Pattaya condo market cools

Pattaya's condo market is expected to cool this year, despite a rising volume of supply.

10 condo projects were launched in the first half of 2015, according to Colliers International Thailand, with 5,280 units, down from the second half of 2014, with no signs of recovery. This is partly attributed to a fall in interest from overseas visitors.

"Foreign tourist arrivals have dropped, particularly Russians, who were the main condo buyers in Pattaya," Surachet Kongcheep, associate director of the consultancy, tells the Bangkok Post.

"TThis has caused a slowdown in the Pattaya condo market despite an increasing number of Chinese arrivals in the past two years, as Chinese are not major condo buyers."

With more projects due to be completed, oversupply is now a looming issue for the market.

Developers are also concerned that buyers are reluctant to have units transferred, "as many speculators and investors are in the Pattaya condo market, and Russians, the main buyers, have a weak currency," added Mr. Surachet.