Mr. Phanom Kanjanathiemthao, Managing Director, Knight Frank Thailand Co., Ltd., said that the condominium market in Pattaya has once again shown positive signals after continuous stagnancy for many quarters. From January to September 2018, there were around 4,800 new units launched, which marks over an 83% increase from 2017, or around 2,200 units. From studies conducted by the real estate research team of Knight Frank Thailand, it was found that over 3,100 units from the new supply in Pattaya from January to September 2018 was located in Jomtien; meanwhile, Central Pattaya and Na Jomtien were the second and third most popular areas with industry operators, with 13% and 9% of the new supply, respectively. Other areas such as South Pattaya and Pratamnuk had approximately 320 units of new supply or 13% of the entire new supply entering the market.
Pattaya Condominium Supply 2009 – Q3 2018
New Supply by Area Jan – Sep 2018
On demand front, it was found that average take up rate of newly launched units in the first 3 quarters of this year was around 62%. This represents a decrease from the same period in the previous year by around 12% due to the surge in supply entering the market. Foreign buyers largely included the Chinese and Russians. The areas that were most popular with both Thai and foreign buyers included Central Pattaya, South Pattaya, and Na Jomtien. On the whole, the average asking price for newly launched units from January to September 2018 stood at 118,510 baht per square metre. For luxury units, the average asking price was roughly 130,000 baht per square metre.
Cumulative Supply, Demand, and Take Up Rate of Pattaya Condominium 2009 – Q3 2018
Average Asking Prices of Pattaya Condominium 2009 – Q3 2018 (THB/sq.m.)
As for the state of the market in the remaining 3 months of the year, the supporting factor is anticipated to be purchasing power from foreign buyers with ongoing interest in Pattaya condominiums, especially Chinese, Russians and other Europeans. These buyers tend to buy properties for their own occupation or long-term capital appreciation. However, an important factor that could negatively affect the market next year is the Bank of Thailand’s Macroprudential Policy covering residential loans which is slated to take effect on April 1, 2019. it is expected that the policy could directly affect purchasing decision of some Thai buyers who wish to purchase real estate in Pattaya as their holiday homes or as an investment.