As we have now well and truly entered 2017 the implications on the Pattaya Real Estate Market from Thailand’s GDP is well worth evaluating. Although the property market in the kingdom does rely heavily how the country is faring from its economic recovery, Pattaya and other tourist destinations have also always had the luxury of many overseas buyers. The buying demographic of Pattaya real estate has changed dramatically over the last five years, and there has been a sharp increase of affluent Thai buyers, mostly from Bangkok, investing in Pattaya. Therefore the Pattaya market is affected now more than ever on how the general economy in Thailand is faring.
The National Economic and Social Development Board recently announced that Thailand’s 4Q2016 GDP growth figure was 3.0% year on year, this temporary softening of growth still was 0.4% increase on the previous quarter. As a result the whole economy grew 3.2% year on year. To put this into perspective, world GDP growth for 2016 was 3.09%. Therefore Thailand is pretty much on track with the rest of the world for economic growth. These figures will encourage the whole Thailand building industry and give more confidence in building developers and investors alike. The high growth figures of 2010 and 2012 of around 8% are still far away, but the Thai economy has steadily grown since 2014 and projected figures for 2018 will see increased growth yet again. Higher growth will gradually resume after the tourist sector continues to improve with the support from domestic spending.
Thailand tourist arrivals reached an all time high in January 2017 at 3,197,050 which sent positive signals to all industries within the kingdom, especially the real estate market. The Chinese revolution is certainly propping up condominium sales and as the figures increase of Chinese real estate agents then Chinese sales have only got one way to go, and that is upward. Obviously the transition from Pattaya’s traditional condo markets of European and Russian buyers to Chinese and Thai investors, will take time. At the moment it is at a levelling off period with the new buying just replacing the old, and the market has been stable. As increased Chinese buyers and more wealthy Thai investors enter into the Pattaya real estate market then the future looks increasingly more rosy. One note of caution is Trump’s trade protection policy and the implications it may have on China. If it is implemented then this may stall Thailand’s export recovery. Many believe that the Chinese government can effectively manage the situation if this does occur and caution should be tempered with optimism. Now is the perfect time to invest in real estate in Pattaya, developers such as the Global Top Group are enticing investors with fantastic deals, such as guaranteed returns and luxury furniture packages. A wise man invests when the markets are low, and unlike securities that can fluctuate wildly, bricks and mortar never really carry the same risk.