Is ‘Now’ the Best Time to Invest?
Ok, so everyone is saying the property bubble has burst and to be honest it looks like they are right, the local developers and real estate agents are certainly feeling the pinch. There have been a few projects cancelled before they started construction, lots of developments that are under way are severely delayed, on top of that there have been numerous real estate agencies closing down.
As history shows us, a down turn in any economical situation results in opportunities for the rich to get richer, right now what we are seeing in Pattaya are condos available for 30% – 40% less then they were 18 months ago.
SO IS NOW THE TIME TO BUY????
I think so, but I think you need to be selective. Supply and demand governs the price of everything in life and always has done, the reason we are seeing condos coming on the market at prices a lot lower than before is simply because there are too many condos in Pattaya, some say it is because of the collapse of the Ruble, I agree that has had an effect but I think that only accelerated what was always going to happen. Pattaya in the long term will always grow, right now though we just need to grow into the city that we have built, I have no doubt that in a few years property prices will again be on the up and the people who have brought now will make profits, maybe sooner if the Chinese invade as it looks like they are.
If you need an instant return on your investment I believe the best option in town is New Nordic Groups Investments.
For more information on this investment opportunity please visit www.newnordic.emergingtrendsinvestments.com
If though you are not reliant on getting an instant return now might be the perfect time to invest in properties with the main aim of making your profit on the long term, by waiting for the value to increase. You can still rent these units out but with the current market I think you should realistically be looking to achieve around 5% Net per year at most.
So going back to supply and demand, if you have a look at the condos that have flooded onto the market in the last few years you will notice that 80% of them seem to be 36sqm 1 bedroom units, if they are not they are even smaller studios or again small 2 bedrooms, the focus like in most new construction the world over is on cramming as many properties in to what space you have as possible, what they are not building is spacious units any more. In my opinion larger units are a better buy.
Another thing that has changed is the introduction of high rise condominiums and large resort style projects, this ultimately mean lots more units in one development. The trouble with buying in somewhere that has hundreds of units is that invariable the units are all the same and if you ever decide that you wanted to sell, you will almost certainly just be have a price war with other identical units that are for sale. I think it would be a much better investment to focus on smaller project.
What are also seeing now are the effects of poor construction, there are a few projects condominiums that are only 2-3 years old that are having all sorts of problems, it’s easy for a project to look lovely when its brand new, but the shine doesn’t take long to fade if the developer was cutting corners and penny pinching when they were building it. My advice would be go for a building that is already a few years old, this is enough time for teething problems to pass and you know what you are getting.
All though there is a big over supply at the moment, some areas or not as effected as others. Jontiem 2nd rd is probably has the most units and I think this is an area to avoid for now. Real estate is all about location location and I think Central Pattaya or Pratumnak hill will always be the most desirable areas of Pattaya, so that is where I would start looking.
We believe now is the time to buy, but the units ‘to buy’ are the ones in short supply. I have short listed a few developments that fit the following requirements;
- Have less than 80 units
- Studios are a minimum 40sqm, 1 beds minimum 70sqm and 2 beds minimum 110sqm
- Located close to the city center
- Are over 5 years old
Here is a perfect example of buying in an older well established development as opposed to one of the newer high rise developments on Pratumnak Hill.
The Cliff: https://lovepattayaproperty.com/en-GB/realestate/pratumnak/condo/lpp-c005796
8,800,000 THB Price per m2 : 86,275 THB
Executive residence 4: https://lovepattayaproperty.com/en-GB/realestate/pratumnak/condo/lpp-c006280
12,000,000 THB Price per m2 : 59,113 THB
I am sure there are more but I have 5 developments that fit the requirements that I am looking for and I have sourced the best deals available. 4 of the 5 are all by the same developer and are located in Cosy Beach. Cosy beach is arguable the nicest of Pattaya’s beaches and because Cosy beach is a cul de sac and there are no through roads so it is the only place in the city that hasn’t really been effected by the increasing traffic. It is also only about 2km from walking street, So it ticks the location box. The other one is in North/Central Pattaya. We are focusing on the following projects;
Executive Residence 1,2,3 and 4
- Between 27 and 42 units per building
- The smallest units in any of the buildings are 72sqm
- Located in Cosy beach
- Between 10 and 6 years old
- 72 units Total
- The one bed units are 82 sqm and 116sqm 2 beds
- Located in North/Central Pattaya
- 9 years old
Love Pattaya Property have sourced what we feel are the best deals available in those buildings. For more information please get in touch or explore the website.