February 3rd, 2006, 06:52
[/url]Pattaya, one of Thailand┬┤s most popular holiday destinations for both local and foreign visitors, is less than two hours┬┤ drive from Bangkok and about one hour from the new Suvarnabhumi Airport. The residential condominium market in Pattaya is therefore expected to experience robust activity in the coming year, due to rising demand for residential properties and a general resurgence in the property and tourism sectors.
Since the announced opening of the new Bangkok airport, Pattaya has begun to see the widespread construction of new retail facilities such as shopping centres and a movie complex, international hotel chains, and lifestyle facilities such as golf courses. All of these will benefit Pattaya and broaden its appeal as a convenient leisure home location.
Until now, a lack of new condominium projects launched since 1994 has resulted in a limited supply, particularly in Grade A stock. Most of the businesses in this sector over the past five years have focused on the resale of units in existing projects that are more than 10 years old, and the market only really began to see the emergence of a new supply in late 2004.
A number of new grade A condominium projects are now being actively marketed in Pattaya. These include two Northshore developments by Raimon Land Plc, and Le Royale Beach project, which is being developed by Wise Power Land Co. Ltd. Most new projects are expected to complete construction over the next two years and will cater to a broad market that stretches from middle-end to high-end segments, with selling prices in the region of 60,000 тАУ 75,000 baht per square metre. These are high-rise condominium buildings located along North Pattaya and Jomtien beaches, respectively. In fact, over half the Grade A projects are located in Jomtien, with the ambitious new development known as the тАШThe SailsтАЩ paving the way for further growth.
David Gray from East Coast Real Estate believes the outlook remains extremely positive for PattayaтАЩs condo market. тАЬ2006 looks to be a very optimistic year for condos,тАЭ he told TPR. тАЬThere are several new developments that will come on line in March and April. There are also several apartments that are 95% sold already. WeтАЩre talking about some very high end projects here, for example, Northshore. Developments like this are doing extremely well, so IтАЩd say the future looks bright, with excellent sales. Our own company recently sold Bt100 million worth of property in just a week.тАЭ
Demand for condominiums in Pattaya is coming from not only end-users, but also expatriates renting out units. Given the strong demand and limited supply, there are still opportunities for developers to start new projects. However, new projects will need to match increasingly high buyer expectations in terms of location, design, quality and price. Those which meet the exacting standards of their customers will also have to offer a good yield for owners who either sell or rent out their units. тАЬSomething thatтАЩs interesting,тАЭ says Gray, тАЬis that locals are buying the condos too. ItтАЩs not only people from outside Thailand who are buying because these properties represent very good investments. There are a lot of resales too; an investor who put down 20 per cent and bought a condo for Bt4.5 million was recently able to sell it for 5.7 million, thereby almost doubling his money.тАЭ
Other International companies like CB Richard Ellis also expect to see developers launching new residential condominium and resort home projects in Pattaya and stronger interest among buyers, both for owner occupation and investment. Pattaya is at the beginning of a new property cycle, they say, and as demand continues to improve the residential market is becoming attractive for both local and foreign investors.
Full article [url=http://www.property-report.com/archives.php?id=182&date=0602]Asia Property Report online
Since the announced opening of the new Bangkok airport, Pattaya has begun to see the widespread construction of new retail facilities such as shopping centres and a movie complex, international hotel chains, and lifestyle facilities such as golf courses. All of these will benefit Pattaya and broaden its appeal as a convenient leisure home location.
Until now, a lack of new condominium projects launched since 1994 has resulted in a limited supply, particularly in Grade A stock. Most of the businesses in this sector over the past five years have focused on the resale of units in existing projects that are more than 10 years old, and the market only really began to see the emergence of a new supply in late 2004.
A number of new grade A condominium projects are now being actively marketed in Pattaya. These include two Northshore developments by Raimon Land Plc, and Le Royale Beach project, which is being developed by Wise Power Land Co. Ltd. Most new projects are expected to complete construction over the next two years and will cater to a broad market that stretches from middle-end to high-end segments, with selling prices in the region of 60,000 тАУ 75,000 baht per square metre. These are high-rise condominium buildings located along North Pattaya and Jomtien beaches, respectively. In fact, over half the Grade A projects are located in Jomtien, with the ambitious new development known as the тАШThe SailsтАЩ paving the way for further growth.
David Gray from East Coast Real Estate believes the outlook remains extremely positive for PattayaтАЩs condo market. тАЬ2006 looks to be a very optimistic year for condos,тАЭ he told TPR. тАЬThere are several new developments that will come on line in March and April. There are also several apartments that are 95% sold already. WeтАЩre talking about some very high end projects here, for example, Northshore. Developments like this are doing extremely well, so IтАЩd say the future looks bright, with excellent sales. Our own company recently sold Bt100 million worth of property in just a week.тАЭ
Demand for condominiums in Pattaya is coming from not only end-users, but also expatriates renting out units. Given the strong demand and limited supply, there are still opportunities for developers to start new projects. However, new projects will need to match increasingly high buyer expectations in terms of location, design, quality and price. Those which meet the exacting standards of their customers will also have to offer a good yield for owners who either sell or rent out their units. тАЬSomething thatтАЩs interesting,тАЭ says Gray, тАЬis that locals are buying the condos too. ItтАЩs not only people from outside Thailand who are buying because these properties represent very good investments. There are a lot of resales too; an investor who put down 20 per cent and bought a condo for Bt4.5 million was recently able to sell it for 5.7 million, thereby almost doubling his money.тАЭ
Other International companies like CB Richard Ellis also expect to see developers launching new residential condominium and resort home projects in Pattaya and stronger interest among buyers, both for owner occupation and investment. Pattaya is at the beginning of a new property cycle, they say, and as demand continues to improve the residential market is becoming attractive for both local and foreign investors.
Full article [url=http://www.property-report.com/archives.php?id=182&date=0602]Asia Property Report online