Robust Condo Market in Chon Buri
The condo market in Chon Buri, particularly in Pattaya, remains robust with a significant increase in new supply launched during the first quarter of 2024. The number of new condo launches in Chon Buri tallied 5,542 units worth 21.5 billion baht. This is an impressive leap from the mere 79 units launched in the same period last year, marking a four-quarter consecutive rise in new supply. The robust condo market signals strong developer confidence and expected demand from both local and foreign buyers.
Similarly, condo sales have also seen substantial growth. Condo sales surged by 183% to 2,787 units worth 9.14 billion baht, with an absorption rate of 4.6% per month. This surge in sales underscores the increasing appeal of condos in Chon Buri, driven largely by strategic locations, attractive pricing, and favorable market conditions.
Challenges and Opportunities
However, it is not all smooth sailing. Despite the promising figures, caution is needed. The number of unsold units rose by 10.8% to 29,224 units worth around 110 billion baht. This increase is driven by a 26% jump in unsold condos, reaching 17,300 units worth 66.3 billion baht. The market faces an oversupply challenge, necessitating strategic sales and marketing efforts to avoid market saturation.
Luxury condo projects are expected to bolster the prominence of key locations such as Pattaya City, Wong Amat, and Jomtien. These high-end developments could cater to affluent local and international buyers, adding a layer of resilience to the market. Foreign buyers, particularly from China and Russia, have shown a resurgence in interest, and some are even purchasing multiple units within a single project. Such inflows can potentially balance the supply and demand dynamics, offering avenues for market stability.
Impact on Low-Rise Houses and Market Stability
The interest in condos has somewhat affected the low-rise house segment. Sales of low-rise houses totaled 1,758 units, which is a 10.6% decline, valued at 7.16 billion baht, with an absorption rate of 4.3%. This downturn in low-rise property sales could be symptomatic of shifting buyer preferences or a more attractive condo market. As developers and investors navigate this landscape, close attention to buyer preferences and market trends will be crucial.
Price stability remains a key feature of the current condo market. The average selling prices of condos in Pattaya have stayed relatively stable despite the large number of unsold units at completed projects. This stability might suggest a market that is resilient and capable of absorbing excess inventory without significant price declines. Nonetheless, market players must tread carefully to avoid potential oversupply issues that could affect long-term market health.
In conclusion, while the condo market in Chon Buri, particularly in Pattaya, shows promising growth and opportunities, it is imperative to remain cautious. Developers and investors must strategically maneuver to address the challenges posed by the oversupply of units and shifting buyer preferences.