Despite strong sales last year, Pattaya developers need to exercise caution before launching new condos to avoid an oversupply, as new launches in the market are projected to grow 50% to 5,000 units in 2024, according to property consultant Colliers Thailand.
Phattarachai Taweewong, director of the research department at Colliers, said the anticipated amount would represent a peak for condo launches in Pattaya, exceeding the record of 3,302 units last year, up 123% from 2022.
"This milestone represents the highest figure recorded in the past three years, underscoring a notable rebound following the challenges posed by the pandemic," he said.
Mr Phattarachai said locations including Pattaya City, Wong Amat and Jomtien will continue to be robust, with the launch of luxury condo projects expected to bolster their prominence in the market.
According to Colliers, the most popular location for new condo supply launched last year was in Jomtien, which accounted for 43%, followed by Phra Tamnak (28%) and Pattaya City (16%).
The average take-up rate for this market was 76%, with Pattaya City posting the highest rate of 87%, with only 615 units of inventory remaining unsold.
Jomtien was second with a take-up rate of 79%, while Na Jomtien was at 71%.
Pattaya as viewed from Phra Tamnak hill. (Photo: Pattanapong Hirunard)
"Foreign buyers, particularly from China and Russia, experienced a resurgence in 2023, with some purchasers acquiring multiple units within a single project," he said. "Local demand remained robust, with buyers showing keen interest in projects by reputable developers, viewing them as promising investment opportunities."
The average selling prices of condos in Pattaya remained relatively stable because of a large number of unsold units at completed projects, noted Colliers.
In sought-after areas such as Wong Amat, prices soared, with some projects fetching upwards of 188,000 baht per square metre.
Other beachfront locations also had substantial price tags, exceeding 135,000 baht per sq m.
Conversely, the Jomtien area, while still desirable, experienced comparatively lower average selling prices, noted the consultancy, attributed to the abundance of mid-level projects along Jomtien Sai 2 Road, where prices started at less than 60,000 baht per sq m.
However, beachfront projects in various locations retained their premium status, with units selling for more than 120,000 baht per sq m.