Residential property prices in Pattaya (Thailand) fell to 50%
April 3, 2020
Pattaya is a tourist city in Thailand on the seashore. It gained special fame for its adult entertainment, but we love this city not only for this.
Pattaya real estate is popular both among those wishing to live in this city, and among investors: look at the Housing Index in Thailand:
If we talk about Pattaya (and not about Thailand as a whole), then the level of demand among foreigners affects the price. Until 2014 (when the economic crisis in the Russian Federation began), residential real estate was popular among Russians. The Russians were replaced by the Chinese and, until recently, they provided increased demand for apartments in Pattaya.
But coronavirus (COVID-2019) began its effect on China in late 2019 and early 2020 and by March 2020 had an extremely negative impact on the price of apartments in Pattaya. The Chinese refuse to buy apartments already reserved, and also do not conclude new housing contracts.
Result: the price of some objects fell to 50%. Luxury apartments for more than two million baht can now be bought for a million baht and sometimes even for 800 thousand baht.
It takes time to understand whether such a fall will affect only some new buildings or spread to the entire Pattaya housing market. The further change in the price of real estate will depend on the duration of the COVID-2019 pandemic and the speed of economic recovery in countries, primarily China.
And at the moment this is a good time to invest. Adjusted for the fact that at the time of writing, entry to Thailand is completely closed as measures to prevent the spread of coronavirus (lockdown).
The risks of buying property in Thailand
The most important thing to remember when buying an apartment in Thailand, especially if you plan to live in it, is that ownership of residential real estate does not give any priorities in the visa issue, and Thailand is a fairly strict country in terms of issuing visas for long-term residence.
If you buy an apartment as an investment, then in your favor fact that Thai Baht is very stable against the dollar currency. Risk factors: the residential real estate market in the resort city, as in all similar cities, is overheated, although quite moderately – there is potential for growth. The second risk factor: dependence on the tourism industry, which is affected by visa/immigration policies (hardened in recent years) and the welfare of the countries from which tourists come.
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