Pattaya’s property market had been in doldrums to some extent for several years until the city opened itself up to the Chinese market. While Chinese investors are buying property across Thailand, Pattaya is one of the main areas that has witnessed a significant shift. The main focus is in mid to high-end condos in Pattaya, although cheaper holds considerable appeal, with little interest shown in houses.
Tighter Restriction on Property Investment in China
One of the reasons why the Pattaya condo market may be so appealing is due to the tighter domestic restrictions on investment properties in China. Also, the high prices per square metre represent a significant risk for investors which can harm ROIs. It has resulted in investors seeking to purchase property elsewhere with the Thai market construed as offering excellent value for money, even in spite of a relatively weak Yuan.
In addition to perceived good value for money, the fact that freehold condos can be purchased has an obvious appeal – not something which is unique to Chinese investors. Also, taxes and fees are relatively inexpensive when compared with alternative locations, and most condos include excellent facilities such as swimming pools, gyms and saunas. There is an idea that having communal facilities represents wealth and luxury, although other nationalities may take these things for granted.
With investors keen to invest overseas, the fact that Thailand, unlike some other countries, is a Chinese-friendly country and actively welcomes and seeks Chinese investors. Investing in a country where there are obvious financial attractions as well as favourable local attitudes will naturally breed confidence.
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For most investors, geographic location is essential, and with Thailand’s proximity to China, there is an undeniable attraction. Closer countries, Laos, Cambodia and Vietnam, for example, lack the infrastructure as well as the established tourist market. While the potential returns may be higher, these alternative markets represent a considerable risk.
Bangkok is the World’s #1 Tourist Destination According to Mastercard
Bangkok consistently comes top of Mastercard’s Global Destination Cities Index, which is a huge attraction for any investor. However, with property prices in Bangkok’s central areas such as Sukhumvit and Silom being extortionate, Chinese investors see Pattaya as an attractive alternative. The road network between Bangkok and Pattaya is excellent, and the city is within easy travelling distance of both Suvarnabhumi and U-Tapao airports giving represent some significant practical benefits.
Targeting the Rental Market
The primary focus for Chinese investors is the rental market which is why mid-range condos in Pattaya are purchased. Middle income Chinese are drawn to these properties, especially in areas where Chinese tour groups frequently visit. The chances of higher occupancy rates and therefore, better ROI make these properties particularly enticing. Once again, it is Pattaya’s established tourist industry that makes the city a stand out choice.
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Chinese State Investment in Thailand
The Chinese government are investing significant sums of money in Thailand with the high-speed rail network being the most notable example. The rail link will connect Pattaya with all three major airports, Don Muang, Suvarnabhumi and U-Tapao making Pattaya the perfect destination. The fact that China is investing so much money in Thailand shows confidence, and this is something that will have been recognised by Chinese investors.
Pattaya condos for sale are viewed as a safe investment and are likely to generate very reasonable returns for Chinese investors. There is a consensus that Pattaya’s developers understand the market and what is required, which fuels the optimism and confidence.