Pattaya Property – Good time to buy?
For around a year and a half, the Pattaya property market has bumped along with an element of uncertainty whilst investors, developers and agents alike ponder over their next move. Fair to say that, at the time of writing this article in late July, much of the uncertainty seems to be diminishing as the market continues its slow yet significant recovery.
There have been a number of factors that have affected the confidence of the local property buyer, the main one being the political situation here in Thailand and “the fear of the unknown” as one political commentator recently described it. However, as time rolls on, most observers have begun to realize that the military government has done and continues to do a pretty good job in improving many of the things that were wrong with our beloved land of smiles.
Historically, property markets in most countries go in cycles with rises and falls at certain times usually being fairly predictable. In some countries, however, the rises and falls can be more dramatic, even volatile, with rapid gains and often equally rapid falls when “the bubble bursts” and things get back to what are usually more realistic values. The USA, Spain and Ireland are good recent examples of this phenomenon.
Thailand, and in particular Pattaya, is somewhat different. Gains in property values are usually fairly gradual and falls even more so, although there have been situations in history where due to extreme circumstances, falls have been dramatic. These are very rare and are usually caused by political unrest, but those that predicted a bubble burst following last year’s military coup, have been proved wrong as it simply didn’t happen and is now unlikely to do so.
We are not talking about the seller who, through personal circumstances, needs to sell quickly and offers a “Fire Sale” as this is nothing to do with the strength or weakness of the market. We have seen many fire sales over the last year or so, mainly offered by Russian owners due to the collapse of their currency. Yes, it does affect the market to a certain extent but this is relatively short term and is not really a true reflection on the general confidence of the market.
There has been a drop in the number of buyers during the last year or so for a number of reasons, the main ones being the political uncertainty here in Thailand and the general world economy. However, prices have remained fairly static with little movement up or down with the exception of those fire sales as mentioned above.
So what about the future? Well, when you look at the enormous spend in the improvements being made to the general infrastructure here with regards to roads, power and water supplies etc, it gives a lot of confidence that our City has a great future. This, and the continuation of some of the big property developers who are still investing huge sums in a variety of different hotel and condo projects, entertainment venues, shopping malls and hospitals, our minds should be put at rest that Pattaya is most definitely “on the up!”
It’s likely to remain a buyers’ market here for a few more months both for resale properties and also the many new projects where the developers are offering attractive promotions with good discounts and favourable payment terms. So, in answer to the question of whether or not it’s a good time to buy, it’s a definite “Yes” with most currencies fairly strong against the baht and the likelihood that prices will start to rise again in the relatively near future.
The above article was written by Steve Seaman of Pattaya Homes and Condos based on Main Street, Cosy Beach, Pratumnak. Steve can be contacted on 082 659 4308 for free advice and guidance on any property related matters.