Sansiri seeks to build on rising demand for property in Pattaya

[snoop1130]

Sansiri seeks to build on rising demand for property in Pattaya

By The Nation

 

Sansiri is confident of continued strong demand from Thais and foreigners for holiday homes in Pattaya as the resort city remains one of the country’s preferred tourist destinations.

 

This demand has resulted in increased interest among investors in the city.

 

In 2016, overall sales growth in the condominium and single-house markets rose as much as 80 per cent from the previous year, with transactions particularly strong for condominiums.

 

Uthai Uthaisangsuk, senior executive vice president - business development and project development division (high rise), said that the overall market for 2017 should be promising for real estate developers, as the growth trend in Pattaya from 2016 is still gaining momentum. 

 

The company cites Pattaya’s enduring popularity as a resort city, although it notes that the city’s tourism market has suffered a setback due to a drop in the number of Russian tourists.

 

“The demand for beachside developments has grown substantially among Thais and foreigners, especially the Chinese whose presence in Pattaya has grown by 31 per cent,” Uthai said.

 

“The Wong-amat district is coming into focus due to its quiet and tranquil location, with as much as 85 per cent of the total supply sold in the Bt95,000 to Bt120,000 square metre range. The most popular are the one-bedroom units with floor areas of 40 to 55 square metres. This is because these mid-size units can accommodate more people and can more readily fulfil the needs of renters.”

 

Among Sansiri projects, The Base Central Pattaya on the Pattaya 2 Road quickly racked up 100 per cent sales in 2013. Since the project’s completion in 2016, customers have steadily taken up the transfer of ownership – 66 per cent of Thai owners and 34 per cent of foreign owners. The ratio between owner occupiers and units bought for rent is about 30:70, with a good rental yield of 7 per cent and the resale price appreciating by 15-20 per cent.

 

Meanwhile, the high-end Baan Plai Had by Sansiri condominium project has made sales of 95 percent of the units, with 80 per cent being Thai customers. The ratio between owner-occupier and units bought for rent is about 60:40. From early this year, Sansiri has included Baan Plai Had by Sansiri and The Base Central Pattaya in its holiday homes campaign to boost demand in the high season. The campaign focuses on condominium projects and ready-to-move-in single-house projects in five resort cities. 

 

At Baan Plai Had by Sansiri, the promotion features furnished three-bedroom units with sea view for Bt14.99 million. Sansiri says it has received a strong response to its marketing.

 

Source: http://www.nationmultimedia.com/news/business/30311898

 

-- © Copyright The Nation 2017-4-10

[clockman]

it will end in tears!

[KittenKong]

2 hours ago, snoop1130 said:

The most popular are the one-bedroom units with floor areas of 40 to 55 square metres. This is because these mid-size units can accommodate more people .....

 

Crikey. Where I come from a 55sqm one-bed unit is suitable for two people at most, and more comfortably just one. Thais certainly do like packing them in.

[LennyW]

Seeing the headline I thought maybe Sansri had purchased all the stalled, failed and abandoned projects around - with so much confidence...but no...just a puff piece, 100% sales, 7% rental yields, resales appreciating 15 to 20%, aye...right!!!

[NormanW]

It's a load of tosh.

The headline should of said. 

 

Here's yet another developer trying to make more money. 

 

Just look at the number of new and old units for sale. 

 

For crying out loud provide parks around the city not yet more buildings concrete traffic and noise!!!

[Mickmouse1]

Can we have real figures on Pattaya properties ?

How many units were built in the past 2 years?

How many units were sold ?

Can we have by location stats?

How many old units are for sale?

I am aware of some units for sales since 2013 in Jomtien?

[NormanW]

1 minute ago, Mickmouse1 said:

Can we have real figures on Pattaya properties ?

How many units were built in the past 2 years?

How many units were sold ?

Can we have by location stats?

How many old units are for sale?

I am aware of some units for sales since 2013 in Jomtien?

The sad fact is we'll never know the whole truth. 

[clockman]

A dying dog.!

[Holmsedale25]

1 hour ago, NormanW said:

It's a load of tosh.

The headline should of said. 

 

Here's yet another developer trying to make more money. 

 

Just look at the number of new and old units for sale. 

 

For crying out loud provide parks around the city not yet more buildings concrete traffic and noise!!!

Totally agree.

 

There are loads of new high rise condos along Jomtien 2nd Road and they are all more or less empty.

 

I believe they call it legal money laundering. And just like the empty shop houses everywhere, they will just become an ugly eyesore

[janclaes47]

About a year ago the head of sales at Baan Plai Had told me that Sansiri had put all new projects on the Eastern Seaboard on hold , because of the lack of demand.

 

Baan Plai Had was virtually empty at that time, it was a Saturday witha total of 4 cars in the parking lot, and they had BIG promotions for entire parts of the building.

 

Discounts of 30 and 40%. They must have done a roaring trade since

 

Now with 95% sold they still feel the need for big promotions?

 

But the figures that the majority of owners is Thai says it all, because they are parking their ill gotten gains, and think that trees grow into the sky.

[overherebc]

2 hours ago, Holmsedale25 said:

Totally agree.

 

There are loads of new high rise condos along Jomtien 2nd Road and they are all more or less empty.

 

I believe they call it legal money laundering. And just like the empty shop houses everywhere, they will just become an ugly eyesore

Fit in well then with the whole place then.

[Destiny1990]

I wonder why The Waterfront Bali Hai pier had stopped its construction.

[NormanW]

Either keep building or take it down floor by floor.

 

It's just embarrassing now!

[Ijustcashier]

Either keep building or take it down floor by floor.
 
It's just embarrassing now!

How hard can it be for it to be sold off to another developer at fire sale? Surely the firm handling the bankruptcy would want to get something.

Have seen this happen in one condo in bangkok after a 5 year stall

[Destiny1990]

9 minutes ago, Ijustcashier said:

How hard can it be for it to be sold off to another developer at fire sale? Surely the firm handling the bankruptcy would want to get something.

Have seen this happen in one condo in bangkok after a 5 year stall

Problem could be the amount on bank debt on the building and also condo unit buyers with big installments in it..i think still a nice location with the park and ocean view..

[sharecropper]

If the Base on Second Road is 100% sold why do they have to resort to the surely bargain-basement promotion method of having 15 year old kids forlornly waving green flags to attract attention to the place every weekend?

[newnative]

5 hours ago, Holmsedale25 said:

Totally agree.

 

There are loads of new high rise condos along Jomtien 2nd Road and they are all more or less empty.

 

I believe they call it legal money laundering. And just like the empty shop houses everywhere, they will just become an ugly eyesore

The only new highrises I know of on Jomtien Second Road are Dusit and Grand.   Maybe I am forgetting some but not exactly 'loads'.  Dusit and Grand probably seem empty because I don't think they have opened yet--or have only recently opened.  Riviera is still under construction so doesn't really count.  Lumpini Seaview  has been open for a few years now and has done ok as far as sales go--it may seem empty because some of the units  are owned by Bangkok residents who only use them occasionally.  This is true for a lot of condos popular with Thais--like Baan Plai Haad, Lumpini Park Beach, some of the older condos in Wongamat, etc.   It's important to remember that not all developers are struggling to sell their condos.  Good highrise developments in good locations by well-established developers, that deliver on schedule, are mostly doing ok in Pattaya. 

[janclaes47]

2 hours ago, newnative said:

Lumpini Seaview  has been open for a few years now and has done ok as far as sales go--it may seem empty

 

Not so long ago Lumpini Beach had a sales campaign, which lasted for quite some time, and was 2 for the price of 1.

 

Would any project that has a good customer base resort to such a practice?

[Destiny1990]

14 minutes ago, janclaes47 said:

 

Not so long ago Lumpini Beach had a sales campaign, which lasted for quite some time, and was 2 for the price of 1.

 

Would any project that has a good customer base resort to such a practice?

All depends what is their price for one.

[newnative]

6 minutes ago, janclaes47 said:

 

Not so long ago Lumpini Beach had a sales campaign, which lasted for quite some time, and was 2 for the price of 1.

 

Would any project that has a good customer base resort to such a practice?

I don't remember this sales campaign for Lumpini--not to say it never happened.  I think AD Grand Condo on Jomtien Second Road was advertising a 2 for 1 promotion on a billboard by the development at one point--I never checked into the details.  I think you need to look at more than a sales campaign before you draw any conclusions on a particular developer.  Lumpini, in my opinion, is a well-run, successful company.  They definitely are smart enough to do good promotions from time to time.  Running a sale is not always a sign of desperation with builders--or any other company.  In America most developers have close-out sales offering steep discounts when they have sold most of the units--they've made their profit and want to be done, close the sales office,  and move on to the next project.  I often wonder why that same practice isn't done more here. 

[newnative]

On ‎10‎/‎4‎/‎2560 at 8:37 PM, LennyW said:

Seeing the headline I thought maybe Sansri had purchased all the stalled, failed and abandoned projects around - with so much confidence...but no...just a puff piece, 100% sales, 7% rental yields, resales appreciating 15 to 20%, aye...right!!!

Actually, it's not a puff piece and the stats the gentleman cited jibe with my experience and observation.  The two Sansiri projects have done quite well and both are close to sold out.  I think Baan Plai Haad has some large 3 bedrooms in the 12-14MB range still to sell and a few 1and 2 bedrooms.  When I looked at 2 bedrooms a few months ago there were only a few still for sale.   The rental to owner ratios the gentleman mentioned also seem about right--The Base with its location and smaller unit sizes has a larger percentage of renters and investor units  than the more remote and more expensive Baan Plai Haad.