The stagnant housing market in Pattaya
Estate agents in Pattaya say that the housing market will stagnate further in the coming years. After the fall in the value of the Russian ruble in 2014, the sale of condos in particular has come to a grinding and squeaking halt.
Developers are trying to find buyers for the number of unsold units, but will have to be patient. In 2016, many construction orders were postponed to a later date. Until 2015, 10.000 units were built, in 2016 there were only 2.100 units.
There was a slight uptick in 2018 as more and more Indians bought condos. Chinese buyers also arrived, but both target groups cannot stop the decline.
Jomtien has the largest selection of housing units. Compared to other parts of the city, land prices are less high, so that proportionally more could be sold. Although brokers claim otherwise, the counter of unsold homes stands at 14.000 units. Some buyers want to cancel or try to resell their reserved condo. This includes the objects that were intended for speculation. However, many will have to accept their loss.
Most developers try to keep their price stable or increase it by a marginal price. The experts do not expect any price changes throughout 2018.
What could also help are decent prices for the real estate offered.
Too many salespeople flock with euro signs or rather, Bah signs in the eyes.
On top of that, only condos are worth considering. If you want to have a house with a (little) garden… It is better to rent…
After all, as a Falang you cannot buy or own land. And that makes the choice very limited.
The developers had better lower their price.
A newly built house that has been for sale for years will undoubtedly not look like new anymore.
The chance that people would therefore want to pay more than the current price in the future seems to me to be minimal.
By lowering the price, they will receive at least their investment and part of the planned profit.
We also see something like this here in Chiang Mai. Lots on offer, many advertisements but less demand, also in rental.
We also think that the top has now been crossed. And the cost of living is also rising!
If you have an apartment for sale yourself, you need the cooperation of the real estate agents. They all want your file but nothing is done with it.
I myself have a beautiful three bedroom apartment for sale in Jomtien and the real estate agents are walking down the door. Nice, yes, I have a buyer, etc… They should not resist the price. 5,99 Mbaht is among the cheapest three-bedroom apartments with a sea view.
Those brokers are not brokers, they are shop windows. professionalism ZERO.
Many who invest in such projects were/or are, so impressed by the prices that many foreigners were willing to pay, that one could almost speak of a construction hysteria.
Wrong planning, too little regard for economic change, and the desire to quickly fill pockets with money, are now to blame for its stagnation, with many becoming victims of their own vulture.
But I still see condos (and large complexes) being built.
In my opinion, prices are still far too high for old houses and condos; the price drops and buyers come naturally,
We have lived in and sold 3 houses, simple enough; don't go for the top prize!
In existing villages, for example, new price 1.5 - 2 million baht, current asking prices of say 10 year old house 2.5 million +++ well what do people want?
Also take into account the so-called exchange rate profit, then 50 baht for euros, now 37,5, which is nice to exchange back 🙂
Currently, large numbers of condo complexes are still being built. Prices to dazzle. For example, the Israeli Heights Holding offers in their new plan condos with a bedroom (TJE) that in total, so including the bedroom (TJE) and balcony, is approximately 27 m2. You would then expect a price of up to approx. 1.2 million THB, but people are asking no less than 3 million. Decoys are used for this, such as a guarantee of 50% return over the first five years, but in fact they simply pay back what you have paid too much yourself, while they also collect the interest from this…..and then you can not live there of course. In the discussion we had about this in our swimming pool, the word “a Jewish area” came up. But how many will not garden? 10% yield per year, you can always come home with that.
That is the new construction market. But the rental market may be even worse. Fewer Westerners are coming to Thailand (Pattaya-Jomtien)
In Jomtien, 2 towers are newly built next to each other. I mean 32 floors, but now it appears that the glass that has been used is not good and as I understood it has to be removed and replaced with a new one.
Apparently the project developer is at odds with the municipality and the key transfer should have been 2 years ago.
Deposits of more than 500.000 baht in total have been made, but nothing is returned, a lawyer would now be looking at it for an acquaintance, but I think that will take just as long.
If I hear that and see what is being thrown out of the ground everywhere, especially here in Bangkok, it seems like a bad investment. With rental prices ranging between 8 and 15 thousand and the incredibly large offer for a condo that still costs 2.5 million, the yield is immediately a bad return.
Now we are talking about Pattaya. But I predict, That the OG bubble will explode all over Thailand within 1-2 years. In Chiangmai too, people are building like crazy. So it's just waiting for the blow.