2018 was yet another busy year for the construction industry here in Pattaya after a further 10,239 condominium units were launched the total value of which landed at 55 billion Thai Baht.
This number of new units was a dramatic increase from 2017 which saw only 2,192 units built.
Speaking about the new data to the media the senior manager of Collier’s research department, Phattarachai Taweewong said that alarmingly a large portion of the units remain empty and unsold as a result of the massive number of new units which flooded the market in 2018.
Data collected by the research department showed that the number of new units built in Pattaya should not surpass 5,000 units as currently over 12,000 units remain unsold, this is the highest number of empty vacant units since 2015.
Phattarachai remarked that the condominium market has slowed over the course of recent years since 2015, before this the market had been buoyant with an average of 15,000 units selling per year thanks to oversupply being low and investor confidence in the city increasing.
According to Phattarachai developers here in Pattaya need to exercise caution as the main market for people purchasing units are investors with the goal of receiving a regular monthly return by renting out the unit to a tenant rather than living in the unit, in most cases anyway.
Phattarachai attributed the marked rise in the number of new units last year to the governments Eastern Economic Corridor project which has seen massive investment in infrastructure in Pattaya and surrounding areas.
According to reports Thailand as a whole currently has some 454,814 residential units left unsold, the combined total of these units were valued at $41 billion US.
With the sheer number of vacant units on the market and prices in general are lower than ever, perhaps for those still currently renting now might be the time to try and snap up a bargain.
What are your thoughts, let us know.