Pattaya is one of the successful cities in Thailand nowadays. Located on the eastern coast, Pattaya is gifted with an amazing nature making it one of the best tourist spots in Asia, and with this comes lots of opportunities for growth, development, and favorable investments especially in the real estate market.
With continuous success, Pattaya just like other cities in the world faces various issues concerning its economy and the investment conditions even in the industry of real estate. What’s the real catch in this city?
Assured Number of Homes is Secured
According to WWW.THAILANDFLAT.COM/CITY/phuket/, as of February, there is already 40, 000 expat in Pattaya, and it is expected to continuously gain more. This opportunity is great for this city because of the following:
– Its developed infrastructures like a cosmopolitan resort, retail centers, and even transportation system.
– Its close proximity Bangkok, a highly urbanized center in Thailand also known for its tourist destinations and other popular spots in Thailand.
Another factor of Pattaya’s booming real estate market is the Eastern Economic Corridor (EEC), a series of investments in the city that intends to make the Gulf of Thailand a center in technological manufacturing and services. Also, it aims to build a stronger connection to ASEAN countries in every way possible. Because of this, employment and more opportunities arise which paved the way to more demands on residential areas.
Despite the declined number of Russian investors from 2014 to 2015, the Chinese business individuals took their place as one of the top desired cities since 2015. Fortunately, the number of Russian investors arose again in 2016 and even purchased more property units. In the present, they are one of the investors that are engaged in the buy-to-rent industry.
However, some reports revealed that there will be an oversupply of condominium units. Last 2018, there was a reported 88,330 units of condos, and 12,000 units are waiting to be sold despite the 80 percent rate of relatively high take-up. Because of this, both the buyers and their developers became less confident in the real estate investment. Moreover, other condominium issues like the maintenance in the drainage system, along with attractive features and amenities while remaining the affordability for its buyers.
The Continuous Rise of Property Appreciation and Property Prices
Back in 2016, the average rate of properties is THB 82, 500. In the present, the properties have typical prices amounting to THB 100,000 or more. Another determining factor in the higher price is the properties’ location-the nearer to the beach, the more expensive. For instance, units in Wongamat locating in a beachfront amount to THB 150,000 per square meter.
Despite this issue, Pattaya continues to become one with the most diverse properties which makes it suitable to both low and high-end markets.
Despite these along with other bad reports, Pattaya will remain its state and will not yet have a major slump. However, caution must always be considered especially in the real estate venture and not be contented on the delight brought especially by the foreign investors.