Pattaya's Five-star Market Potential

[Pattaya_Fox]

PROPERTYInsights

Pattaya's five-star market potential

NIGEL CORNICK

The growth in Pattaya's property market in just the last two years is nothing short of astonishing. There are a number of factors that have caused in this growth, such as the economic strength of the Eastern Seaboard, but none has been more important than tourism.

As an industry, tourism has created international awareness and prosperity, resulting in the establishment of impressive five-star infrastructure assets particularly in terms of transport, health and hospitality, which are directly benefiting the property industry today.

Pattaya has long been the biggest tourism destination for Thailand and continues to be so with an estimated 6.85 million visitors expected to have arrived in 2007, capping an increase rate of almost one million visitors every two years over the last five years.

Thais, who for years have travelled to the beach resort for weekends, remain the dominant group representing between 20% and 25% of total visitors.

The biggest change the destination is experiencing is the surging volume of visitors from Russia. From January to June 2007, a total of 558,608 Russians visited Pattaya, by far the biggest overseas visitor source, and a huge increase over the 482,587 arrivals from the destination in the whole of 2006.

Visitor arrivals from South Korea, China and India also climbed significantly, by 81%, 25% and 51% respectively.

The tourism arrival profile directly reflects the nationalities who invest in Pattaya from around the world, with Russian buyers topping the list of investors in Raimon Land projects in 2007. They represented a sold value of almost 250 million baht or 22% of the total value of international investment with our company in Pattaya.

The Thai market continues to understand and profit from Pattaya too, with property investments totalling more than 200 million baht in 2007 in Raimon Land projects representing 19% of total investment. This is followed by the UK and Australia who each make up a further 10% and Germany with 6% to comprise the top five investor countries last year.

This should not obscure the diversity of investor markets in Pattaya, with the United States, Sweden, China, Estonia and Ireland all significant investors with a total of 1.1 billion baht invested with Raimon Land in Pattaya in 2007.

The strength of the destination, though, is not just about numbers. Much of Pattaya's allure is as a lifestyle destination due to the wide choice of upscale leisure activities that can be enjoyed throughout most of the year.

Pattaya's ability to offer a host of international sports and leisure activities, combined with all the conveniences of a modern and cosmopolitan city, now just 90 minutes from Suvarnabhumi Airport, is attracting investors sold on the destination's tropical lifestyle.

One example is the rise in the international yachting and sailing scene, with the 2007 Top of the Gulf Regatta attracting more than 500 sailors and some 250 vessels.

The regatta was headquartered at Jomtien's Ocean Marina Yacht Club, one of Asia's top marinas. It includes a condominium complex, hotel and yacht club, and is capable of handling 500 yachts in the water and 200 in drydock. Further plans include the construction of the 32-storey San Mario Condominium with a 51-room hotel.

This type of luxury accommodation development characterises the more upmarket trend in Pattaya, where new hotel projects will result in a 50% increase in five-star room inventory over the next two to three years. In the last quarter of 2007, we witnessed the opening of Amari's Orchid Resort and Tower in North Pattaya, while Centara, Hilton, Movenpick, InterContinental and Le Me'ridien all plan to open upscale hotels and resorts between 2008 and 2010.

The development of a former beachside resort into a dynamic city offering an active lifestyle on its doorstep is a compelling investment for many nationalities and it is also something that has not been lost on the host of retirees investing in the destination.

Tourism has blazed the trail for much of this to happen. Now it is the turn of property developers to build on this platform, contribute to the local economy and to the happiness of investors, and those who want to live in the destination in the winter months.This is the first in a series of three articles that draws on research by Raimon Land detailed in the upcoming publication, 'Why Invest ... Pattaya'. In the next article on Feb 18, we will look at rental yields and capital gains in Pattaya.

4th February 2008

[Humphrey Bear]

But this is just a puff piece for Raimon Land.

Not necessarily any truth in any of the figures, except that Raimon Land must owe an awful lot of tax to the government.

[Tarqin]

Puff piece. Pattaya is down market and proud of it. It COULD be turned upmarket but that would take time patience planning and investment so...

[Jingthing]

Puff piece. Pattaya is down market and proud of it. It COULD be turned upmarket but that would take time patience planning and investment so...

The development of a former beachside resort into a dynamic city offering an active lifestyle on its doorstep is a compelling investment for many nationalities and it is also something that has not been lost on the host of retirees investing in the destination.

Nope, you miss the point. It is becoming a great international city. Over time, Pattaya will indeed be a much more desirable and interesting city than Bangkok. A city doesn't aspire to only be upmarket, great cities integrate all levels.

[Lorin]

They should clean the ocean round here first and its gonna be much better tourist destination.

[Chang_paarp]

Puff piece. Pattaya is down market and proud of it. It COULD be turned upmarket but that would take time patience planning and investment so...

The missing word in the advertorial for a land company is infrastructure. Reliable supply of water, sewage, power, internet, phones as well as roads and footpaths that are passable. Next we get to other services like police, well the Russians understand the local ways as they are similar to home, but other services like rubbish removal, is there any forward planning for the proposed increase in population? These things will affect the long term out look for 5 star Pattaya.

[wilko]

Sow's a make purse ear from can't silk a...

...re-arrange these words to make a well-known truism about Pattaya.

[jonniebkk]

Exactly...cream puff piece put out by Raimon's PR department (good job too). They put out dribble like this as they have lots of overpriced condos to sell (like the new Lofts development) to ting-tong farangs. Just google Pattaya and see what comes up...monger sites, UN and NGO reports on child prostitution/pedophilia, etc. Not exactly the stuff of a 5-star resort whatever Raimon says

[999Aacha]

Puff piece. Pattaya is down market and proud of it. It COULD be turned upmarket but that would take time patience planning and investment so...

The missing word in the advertorial for a land company is infrastructure. Reliable supply of water, sewage, power, internet, phones as well as roads and footpaths that are passable. Next we get to other services like police, well the Russians understand the local ways as they are similar to home, but other services like rubbish removal, is there any forward planning for the proposed increase in population? These things will affect the long term out look for 5 star Pattaya.

well, let's say 5 out of a 100 Pattaya at the moment... Infrastructure = in..far..structure

Hopefully, they can make the beauty of Pattaya's Lifestyle out of it... I'm so happy living here.(choices!?)

[suiging]

Bit like the film "Field of Dreams", instead of a baseball field add a casino...............sit back and watch them come.

[misterman21]

For as long as i can recall Pattaya has been known as a sleazy and down market - particularly well known for its sex tourism, Of course tourists from the new markets, like Russia, may be unaware of the image prior to booking their holiday. However, a stroll along the beach at any time of day or night will surely confirm the image - whilst turning their stomaches on observing the pure lowlife scum littering the way.

I am sure that the image of pattaya they take back to their host countries is based on their true experiance, and thus pattayas reputation as a sleazy sex spot, with dangerous roads, poor infrastructure, and high crime will soon be known.

[naka]

For as long as i can recall Pattaya has been known as a sleazy and down market - particularly well known for its sex tourism, Of course tourists from the new markets, like Russia, may be unaware of the image prior to booking their holiday. However, a stroll along the beach at any time of day or night will surely confirm the image - whilst turning their stomaches on observing the pure lowlife scum littering the way.

I am sure that the image of pattaya they take back to their host countries is based on their true experiance, and thus pattayas reputation as a sleazy sex spot, with dangerous roads, poor infrastructure, and high crime will soon be known.

Is that any different from other Thai cities ? It's not like Bangers, Phuket or Chiang Mai are "upmarket" joints

Naka.

[999Aacha]

For as long as i can recall Pattaya has been known as a sleazy and down market - particularly well known for its sex tourism, Of course tourists from the new markets, like Russia, may be unaware of the image prior to booking their holiday. However, a stroll along the beach at any time of day or night will surely confirm the image - whilst turning their stomaches on observing the pure lowlife scum littering the way.

I am sure that the image of pattaya they take back to their host countries is based on their true experiance, and thus pattayas reputation as a sleazy sex spot, with dangerous roads, poor infrastructure, and high crime will soon be known.

Is that any different from other Thai cities ? It's not like Bangers, Phuket or Chiang Mai are "upmarket" joints

Naka.

...when a city in Thailand get well internationally attracted, the facilities just won't keep up, due to the short vision of those who're in charged. I think it's due to the local people(Thai and Farang) whether they're living in harmony and building the living standards together... 'Coz We're!!

[Jingthing]

For as long as i can recall Pattaya has been known as a sleazy and down market - particularly well known for its sex tourism, Of course tourists from the new markets, like Russia, may be unaware of the image prior to booking their holiday. However, a stroll along the beach at any time of day or night will surely confirm the image - whilst turning their stomaches on observing the pure lowlife scum littering the way.

I am sure that the image of pattaya they take back to their host countries is based on their true experiance, and thus pattayas reputation as a sleazy sex spot, with dangerous roads, poor infrastructure, and high crime will soon be known.

I don't speak Russian but some things I can see. The Russians came, they are here now, and they keep coming. The Russians I see on the streets appear to be having a fabulous time. They don't appear bothered one bit by the sleaze. They tend not to participate in it except for their fascination with Walking Street and find other things to do, and there are indeed lots of other things to do. There are new Russian businesses sprouting all over town. Russians are starting businesses, buying condos, visiting, and re-visiting. The puff piece was a puff piece but it contains some very real grains of truth. Pattaya is indeed on the up. The sleaze won't go away, it will just become more of an integral part of a sophisticated whole (not hole).

Edited March 19, 2008 by Jingthing

[chiang mai]

Raimon Land's contribution to the Nation newspaper today was the results of a study they had commissioned by independent consultants (sorry, I'm trying not to chuckle here). In it they said, and this got front page billing in the Nation, condo costs per square meter in Jomtiem have now doubled from 70K for square thingy to 150,000K and all this in just two years. Amazing Thailand, not.

[NanLaew]

And then you get clowns running for mayor who, when asked what they will do for Pattaya's environment, answer that they will cut down more trees so people can see more of the sea.

You get lightweights in office, you will get lightweight 'development'.

The market has changed and the nouveau rich of the former soviet block has money to burn as long as oil prices stay where they are. They will accept stinking sewers, no infrastructure, water shortages, crap public transport and tarted-up, third-world, shoddy building construction because that's what they accept at home.

But their money is the right colour so let 'em come.

[Gary A]

All this fantastic growth and people have to buy water from tanker trucks. What an ABSOLUTE disgrace. There are still derelict condo projects from 1997. I would say there are going to be a LOT more abandoned projects in the near future. The MOST astonishing thing is that people are still buying pre-construction.

[suiging]

Gary makes a good point. As a lot of new folk to Patters read this forum for the views of people who have been around a bit longer, I for one am firmly in the camp of wait and see what anything is really like when finished, before purchase. On PAPER people are sitting on healthy profits on such monoliths as North Point. Good luck to them, however over the years there have been more unhappy investors than wealthy ones in Patters " off paper " sales. We all hope for better days, but caution at present is not a bad thing.

[awayfoe]

Gary makes a good point. As a lot of new folk to Patters read this forum for the views of people who have been around a bit longer, I for one am firmly in the camp of wait and see what anything is really like when finished, before purchase. On PAPER people are sitting on healthy profits on such monoliths as North Point. Good luck to them, however over the years there have been more unhappy investors than wealthy ones in Patters " off paper " sales. We all hope for better days, but caution at present is not a bad thing.

yes ................ and now K-Teck who have suspended quotation in stok exchange Bangkok and not pay employees since Two month................

[Pushit]

Invest in water trucks not condos!