PATTAYA, Thailand – As Thailand’s residential real estate market faces its lowest new project launches in 23 years, Pattaya’s property sector is adapting to shifting demand from both domestic and international buyers, creating potential opportunities for second-home buyers amid attractive bargains.
According to the latest report from the Agency for Real Estate Affairs (AREA), the first half of 2025 saw only 15,484 new residential units launched nationwide, marking the slowest start to a year since the aftermath of the 1997 Asian financial crisis. This number is roughly half of the same period last year, and total new project values amounted to 111.23 billion baht. The decline primarily reflects subdued demand and caution among buyers, particularly in the lower-priced segments.
Despite this sluggishness, the market value remains buoyed by launches of mid- to high-end properties, especially single-family homes and luxury condominiums priced between 5 to 20 million baht. These high-end homes accounted for about 60% of total market value, though they represented only 24.1% of the total units launched. Notably, ultra-luxury homes priced over 20 million baht made up 33.2% of the overall market value, despite just 821 units being introduced.
On the flip side, affordable housing segments priced under 2 to 3 million baht, including low-rise projects and condominiums in satellite areas around Bangkok such as Bangkhen-Khlong Luang and Pracha Uthit, have struggled. Sales have slowed significantly due to buyer uncertainty and ongoing difficulties in accessing financing.
Pattaya, with its established appeal as a year-round tourist and expat hotspot, is responding by focusing on mid- to high-end resort-style condominiums and homes, targeting affluent Thais and long-term foreign residents seeking second homes or investments. Its strategic coastal location, improved infrastructure, and vibrant lifestyle offerings help maintain buyer interest, even as the broader national market slows.
Additionally, the city benefits from government tourism campaigns and a rebound in domestic travel, factors that are gradually stimulating property demand.
Interestingly, while new launches have slowed, sales data show a different picture. In the first half of 2025, 23,305 units were sold nationwide, surpassing new launches by over 50%. This reflects a concerted effort by developers to clear existing inventory. The total remaining housing stock fell to 223,019 units by mid-2025, down from 234,478 units at the end of 2024, indicating a market in “clearance mode” rather than expansion.
AREA analysts anticipate that the market could receive a boost from upcoming affordable housing projects priced below 1.5 million baht, currently in planning or approval stages. If these projects move forward—especially under BOI (Board of Investment) incentives—they could help revive the lower-end market that has been particularly weak.
Even with expected launches in the second half of 2025, AREA forecasts total new units for the year to reach about 39,540 units, with a combined development value of approximately 251.37 billion baht, averaging 6.36 million baht per unit. However, these figures still represent a significant year-over-year decline of 39.2% in unit count and 35.7% in development value compared to 2024.
This projected annual figure would mark the lowest number of new housing units launched in 23 years, even below levels seen during the COVID-19 pandemic downturn and the early recovery phase following the 1997 Asian financial crisis. The total development value is also set to hit a 16-year low, underscoring ongoing challenges linked to economic structure and fragile purchasing power.
What This Means for Buyers
For prospective buyers, especially those eyeing Pattaya for a vacation or second home, or as an investment, the market offers unique opportunities. Slower new supply growth, combined with active clearance of existing stock, suggests increased bargaining power and better deals. Meanwhile, Pattaya’s ongoing transformation and strong tourism base continue to support long-term property value.
Buyers should remain aware of economic headwinds and financing challenges but can find attractive options by targeting mid- to high-end resort-style properties popular with both locals and foreigners seeking vacation retreats or long-term stays.
