The Thailand economy has shown good results in the last two and a half years, after its flood tragedy and different political upheavals. After attaining political stability, the Tourism and IT sectors have been the main areas which have brought back the Thai economy on its track.

In the last one and a half year, a lot of overseas investment had been pumped into the commercial and residential real estate market of Thailand, with the major contribution in cities like Bangkok, Pattaya, Jomtien, Wongamat, etc.

Why the Pattaya Real Estate Market better than the Bangkok?

In this article, we will quickly take a look into, why in present scenario Pattaya is a better option for real estate investment (especially in condo properties) than into the Bangkok real estate market.

Pattaya Realty Market

Currently, many of the condominiums (condo) for sale in Pattaya are affordable re-sale units, under the developer's price tags and current market value. Oftenly, these units have been sold at much lower rates than the developer can offer directly in a new project of a condo in Pattaya. On an average, it is seen that the per square foot rates on Pattaya condos are much cheaper than in Bangkok. Recently, there has been an influx of discounted apartments and cheap condominiums for sale in the Pattaya real estate market.

Why are Pattaya condos cheaper compared to property in Bangkok?

There have been some important key factors for this, such as - a fragile global economy, low foreign exchange rates, the growing strength of Thai Baht and an excess availability of condominiums in surrounding suburbs.

A large number of Russian expats had owned condos in Thailand, majorly in Pattaya city. The collapse of the Russian Ruble was the beginning of the so-called bonanza of the cheap fire sale of condos, where you can buy a resale condominium in the Pattaya under the real estate property developer's rates for the first time. This was possible because the Russian currency is reduced to the half the previous value and therefore they (Russian condo owners) nearly doubled the value of their condos, that allows them to sell cheaply and convert the strong Thai Baht back to the Ruble, thus earning a profit and making money back to the exchange rate. In fact, it makes more sense for them to sell now than to wait for the real estate market in Pattaya to recover.

Another mitigating factor, which as a general rule in any form of business economics, comes down to – ‘supply and demand rule’ and when supply exceeds demand, prices of the product fall. This will determine the current market value and the price what you will eventually pay to the supplier. For example, an over supply of condominiums for sale in Pattaya means more apartments in the market. There will be more competition between the owners, to sell or rent, combining this with the present uncertainty of the global economy, which leads to fewer people in the buying process. This ultimately pushes the owners in dropping its price tags to get the sale done.

Over the past two years, since the start of the Russian Ruble collapse in mid-2014, Pattaya sees a cheap real estate sale and the people who are with cash, earned a fantastic opportunity to take the maximum advantage of the situation with very discounted properties. In some cases, investors are able to purchase a new condo in Pattaya for almost half the original market value.

With the pristine beauty of the city’s beaches, better infrastructure, growing hospitality & education sector, expanding transportation facilities and low cost living. Pattaya is attracting many overseas and local investors in its real estate property market.

Why don’t we see a similar scenario in the Bangkok Real Estate Market?

Most of the real estate in Bangkok is owned by wealthy Thai citizens and they are in no hurry to sell for a loss! Many Thai people purchase property in Bangkok for rent and have a long term investment strategy while comparing to Pattaya most of the cheap apartments for sale are foreign national owned - holiday homes. This is because the main destination in Thailand for foreign tourists was Pattaya and other sea-side holiday resorts where currency fluctuations play an important role in accepting a low/ cheap offer by a foreigner.

So how long do we think these heavily reduced condominiums in Pattaya will last? Although there is no immediate sign of a recovery or overnight monetary solution for the global financial markets, but we are already beginning to see a drop in the sale of these cheap condominiums at low prices due to the fact that Russian buyers have bought in many units.

If you compare condo prices with homes for sale in Pattaya, you will not see the same picture you make with the Pattaya condos because most of the foreign real estate investment in Pattaya was directed to low-lying condos near the beach and complex holiday style resorts.

Conclusion

So the best advice we can offer is, if you are looking to buy a property in Pattaya city, be prepared to do your due diligence. Take efforts to hire a trusted real estate consultant, look for a well-built condominium development projects, like Amigo Grandeur Condominium, which is having all local amenities and is close to shopping and recreational areas, beaches, etc.

Location of any Condo definitely plays an important role in any real estate market, central city locations have often increased demand in the area and require higher prices due to limited availability. We have seen many condominiums for sale in central Pattaya retain their value and, if anything, prices have steadily increased, this is also true with seafront properties, unique apartments overlooking the sea and new luxury condominium projects developed by market-trusted builders and developers.