In the past few years, a substantial amount of new condos have been built in Pattaya, aimed primarily, it seems, at the Chinese, Asian, and Thai domestic market. The differences between new build projects and the older, more established buildings in the city are pronounced. They differ in design, facilities, marketing, and, crucially, the living area and price per square metre. It will be interesting to see how the older, more established units in Pattaya shape up against the polished new competition and what they can do to hold their place here in the future.
It points to a pronounced change in the demographic, how visitor numbers change, and where people are coming from have altered over recent years. In Pattaya, particularly in Jomtien and Pratumnak, the older buildings you see were built with the European visitor/long-term retiree in mind. Twenty years ago, the market was primarily for Europeans and Westerners. In recent years, Russian and Chinese visitors dominated the property market. The domestic tourist market, which is relatively new to the Pattaya property market, had little impact.
In the exclusive and well established Royal Cliff Garden, modern three bedrooms unit for sale with fantastic views
The demographic change in Thailand, the European, American and Australasian axis still contributed over nine million visitors to the Kingdom in 2019, the last year worth counting thanks to the pandemic. It is still a considerable contribution to the tourism industry due to the average spend of these visitors, both long and short term. Only East Asia and the ASEAN countries made a more significant contribution. The Chinese market dwarfed any other country’s numbers, and they made up nearly a quarter of everyone who came to Thailand that year. However, that should not detract from the fact that an awful lot of people will still find the older, more well-established projects with their bigger unit sizes are more attractive than some of the newer projects.
The older style units have both plus and minus points against them. On the plus side, the prices will compare very favourably with the new build units, both in the rental and sales markets. The older, more mature buyer will see this as a positive. The comparison between prices and unit sizes will not go unnoticed, especially by potential buyers who are thinking of retiring or spending several months of the year here in Thailand. On the minus side, the condition of these projects, maintenance issues, and resale problem in a highly competitive marketplace. Some of these older properties are in excellent condition, with a few developments renowned for size, price, location.
The difference in how the older developments are advertised will sharply contrast to the new build units. The vast majority of older units are in individual buyers’ hands and often advertised by agents on an individual basis rather than the massive marketing campaigns that the new projects will undertake. The sensible buyer will have to do some homework to find what is wanted, but they must have bargains amongst the older properties.
The domestic and Asian markets have different requirements altogether, and the developers who are building in Pattaya are well aware of it. There are now much shorter and more convenient flight times for overseas visitors and domestic holiday home buyers. It means that they and the buyers from Bangkok favour smaller, glitzier, units knowing they will be spending comparatively little time in them.
Great unit for a rental investment in Foreign Quota in the sought after Riviera Jomtien.
Also, many new buyers are looking to invest in property rather than reside; they are more concerned with short-term rental possibilities. One-bedroom units are the most popular size for this type of investor, and if you take a look at any of the new projects going up, you will see that the majority of what they offer are, in fact, one-bedroom condos.
If you’re only using it for a holiday home or a weekend getaway, that’s fine, but if you’re planning an extended stay through the winter or thinking of retirement, things may start to get a little claustrophobic after a while.
It will be interesting to see how the situation develops over time in Pattaya. As the world recovers from the current situation, the city will accommodate all types of visitors. There will undoubtedly be a mix of short term and long term Pattaya residents in the years to come. Those who want a bolt hole and pied a Terre where furnishings may be minimal, and just a suitcase is all that is needed. Then perhaps older residents or those with families who prefer larger rooms, multiple bedrooms, bathroom units and of course ample storage.
Whatever your property needs, the Pattaya Prestige Property team will help you find your ideal condo.