Currently developers in Pattaya are in overdrive constructing more condominium projects than ever before. In three to four years the market could be potentially flooded with apartments not just for sale, but for rental too. This could affect the rental value and in the worst case many condos may sit empty for months on end. (This of course is not written in stone, there are other possibilities too, read on!) If you are buying an off-plan condo to live in, then this will be of little or no concern to you, in fact it could be a good thing having less neighbours!
Any serious developer in Pattaya will already know that an over saturated market could cause problems, unless they have a back-up plan. One option would be for the developer to turn a high spec new build condo into a hotel. If unit sales numbers are too low the people that have already bought off-plan could do a deal with the hotel where they get a good rental value. With Hotels in Pattaya currently enjoying between 70-90% occupancy it seems a logical solution. (8.3 million Tourists visited Pattaya in 2012 with a predicted 10% increase in 2013.) Some developers may even consider altering their construction plans and change the accommodation to a hotel without ever marketing the units for sale.
If you have bought an off-plan condo with view to long term rental to a third party, you may need to broaden your market horizon. It could be easier to rent on a monthly or even weekly basis to the tourist market. If this is too much aggravation for you then there are letting companies and agents that can assist you and even manage the whole business of maintenance and cleaning etc.
In 2015 the ASEAN agreement will come into force and with its number one aim of accelerating economic growth this will no doubt result in many more ‘business’ tourists visiting Pattaya and Thailand in general. Many new companies will wish to set up business here and this will result in a need for more short and long term rental properties. There may even be a need for more condos to rent post 2015!