Many factors determine prices in the secondary housing market in Pattaya, and the range of prices is huge. Theoretically, you can find property for investment in Pattaya and buy housing even for ฿500,000-600,000. However, this will be a small studio option in a cheap and old Thai economy-class condominium, built about 20-25 years ago and with a rather inconvenient location. Lets talk about this in our article.
The prices
As sales practice shows, even though many people are now actively interested in the cheap segment, in reality, most buyers refuse to purchase such housing, having familiarized themselves with it “live” and prefer to “add” a slightly different level to purchase apartments. Therefore, the prices are normal apartments (we are talking about studios with an area of about 30 square meters), albeit in old-built condominiums, but with normal infrastructure, location, and, importantly, keeping the whole complex “in shape”, it is better to consider based on prices from ฿1 million.
The next price point regarding quality and novelty starts after ฿1,500,000. At the same time, one should not expect to buy 50-60 square meters near the sea for such amounts, as buyers sometimes expect – a similar situation could exist only about 10 years ago. The real estate market is changing.
Currently, there is a situation where it is more interesting to buy an apartment in an old condominium in Pattaya in a number of ways than in a new building.
The cost of land is growing rapidly, so new projects at a comparable price will be located in more disadvantageous places than buildings built long ago and closer to the sea or the center.
When buying an apartment on the secondary market, you are also relieved of the worries associated with any construction on the topic of potential delays in construction, theoretical bankruptcies, unfinished projects, etc.
And the last thing – the apartment acquired in this way can immediately begin to rent out, receiving income.
When buying a "secondary" in Pattaya is the need to pay for the finished apartment immediately, without installments. Installment plans in Thailand are provided only when buying a new building and apply to the construction period (until the house is handed over).
Buying an apartment in Thailand in the secondary market is different from purchasing in the primary (in a new building) and requires a mandatory personal presence. The whole procedure for buying an apartment usually takes two weeks. It is possible to buy an apartment simply by arriving on a standard tourist package.
Buying a finished apartment in the secondary market in Pattaya
The procedure:
- A trip around Pattaya and inspection and selection of apartments, according to the parameters of interest to the buyer (cost, area, condo, apartment size, floor, etc.).
- Conclusion of an agreement with the apartment's owner with the agency's participation. Payment of a deposit of up to ฿100,000-150,000. After signing the contract, the owner-seller prepares the apartment for sale and collects the necessary documents, which takes approximately 7-10 days. This is the longest stage of the purchase.
- At the same time, the buyer needs to open a bank account with the agency's help, transfer funds for the purchase to it, and receive a FET certificate.
- The final settlement takes place when the purchase and sale transaction is executed at the Pattaya Land Office (state registration authority, Land Office). Employees of state bodies additionally check all documents. The apartment is registered as a property in the buyer's name, who eventually receives a chanot in his hands – an official document confirming the right of ownership with the buyer's name entered in the "Owner" column.
- The main condition for purchasing an apartment in Thailand is receiving money for its purchase from outside Thailand. Traveler's checks, bank transfers, or declared cash imports are equated to "receipt of money from abroad".
To find a property will be easy if you use the Thailand-Real.Estate aggregator website.
Pattaya real estate market and its potential
Demand in the Pattaya real estate market is supported by the economic growth of the east coast, with one of the main places in this development is occupied by Pattaya itself. The gross domestic product of Chonburi (where Pattaya is located) and Rayong (located south of Chonburi and is a rapidly developing industrial zone), as well as the entire east coast as a whole, is growing faster than any other region in Thailand and has consistently ranked second after Bangkok since 2006. In connection with this factor, the region's middle class is very strong. Therefore, investors are a stable basis for long-term return on investment in real estate (rental demand), prices for which are quite affordable.
The demand for housing has grown along with the city's economic condition, as a result of which many of Thailand's leading enterprises have become interested in investing in real estate in Pattaya. As a result, Pattaya became the first region after Bangkok to begin mass high-quality construction.
With the opening of the new Bangkok International Airport, located even closer to Pattaya, the city has taken advantage of this and took a step forward in development with improved infrastructure. A new highway from Bangkok, schools, universities, and new modern hospitals have been built, and investments have been attracted in high-class residential buildings. Several large high-end shopping malls have also been opened in response to the new arrival standards and the increase in the number of foreigners permanently residing in the city.
Pattaya has a very good long-term potential for 6 to 12-month leases. There is a trend towards an influx of long-term tourists who need quality accommodation.
One of the resort's strengths is the multi-ethnic composition of visitors to Pattaya. Real estate here is acquired by representatives of 30 different nationalities, which indicates a great interest in Pattaya from many countries.
Conclusion
With building standards constantly rising and developers delivering on their promises, Pattaya remains a great place to invest in real estate. Foreigners buy not just housing, but an affordable lifestyle and climate, getting real estate that meets international standards at prices lower than in other world resorts. For Thais, real estate in Pattaya is also a very reliable way of investment; they are confident that five years after the purchase, the property will increase capital value and be an excellent rental product.
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