mardi 22 septembre 2015

Pattaya real estate market collapse ?

Personnal opinion


It is common knowledge that the current situation with regards market exchange rates for foreign currency against the strong Thai Baht, especially for the Russian Ruble, has had an adverse affect on property investment throughout Thailand.

However, rather than thinking it is all doom and gloom let us consider the actions being taken by various authorities to ensure that Pattaya remains the number one tourist destination in Thailand and ultimately the reason why investing in property in our City does remain a viable option.

Pattaya is ideally located 147 km from downtown Bangkok and only 90 minutes by car from Suvarnabhumi Airport and discussions are under way to increase the capacity at nearby U-Tapao airport for international travelers in 2017. Plans have also been agreed to construct a fast track train service directly from Bangkok to Pattaya which will reduce the transfer time down to a mere 35 minutes.

Situated on the Gulf of Thailand, Pattaya provides a wonderful all year round climate and the warmth given by the Thai people is something to behold. The delicious Thai and International cuisine, along with the re-known multicultural atmosphere, ensures that everyone has unforgettable memories.

The Mayor, Mr. Itthipol Khunplome aims to make Pattaya the number one destination within Southeast Asia and is at the forefront of ideas to increase future visitors. The beaches are considerably cleaner now and the police have been instructed to increase security everywhere which is certainly a positive way to make visitors feel more welcome. He wishes to promote an annual qualifier for the World Jet Ski Championship and has the ambitious plan of hosting Formula 1 racing of Thailand and has made a formal application to do so.

Obviously all of the above measures will assist the property market, but what else should be taken into account when considering property investments in Pattaya? Firstly, it should be noted that the nearby industrial areas alone account for almost 30% of National GDP. The completion of the fast train to Bangkok will encourage people employed there to consider Pattaya as being a luxury suburb of the capitol city and a means of escaping the hustle and bustle in the evenings and weekend.

China accounts for the largest number of tourists in Thailand and the opening of ASEAN later this year can only increase both tourists and investors from other neighboring countries. Also keep in mind that the Russian Ruble rises and the Thai Baht goes down right now, which will inevitably affect the market. And after all Thailand remains in the 'Top 10' destinations in the world for living, isn't it ?

Always remember that with any property investment in Thailand that it is advisable to utilize the professional skills of a reputable real estate agent. 

Olivier B.

Skylight from Powerhouse development