Pattaya’s Residential Boom Still Continues

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Pattaya’s residential boom still continues

PATTAYA: -- More projects are in the pipeline On the face of it, Pattaya’s property market has been in line for a knock or two. Firstly, there was the announcement last May that the law banning shell or dummy companies to buy freehold land would be enforced at land offices for all new contracts. Then there were visa changes which, amongst other matters, abolished the investor’s visa and tightened the paperwork on some long stay permits.

Finally, there was a military coup which traditionally has created doubts in the minds of investors. But no. According to a report by international property consultants CB Richard Ellis, there’s plenty of demand still pent up in the system from both Thais and foreigners for both condominium units and single houses and villas. As proof of their confidence, the company plans to open a new office in Pattaya.

The consultants say that more property developers are entering the market and launching ever more initiatives including residences, chain hotels, top class retail facilities and lifestyle outlets.

These prospects are increasing the attractiveness of the resort as a convenient leisure-home location and destination. The report says that, in the medium term, the proximity of Suvarnabhumi airport will be a deciding factor boosting both domestic and business units for sale and rent. The improvements in infrastructure, many only in the pipeline such as ring roads, are also cited as crowd pullers.

CB Richard Ellis points out that there are now several markets in Pattaya on the property purchase front. Houses and condominium units can be bought as first homes, second homes for leisure or retirement residences.

There is a demand for larger units as more families move into the area. Also, there’s a strong market for investors who don’t intend to live in the apartment or villa which they own. A good example of a successful project in the resort is The Sails, a five star condominium with more than three quarters of the total units sold. Another is Baan Talay, a luxury single-detached housing project off Jomtien beach with starting prices of around 15 million baht.

Baan Talay has attracted local and overseas interest as it offers both luxury and true privacy. Prime locations include Wong Amat beach where the new Northpoint twin towers are to be built, following on the success of Raimon Land’s first project at Northshore in north Pattaya, and Pratumnak Hill which is literally sprouting with high value properties already built or under construction. Another choice area is the Jomtien beach area where La Royale is one of several quality structures soon to be ready for occupancy. In fact, so huge has been the demand that the luxury market is fast spreading to Bang Saray and Tawanron beach which still can offer pristine beaches, a lot of lush greenery and true privacy.

Most of the projects are on or near the beach as it’s essential to have sea views from the prime units. Research has shown that sea views are one of the indispensable elements in a successful, grade “A” package. Given the strong demand, prices at the top end of the market have been rising especially as grade “A” units are still less than 10% of the total units now on the market in the Pattaya area, according to the CB Richard Ellis’ figures. It’s now common for the best units in beachfront front condos to be swelling at over 100,000 baht per square metre and the 150,000 soft barrier is about to be breached, according to industry insiders.

CB Richard Ellis believes Pattaya is now experiencing a rising wave of a new property cycle as demand continues to improve and experts see developments continuing to be built in both the residential and the holiday home contexts. There is also a growing demand for rented accommodation in the luxury market which is a key reason why serious investors are rubbing their hands with glee. So, expect 2007 to be a bumper year for quality Pattaya properties of all sizes.

by Barry Kenyon

Pattaya Today 2006-11-29