"More than 53 percent of condominiums built since 2008 remain unsold in Pattaya and industry and government officials have acknowledged that the market has stalled and prices are now falling.
At a May 29 real estate seminar titled “Real Estate Investment Opportunities in Chonburi-Rayong”, Chonburi Gov. Senee Jittakasem said plunging exports and tourist numbers have knocked the property market into the doldrums and, especially in the Pattaya area, have sent prices tumbling.
Sopon Pornchokchai, board president for the Agency for Real Estate Affairs’ Research and Information Center, said 42 new “weekend condominium” projects were started during 2008-2009 with 4,443 units put on the market. As of January, 53 percent, or 2,355 condos, remained unsold. In all of Chonburi and Rayong, Sopon said, 426 projects with 55,426 units were built but 63 percent – 35,390 units – remained unsold. . .
At the same time, Sopon added, the sharp drop in tourism to Pattaya has hit the real estate sector hard in the seaside city. “To solve this (real estate) problem, we must understand the economic problem,” said Jate Sopitpongsathorn, managing director for developer Horseshoe Point Co. Ltd., at the seminar. “It’s affecting the entire world and we must cooperate to find a solution in order for all businesses to survive.”
http://www.pattayamail.com/current/property.shtml
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Pattaya condo glut; 53% of inventory unsold
Started by TheYenta, Jun 23 2009 08:17 PM
2 replies to this topic
#2
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Posted 25 June 2009 - 10:57 AM
Does anyone know what effect this glut of new condos is having on the price of condos that were built a few years ago ? I don;t know much about real estate in Thailand but it seems to me that a glut of new units would have a serious impact on the prices of older units that are unable to provide the modern look of new construction. For example, has there been a greater decline in the price of units in View Talay One, as opposed to View Talay units built within the last two years ?
#3
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Posted 26 June 2009 - 12:00 PM
My experience is that you still have to do a lot of work looking to find the condo bargains in a down market. The rich Chinese tend to sit on their properties and wait out the market. The secret is to find someone who was leveraged too much and needs to sell to generate cash or an expat who is moving somewhere else and has to sell to cash out. It takes leg work, but it can be rewarding if you find the right seller in distress who's willing to discount now for quick cash.
