Pattaya Developers Advised to Proceed Cautiously Amid Potential Oversupply Concerns
While experiencing robust sales in the previous year, developers in Pattaya are being urged to exercise caution before unveiling new condominium projects to prevent oversaturation. Colliers Thailand, a property consultancy, forecasts a 50% surge in new condo launches in 2024, reaching 5,000 units, with Pattaya set to witness its highest level of launches, surpassing the 2023 record of 3,302 units by 123%.
Phattarachai Taweewong, Colliers’ Director of the Research Department, viewed this anticipated surge as a significant milestone over the past three years, marking a strong recovery from the challenges induced by the pandemic. Prime locations like Pattaya City, Wong Amat, and Jomtien are anticipated to maintain their strength, particularly with the introduction of upscale condo developments, further enhancing their market positions.
Colliers’ data revealed Jomtien as the primary location for new condo supply last year, accounting for 43% of the launches, followed by Phra Tamnak at 28% and Pattaya City at 16%. The market’s average take-up rate stood at 76%, with Pattaya City leading at 87%, leaving only 615 unsold units.
While Jomtien followed closely with a 79% take-up rate, Na Jomtien recorded 71% uptake. Notable interest from foreign buyers, particularly from China and Russia, was observed in 2023, with some making multiple purchases within single projects. Local demand also remained strong, with buyers expressing interest in projects by reputable developers as appealing investment prospects.
Despite the robust market performance, condo selling prices in Pattaya remained relatively stable due to a surplus of unsold units in completed projects, according to Colliers. In high-demand areas like Wong Amat, prices surged, reaching over 188,000 baht per square meter, while other beachfront locations commanded prices exceeding 135,000 baht per square meter.
Conversely, the Jomtien area, though popular, exhibited relatively lower average selling prices, attributed to the abundance of mid-range projects along Jomtien Sai 2 Road, where prices started below 60,000 baht per square meter. Nevertheless, beachfront projects in various locales maintained their premium status, with units fetching prices exceeding 120,000 baht per square meter.
