The Pattaya property market saw more than 14,000 condos for sale at the end of June 2018, despite average take-up rates approaching 82 percent.
The property market in the Gulf of Thailand city has seen a significant slowdown since 2015 due to a substantial number of new launches, according to the latest research by real estate firm Colliers International Thailand.
Colliers said that the sheer number of unsold units has directly affected the confidence of developers and buyers, especially Russians, who are the primary buyers of condominiums in the Pattaya property market.
It added that some condo projects have been halted or postponed due to slow sales performance, while some Chinese developers launched new Pattaya condo projects during the first six months of 2018, especially in Jomtien and Na Jomtien.
“Since condos in Pattaya City are second or weekend homes for Thai buyers, and thus not their priority, purchases by Thai buyers have been postponed as economic expectations remain unmet,” Colliers reported.
Just 3,563 condominium units were launched in the Pattaya property market during the first half of 2018, which was still more than the second half of 2017 (1,934 units).
The city saw more than 15,000 new units coming to the market every year between 2011 and 2013, according to Colliers, and more than 75,600 from the start of 2011 through until the end of June 2018.
Colliers noted that the Pattaya property market differs from Bangkok’s because just 14.7 percent of total condo units have been developed by listed developers.
It added that the Pratumnak area is the only location where condominium projects have continued to be launched since 2011.
Whereas Jomtien and Na Jomtien are primary locations for large-scale condominium projects, many small condominium projects have been launched in Pratumnak due to the availability of land plots and the less restrictive laws and regulations, Colliers said.
Although Chinese and Japanese have become new a foreign buying sector in the Pattaya property market, their numbers remain significantly lower than those of Russian buyers during the past few years.
Average selling prices of condos in all locations in Pattaya during the remainder of 2018 will be similar to, or slightly higher than, those seen during the first half of the year.
Although the market has not recovered and many ready-to-move units are waiting to be absorbed by the market, many Pattaya property developers are trying to maintain their selling prices during 2018.