Everybody that has bought property in Thailand know that there is a huge oversupply in condos and that it’s hard selling a property these day’s. We have been working in the Pattaya condo market now for over 10 years and always noticed ups and downs but never like this. When the European left the Russians came to buy properties in Pattaya.
2015 the change
However in 2015 the market shifted to a different direction. Sinds then many Chinese have been entering the market here in Pattaya and started to purchase properties all around.
Foreign buyers decrease
Foreign buyers from Europe, Russia and Australia started to decrease and there is an oversupply of condominiums in the Pattaya area. Every project that is completed or under construction has many resale units available. Prices have started to decrease, developers drop the price and previous buyers have to sell with a loss. Most of these owners do not accept this and still try to sell at a high price, however it does not work this way in the real estate market. They will realize soon that their property is not selling and would have to lower their price in order sell.
The Thai Baht
Now that the Thai Baht is so strong makes it even more difficult to sell a property in Thailand. Pensioners and people with an income from abroad start to flee Thailand and flocking to Vietnam, Cambodia and Philippines as they can enjoy a better lifestyle. Many real estate agencies and property developer decline that there is an oversupply and try to sell their property with shady guaranteed return on investment schemes. This is done by putting a higher price than market value on the property and repay the guaranteed returns from the amount the buyer has paid to them.
Investment or loss
When your looking for an investment Pattaya is not the place, however if you purchase a second hand unit below market value you still can make some profit in the future or just use it yourself for a couple of years.
Real estate investments are a long term commitment, this can be from 5 to 10 years depending on the current economic of the country and area you invest. If your interested to buy or sell a condo do not hesitate to contact us.