Bargains returning to the Pattaya property market? At first glance it might seem that property prices are not dropping much in Pattaya and the surrounding areas. For most participants, this can be seen to be a good thing, especially given that many would be buyers whether owner-occupiers or those buying to let do intend to have an investment interest in their purchase.

Yet it is a strange phenomenon, in what is, after all, an unprecedented time of economic turmoil. They may be several reasons for this. First, prices of resale units are typically not cut to below the prices that the previous owners bought as the mentality is the local market is not to sell at a loss. This is especially so on the part of Thai buyers, but for overseas owners, the reason for this happening here in Thailand as compared to massive price drops in the UK or US is probably due to the fact that most properties have been bought on a cash basis and there are no mortgage providers forcing liquidations at fire sale prices on the back of delinquent mortgages.

The second factor is that the slower economy and the end of the boom in prices has undoubtedly led to a drop in supply, something that always caused price pressure even in book times. Currently with supply starting to become less of a problem, even with dropping demand, prices have managed to remain firm based on this rather careful balance of opposing factors.

Still, those looking to sell a Pattaya property must find buyers and with many targeting foreigners it would be expected that with currencies in the UK, Australia and Europe all falling in value, prices might succumb eventually. The British pound in particular has fallen so rapidly that even without a shift in Thai prices, properties cost around fifty percent more to buy in British pounds than they did just six months ago.

Interestingly though, there has been little sign of price weakness in Baht terms when you look at the prices advertised in the press or in real estate agents. However, behind the scenes, price flexibility might just be more forthcoming in these times of a slower economy when it comes to negotiating a discount for a quick sale. To take advantage of this possibility it is important to be a serious buyer, and so it is worth approaching a seller only when you really are prepared to make a firm offer. Sellers could well be more open to discounting in these times as opposed to previous years at the point in time when there is a cash offer on the table.

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