Pattaya's Secondary Market Captured 89.7% of All Transactions in Q2 2023, While Local Buyers Outpace Foreigners in Na Kluea and Nong Prue
Secondary property in Pattaya recorded a record share of 89.7% of total condominium sales in the second quarter of 2023. This figure reflects a structural shift in the market, where Thai buyers in the Na Kluea and Nong Prue areas have come to dominate over foreign investors, who traditionally preferred new developments. According to data from the Real Estate Information Center (REIC) at Government Housing Bank, the total number of condominium ownership transfers in Chonburi province in the second quarter of 2023 increased by 53.4% compared to the same period the previous year, reaching 3,563 units with a total value of 18.083 billion baht - a growth of 49.4%.
Market Structure: Why Resale Overtook New Developments
The reason for this imbalance lies in supply dynamics. From 2020 to 2022, Pattaya experienced a period of minimal new project launches due to pandemic restrictions. Developers paused activity, which led to high absorption rates of existing housing. When the market saw a sharp surge of new launches in the second and third quarters of 2023 - 4,322 units worth 15.1 billion baht (growth of 246%), buyers faced a shortage of ready housing for immediate occupancy.
The secondary market filled this niche. Ready apartments with functioning utilities, established resident communities, and clear maintenance history became the preferred choice for Thai families seeking primary housing. Foreigners, in contrast, more often viewed new developments as an investment product with deferred returns.
Geography of Activity: Na Kluea and Nong Prue Lead in Local Purchases
The Na Kluea district, located north of central Pattaya, has traditionally attracted Russian buyers thanks to clean beaches and developed infrastructure. However, data from the second quarter of 2023 shows a shift in balance: Thai residents are actively buying secondary condominiums in this area, using them as permanent housing or for long-term rental to local workers of the Eastern Economic Corridor (EEC).
Nong Prue, an inland district of Pattaya without direct beach access, has historically been a zone of villa construction and low-rise projects. The growth in secondary condominium sales here is related to price affordability - from 1.5 to 3 million baht for a studio or one-bedroom apartment of 25-35 m². For comparison: similar housing in the coastal zone of Jomtien costs from 2.5 to 4.5 million baht.
Foreign Buyers: Share Growing, But Structure Changing
Despite the dominance of resale in overall transaction volume, foreign buyers continue to increase activity. In the first half of 2023, condominium ownership transfers to foreigners throughout Chonburi province increased by 14.7% in units and 24.5% in value compared to 2022. The foreign share was 10.8% of total transactions and 20.5% of total value - a figure exceeding average values from 2018-2022 (30.8% and 48.8% respectively for Pattaya).
Chonburi retained first place in the volume of foreign purchases, occupying 43.4% of the national market, ahead of Bangkok with its 37.7%. The combined share of the two provinces reached 81.1%. Chinese citizens remained the largest group of buyers, accounting for 47.0% of transferred units and 48.3% of total value. Russians took second place with 9.6% by quantity and 7.3% by value.
Why Foreigners Spend More with Fewer Transactions
The disproportion between the share by quantity (10.8%) and by value (20.5%) is explained by the purchase structure. Foreign investors prefer larger apartments - from 50 m² and above - in projects with high management standards and proximity to the beach. The average purchase cost for a foreigner in Chonburi in the second quarter of 2023 was approximately 5.1 million baht, while Thai buyers acquired housing at an average of 2.8 million baht.
This confirms data from Habitat Group, a developer of premium projects in Pattaya. The company reported that demand from Russian and Chinese buyers is concentrated in the segment of pool villas priced at 10-20 million baht. The Highland Park Pool Villa project sold out its first phase of 20 units in early 2023, and the second phase with prices from 9.9 to 20 million baht is in active sales.
Price Dynamics: Resale Cheaper, But Gap Narrowing
Pattaya's secondary market offers a price advantage over new developments, but this gap is gradually narrowing. As of the third quarter of 2023, the average price per square meter in ready condominiums was 150,000-180,000 baht in coastal areas and 80,000-120,000 baht in inland zones. New developments started from 180,000 baht per m² on the coast and from 100,000 baht in inland areas.
Habitat Group forecasts that prices for condominiums aged 2-3 years will rise to 250,000-300,000 baht per m² in the next 2-3 years from the current 200,000 baht per m². This means potential growth of 25-50%, making the purchase of secondary housing today an attractive investment for those willing to wait.
Table: Comparison of Prices in Pattaya's Secondary and Primary Markets (Q3 2023)
| District | Resale (baht/m²) | New Developments (baht/m²) | Difference |
|---|---|---|---|
| Jomtien (beachfront) | 150,000-180,000 | 180,000-220,000 | 16-22% |
| Na Kluea (beachfront) | 160,000-190,000 | 190,000-230,000 | 15-21% |
| Central Pattaya | 140,000-170,000 | 170,000-210,000 | 18-24% |
| Nong Prue (inland) | 80,000-120,000 | 100,000-140,000 | 20-25% |
| East Pattaya | 90,000-130,000 | 110,000-150,000 | 18-22% |
Unsold Inventory and Absorption Rate
The third quarter of 2023 recorded 15,871 unsold units in Chonburi with a total value of 61.7 billion baht - growth of 3.1% compared to the previous quarter. The Jomtien district leads in unrealized condominiums with 5,239 units, requiring 31 months for complete absorption at current sales rates (monthly absorption rate - 2.9 units).
Pattaya-Khao Phra Tamnak has 3,579 unsold units with an absorption period of 26 months (rate of 3.4 units per month). Nikom Amata-Bypass shows the best results: 2,099 units with an absorption period of 16 months (rate of 5.3 units per month). These figures indicate an oversupply in coastal zones and a relatively healthy balance in inland areas.
What Oversupply Means for Resale Buyers
The high level of unsold new developments creates pressure on developers, forcing them to offer discounts, flexible payment plans, and additional bonuses. This indirectly affects the secondary market: owners of ready apartments are forced to compete on price with developers' promotional offers. For buyers, this means the opportunity to negotiate - a price reduction of 5-10% from the initial asking price has become the norm in 2023.
However, secondary housing has the advantage of immediate availability. A buyer can inspect the actual apartment, assess the building's condition, meet neighbors and the management company. New developments, especially at the foundation stage, carry risks of delayed completion, specification changes, and, in the worst case, incomplete construction.
Legal Aspects for Foreign Resale Buyers
Purchasing a secondary condominium in Pattaya is subject to the same rules as acquiring new construction. Foreigners can own an apartment with full ownership rights (freehold) within the 49% foreign ownership quota in the building. The key difference with resale is the need to verify the transaction's legitimacy.
Before purchasing, be sure to request a property statement from the Land Office to ensure there are no encumbrances, mortgages, or legal disputes. Verify that the seller is the current owner according to the Chanote document (Nor Sor 4) or condo certificate. Make sure the foreign quota in the building is not exhausted - if all 49% is already occupied, you can only buy through a Thai company (which involves legal risks) or in the name of a Thai spouse.
Additionally, check the history of utility and building maintenance fee payments. Debts transfer to the new owner, and the management company may refuse transfer until full repayment of debts.
What This Means for Buyers in Pattaya
The dominance of the secondary market at 89.7% of transactions in the second quarter of 2023 creates a window of opportunity for Russian buyers ready to act quickly. The high volume of supply means competitive pricing and the ability to choose from multiple options in one area.
For investors planning to rent housing short-term to tourists, resale in the Na Kluea and Jomtien areas offers an immediate start. The apartment is already furnished (in most cases), has connected utilities, and can generate income from the first month of ownership. Average short-term rental returns in Pattaya are 6-8% annually, which is higher than new developments that require waiting for construction completion.
For those seeking permanent housing or a retirement home, the secondary market allows you to assess the real quality of life in the building. Visit the complex at different times of day, talk to residents, check the operation of elevators, the condition of the pool and common areas. New developments are sold based on renderings and promises - resale shows reality.
The current balance of power, where Thai buyers are purchasing affordable housing in inland areas while foreigners concentrate on premium beachfront properties, creates a segmented market. If your budget is limited to 2-3 million baht, consider Nong Prue or East Pattaya - competition with local buyers will be higher, but the selection is wider. If you're ready to invest 5-10 million baht and above, coastal areas with a high proportion of foreign owners will offer better liquidity on resale.
The growth of foreign purchases by 24.5% in value in the first half of 2023 signals a recovery of investor confidence in the Thai market after the pandemic. Habitat Group's forecast of price growth of 25-50% in the next 2-3 years makes purchasing resale today strategically advantageous - provided thorough verification of the property and legal legitimacy of the transaction.
Conclusion
Pattaya's secondary market in the second quarter of 2023 demonstrated structural predominance over new developments, occupying 89.7% of all transactions. Thai buyers are actively acquiring affordable housing in the Na Kluea and Nong Prue areas, using it for permanent residence or long-term rental. Foreign investors, while constituting a minority in the number of transactions, spend on average twice as much, concentrating on premium properties with high income potential.
The growth in transfers by 53.4% and the increase in transaction value by 49.4% in the second quarter confirms the market's recovery after the pandemic decline. For Russian buyers, this means the opportunity to choose from a wide offering of ready housing at competitive prices with the prospect of value growth in coming years. The key success factor is thorough verification of the property's legal legitimacy and understanding of the local specifics of each Pattaya district.
