Savvy Thai and Chinese buyers haggle for large discounts, and competition is definitely fierce. But in a perverse way, in the long term, this may attract future investors and bring realistic and true prices to the market. The property situation in Pattaya will not just switch on like a light, it will gradually progress over time and will redevelop itself. Investors and developers alike need to remember exactly what Pattaya has to offer and realise the potential investment possibilities. The Global Top Group are highly respected developers on the Eastern Seaboard, for the truth of the situation and to see their extensive portfolio of developments contact them today.