All over the web, I see comments and complaints about the number of condos that have been built in Pattaya and how many are ‘empty’. Unless you bought a unit from the developer’s price list, I’m unsure as to whats to complain about!
The completion of a significant number of developments over the last year or two (15,000 units ?) has led to price pressure on both rentals and the purchase price of some condominiums.
So who benefits from “lights out” and overdevelopment?
Firstly the developers who have sold these projects to ‘investors”.
What generally not understood is that the developer is a sales and marketing company. They create the condo concept and buzz, they motivate real estate agents to promote the development and they outsource the actual construction. after completion, they then pass the management on to a Juristic such a QPM. so they make money by the creation of the condo and its sale. This is why you will continue to see new developments going up from the same developers.
Secondly the Real Estate investor
Buy buying established units at “fire sale” prices it’s possible to build a portfolio yielding 6.5% or more. In some cases resell and make a margin in the process.
Lastly The renter or long term buyer
It’s now possible to buy property at much lower prices than in the past especially if you are happy to live away from the center of Pattaya.
For those looking to rent or move to a different condominium, this is good news. Indeed if your contract is getting towards the end you should consider renegotiating. Especially as many of the new condos provide far superior facilities at a lower rent.