Jump to content

Pattaya condo market shrinks 60 percent in first half


webfact

Recommended Posts

Does the possibility that there is limited space to build more in Pattaya proper not self-limit new construction?

Go to the top of any high-rise building in Pattaya and look out. There is masses of undeveloped or underdeveloped land, even right on Beach Road.

Certainly in Jomtien there is many times more empty land than in Pattaya.

There is a single block of empty land on Beach Rd that has been there for 20+ years yes, but free space in the Beach Rd, Sukhumvit, Nua, Tai rectangle is becoming scarce. It just seemed obvious that at some point all the easy to acquire, empty and easy to build lots would become limited and hence new construction roll off. There are also smaller condos being built, below 40 sqm. And at 62,000 baht/sqm, and increasing annual service charges not everyone can afford a condo.

KK is quite right. Besides, a space doesn't even have to be currently unoccupied: developers will simply replace the existing structure.

Link to comment
Share on other sites

Go to the top of any high-rise building in Pattaya and look out. There is masses of undeveloped or underdeveloped land, even right on Beach Road.

Certainly in Jomtien there is many times more empty land than in Pattaya.

There is a single block of empty land on Beach Rd that has been there for 20+ years yes, but free space in the Beach Rd, Sukhumvit, Nua, Tai rectangle is becoming scarce. It just seemed obvious that at some point all the easy to acquire, empty and easy to build lots would become limited and hence new construction roll off. There are also smaller condos being built, below 40 sqm. And at 62,000 baht/sqm, and increasing annual service charges not everyone can afford a condo.

KK is quite right. Besides, a space doesn't even have to be currently unoccupied: developers will simply replace the existing structure.

With the people in them!

Link to comment
Share on other sites

i was interested in some Jomtien properties early 1998 but did not buy because foreign condo ownership was not yet implemented.

The foreign condo ownership for condos was implemented in 1991

By way of background, the law governing condominiums was enacted as Condominium Act, B.E. 2522 (1979). This law was liberalized to allow foreign investment in condominiums by Condominium Act (No. 2), B.E. 2534 (1991), which allowed foreign persons and entities to own condominium units on a freehold basis, but limited foreign ownership to 40% of the total area of the units of the condominium.

http://www.thailawforum.com/database1/Buying-Condominium.html

Link to comment
Share on other sites

And yet, they keep on building like there is no tomorrow and that the whole of Russia,

China and other countries will be buying condos there, I foresee a super humongous

slump in the very near future in Pattaya RE, the smallest problem/scare there will

the RE market tumbling down like a bolder of a mountain...

i foresee to see postings like yours for years to come as i saw them for the last eight years. not limited to Pattaya real estate but also the Thai economy as well as the Baht falling into an abyss "like a boulder off a mountain".

keep up the good job amusing me wai2.gif

I remember a Klingon on the SpainVisa forum making similar comments. He disappeared from that forum anno 2008.

Rumors are that he is now active in Thailand biggrin.png

  • Like 1
Link to comment
Share on other sites

There are some markets catering for a rouble income, Jom Tien beach being a prime example. I saw a lovely circular beach in Hainan, China last month, now totally surrounded by high rise apartments, menus in the sea food restaurants in Chinese and Russian. One fish with veg around $60.00, one icecream 100rmb (600baht).

I suspect with the fall of the rouble, a few apartments in a number of countries are going to remain empty, either rented or purchased.

Maybe even the song teaw drivers in Chiang Mai will stop trying to charge farangs 40baht to go a few streets. whistling.gif

Link to comment
Share on other sites

I recently heard of one condo building that was putting up 2Bedroom, 2 Bathroom units for 6 million Baht in an astounding area of 50 sq, mtrs ! Who would want to live in that, I ask myself ? You would have to exchange the proverbial swinging cat for a swinging gerbil smile.png

i'd feel lost in a huge unit of 50m².

attachicon.gifL-dog.jpg

My lounge is bigger than that.

  • Like 1
Link to comment
Share on other sites

And yet, they keep on building like there is no tomorrow and that the whole of Russia,

China and other countries will be buying condos there, I foresee a super humongous

slump in the very near future in Pattaya RE, the smallest problem/scare there will

the RE market tumbling down like a bolder of a mountain...

i foresee to see postings like yours for years to come as i saw them for the last eight years. not limited to Pattaya real estate but also the Thai economy as well as the Baht falling into an abyss "like a boulder off a mountain".

keep up the good job amusing me wai2.gif

I remember a Klingon on the SpainVisa forum making similar comments. He disappeared from that forum anno 2008.

Rumors are that he is now active in Thailand biggrin.png

fact, not rumour, is "this" Klingon is active in Thailand since january 2005 and active in Thaivisa forum since september 2006.

  • Like 1
Link to comment
Share on other sites

i was interested in some Jomtien properties early 1998 but did not buy because foreign condo ownership was not yet implemented.

The foreign condo ownership for condos was implemented in 1991

By way of background, the law governing condominiums was enacted as Condominium Act, B.E. 2522 (1979). This law was liberalized to allow foreign investment in condominiums by Condominium Act (No. 2), B.E. 2534 (1991), which allowed foreign persons and entities to own condominium units on a freehold basis, but limited foreign ownership to 40% of the total area of the units of the condominium.

http://www.thailawforum.com/database1/Buying-Condominium.html

i couldn't care less when exactly it was implemented. in 1998 i was told "you need to establish a company!" for any of the properties i was interested.

Link to comment
Share on other sites

I recently heard of one condo building that was putting up 2Bedroom, 2 Bathroom units for 6 million Baht in an astounding area of 50 sq, mtrs ! Who would want to live in that, I ask myself ? You would have to exchange the proverbial swinging cat for a swinging gerbil smile.png

i'd feel lost in a huge unit of 50m².

attachicon.gifL-dog.jpg

My lounge is bigger than that.

Our bedroom is almost that size ,much less out loungebiggrin.png

Link to comment
Share on other sites

And yet, they keep on building like there is no tomorrow and that the whole of Russia,

China and other countries will be buying condos there, I foresee a super humongous

slump in the very near future in Pattaya RE, the smallest problem/scare there will

the RE market tumbling down like a bolder of a mountain...

i foresee to see postings like yours for years to come as i saw them for the last eight years. not limited to Pattaya real estate but also the Thai economy as well as the Baht falling into an abyss "like a boulder off a mountain".

keep up the good job amusing me wai2.gif

I remember a Klingon on the SpainVisa forum making similar comments. He disappeared from that forum anno 2008.

Rumors are that he is now active in Thailand biggrin.png

fact, not rumour, is "this" Klingon is active in Thailand since january 2005 and active in Thaivisa forum since september 2006.

He seems to have been around as long as me and that was back in 2003. I liked him then too.

Link to comment
Share on other sites

And yet, they keep on building like there is no tomorrow and that the whole of Russia,

China and other countries will be buying condos there, I foresee a super humongous

slump in the very near future in Pattaya RE, the smallest problem/scare there will

the RE market tumbling down like a bolder of a mountain...

I remember a Klingon on the SpainVisa forum making similar comments. He disappeared from that forum anno 2008.

Rumors are that he is now active in Thailand biggrin.png

fact, not rumour, is "this" Klingon is active in Thailand since january 2005 and active in Thaivisa forum since september 2006.

He seems to have been around as long as me and that was back in 2003. I liked him then too.

the first time i visited Pattaya was nearly 41 years ago. and before i settled down nearly 10 years ago the times my wife and me spend every year some holidays here. so i am well aware what happened and what did not happen during these last four decades.

Link to comment
Share on other sites

  • 3 months later...

Yesterday I was told the Chinese have stepped in to effectively rescue the pattaya condo market and while developers are now conceding they have very few Russian buyers, they are now managing to sell new condo’s in volume to Chinese buyers who seemed to have miraculously appeared as buyers.

I was a bit sceptical of this claim for many reasons……….. But I could be wrong

Edited by Asiantravel
  • Like 1
Link to comment
Share on other sites

<script type='text/javascript'>window.mod_pagespeed_start = Number(new Date());</script>

This ponzi/condo train is going over a cliff.because developers cannot stop and have not limited development in accord with world and local economy. Enter the black swan.

There is a confluence of independent events in play here Russians stop buying at the bottom of the pyramid.

Household debt for Thais is out of control..Gross over supply,.Speculators cannot pay back loans because they cannot sell. This will create a cascade of sellers.

The downward vortex is underway. This house of cards can no longer defy the laws of supply and demand.

Is it really because of political turmoil ????? Or maybe people really got bored with pattaya ..

This statement would suggest actual purchases are on the increase.

Surachet said the average take-up rate in the condominium market in Pattaya was still similar to the past few years.

He said the figure at the end of the first half of 2014 was approximately 73 per cent, a little higher than the previous six months.

It is just the number of units launched that has decreased, but who knows for sure? it's all smoke and mirrors when it comes to condos in Pattaya and Jomtien.

I beg to differ that a take up rate of 73% on 3800 units isn't same as a slightly lower take up rate on more than 8000 units.

Link to comment
Share on other sites

I was in the MegaBangNa mall in Bangkok yesterday and was assailed by a nice person of the third gender who tried unsuccessfully to show me how her condos ( Jomtien somewhere) were such a great investment, that I needed to get on the bandwagon as soon as possible, that there was no better value for money in Thailand.

I asked her a few questions such as, " how far from the beach?" Not sure.

When the completion date? Not sure

Started building yet? Not sure but have permit

What % foreigner allocation? 100% farang, sure.

How many empty condos in the area and how many Russians cancelling? Totally surprised that I could ask such a thing.

In the end, she was glad to see the back of me.

I have stayed here over 10 years and was scammed by a developer. But I thought a higher calibre of salesperson would be employed.

Link to comment
Share on other sites

  • 1 month later...

There has been much speculation that Chinese investors and buyers will replace the numerous Russian buyers that are no longer participants.
When I read this article today my thoughts were surely Chinese are not going to feel terribly bullish about the Thai property market when they see their own homes back in China declining in value?

China new home prices drop at record pace

http://www.cnbc.com/id/102429356

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • Recently Browsing   0 members

    • No registered users viewing this page.









  • Topics

  • Latest posts...

    1. 6,330

      Australian Aged Pension

    2. 3

      Thailand Live Friday 20 September 2024

    3. 3,396

      President Kamala Harris

    4. 111

      Pager Explosions in Lebanon Target Hezbollah Members 9 Dead Thousands Injured

    5. 58

      PM Faces Pressure Over Thaksin's Alleged Hospital Fake-Out

    6. 1

      Thailand Introduces New Bill to Regulate Cannabis While Keeping It Legal

    7. 1

      Thailand Introduces New Bill to Regulate Cannabis While Keeping It Legal

    8. 29

      A full medical check up in the Bangkok area?

    9. 0

      Israeli Citizen Arrested Over Alleged Iranian Plot to Assassinate Netanyahu

    10. 0

      Mohamed Al Fayed Accused of Systematic Sexual Abuse: Harrods’ Dark History

    11. 0

      Israel Shifts Focus to Northern Front as Walkie-Talkie Bombs Signal New War Phase

    12. 0

      Teamsters’ Neutral Stance: A Blow to Harris and a Challenge for Trump

×
×
  • Create New...
""