Pattaya property buyers and investors should obtained unbiased advice from reputable local real estate agents to avoid potential problems, according to new research from Colliers International Thailand.
In its Pattaya Residential Report, published yesterday, the real estate agency wrote: “There are warning signs that investors should consider if entering the market for the first time.
“In our opinion the sheer number of project launches is too great for the number of actual buyers and unless a project has something special to offer a client such as a unique location, the project could potentially suffer from delays or cancellation.”
The detailed report also highlighted the massive surge in interest from Thai property buyers in Pattaya.
Colliers wrote: “In contrast to the last few years when foreign buyers were the mainstay of the Pattaya and Jomtien property scene, we are seeing a remarkable entry into all segments of the market from Thai buyers.
“For many years, the majority of the foreign-owned local development companies struggled to sell their 51 percent Thai requirement. There is now a massive shift as we witness many Thai developers coming to Pattaya, who successfully sell well to the Thai market but do not come close to filling their foreign ownership quota. Some foreign-owned development companies are also finding it difficult to sell their Thai allocation through over-supply in a competitive market, as Thai buyers tend to have a loyalty towards brand name Thai developers.”
The report also noted that many Thai developers appear to be finding international sales difficult to attract in Pattaya, having rested on their reputation in Bangkok without a clear perception of how Pattaya and the foreign market works.
“For many foreign buyers, the big name Bangkok developers are unheard of and often their marketing is not even foreigner friendly. This is changing somewhat and many of the Thai developers are realising that to be a success in Pattaya they cannot rely solely on the local market and are attempting to address the situation, gradually.”