Pattaya condo market shrinks 60 percent in first half

[JSixpack]

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.

[JSixpack]

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

...or is it due to the type of people attracted there?

It's attracting too many grannies. What a turnoff.

[jacko45k]

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!

[dBrown]

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

[dBrown]

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

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

[masuk]

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.

[billd766]

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

i'd feel lost in a huge unit of 50m².

L-dog.jpg

My lounge is bigger than that.

[Naam]

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

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

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

[Naam]

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.

[i claudius]

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

i'd feel lost in a huge unit of 50m².

L-dog.jpg

My lounge is bigger than that.

Our bedroom is almost that size ,much less out lounge

[i claudius]

My dads is bigger than your dad's so there!

[petercool]

Post removed for vulgarity. Come on guys, you know the rules .......

[billd766]

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

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

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.

[Naam]

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

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.

[Asiantravel]

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 December 18, 2014 by Asiantravel

[i claudius]

My wife is in the buisness ,to be honest i have never come across a Chinese buyer

[Anthony5]

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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.

[Asiantravel]

My wife is in the buisness ,to be honest i have never come across a Chinese buyer

hmmmm………… Claudius. Now that's interesting!

Maybe my scepticism was correct

[Robroona]

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.

[Asiantravel]

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

[OZEMADE]

So they are still building condos they cant sell, the Thais that bought a second one to invest in want to now sell as they cant rent them out, the Russians are no longer buying and the ones that did buy and were paying off, can no longer afford to make the payments, so they are all coming back on the market. All the other people that did buy for an investment and were guaranteed a return for rent, now find they cant get any one to rent the place. All overseas cash is crashing due to their economies, which in turn stops them from visiting and purchasing. A lot of Xpats are returning back to their country's of origin as they cant afford to have cash transferred and converted any more, their cost of living has gone up to the cash conversion they now get. A lot of Thais that bought during and after the floods in Bangkok, are the only ones that enjoy Pattaya away from Bangkok, as can be now seen by the traffic jams on Friday coming into Pattaya and Sunday leaving for Bangkok, what a mess.

If you have the cash and want to buy a good condo with great views, wait a bit longer and you can have your pick. The bubble has just about burst.