Despite a significant surge in Pattaya’s land prices, many developers continue to enter the already crowded residential front in Pattaya property market.
Those plots that command seaviews and beaches draw the most interest, from Wong Amat in North Pattaya to Pratamnak Hill on South Pattaya and further out along Jomtien Beach. Alan Lin, CEO of Harrison Realty said the residential market in Pattaya continues to experience a robust growth, with growth averaging between 15 and 20 per cent in the last two years. Currently, there are 300,000 square metres of condominium space available, double what was available two years ago.
Condominium units account for 60 per cent of the total residential properties being sold in Pattaya today. Lin is confident that the Grade A or luxury condominium market will remain strong due to limited supply as many projects are still under construction. The supply will increase by 10-15 per cent, or about 60,000 square metres. However, the booming residential market also fuels land prices, especially at beachfront areas where they sometimes reach Bt20 million to Bt30 million per rai compared to BtlO million three years ago.
Lin added that market for luxury condominiums in Pattaya is more attractive for investors than those in Hua Hin property market because of higher yield on investment. That is a reason why Pattaya condominiums garner good sales from foreign investors.
According to a Raimon Land research report, Pattaya condominium projects account for 28 per cent of total sale value in resort destinations, or Bt1.97 billion. It is diverse and prices can vary from Bt30,000/sqm to as much as Bt160,000/sqm. Views, beach front access, finishing, fit-outs and more importantly the site’s location in Pattaya, are key factors that determine condo prices.
Pattaya condominiums now enjoy a higher take-up rate in off-plan developments, as evident by the fact that 61 per cent of units launched have been sold. The higher take-up rate is seen in projects being developed by well-known builders who demonstrate credibility and integrity in product delivery and construction progress. Besides the renewed interest in new condominium projects most realties in Pattaya have been focusing on the resale of units in projects that are more than 10 years old, and the market only really began to see the emergence of a new supply.
Apex Development Plc, formerly known as Sun Tech Group, recently announced a Bt4 billion investment to develop the White Sand Beach residential complex on a56-rai plot of land on Jomtien Beach. The project will comprise two high-rise beachfront condominiums – named “The Spinnaker” -with a total of 303 units. The other tower – Island Lagoon – will be a low-rise condominium of 240 units and will house a five-star hotel with 300 rooms.
The Spinnaker room price will start at Bt95,000/sqm, while The Island Lagoon starts at Bt75,OOO. Construction is due to start in January and expected to be completed within 24 months for the low-rise condominiums and 36 months for the high-rise condominium and hotel. Raimon Land will spend more than Bt8 billion to expand more projects in tourist destinations this year and next year, especially in Pattaya and Hua Hin after its market research shows strong demand in those areas. It is now constructing its North Point high-rise condominium project on WongAmat Beach featuring towers of 54 and 46 stories, which comprise a total of 374 units.
A number of new grade A condominium projects are now being actively marketed in Pattaya. These include condominium developments by Raimon Land and the Le Royale Beach Condominium, built by Wise Asset. Most of the new projects cater to abroad market ranging from middle to high-end buyers. La Royale has been successful in obtaining bookings for over 80 per cent of its freehold apartments since it was launched two years ago. It features a %-storey condominium with about 150 units.
The tower is completed and show apartments are available for viewing. These are high-rise condominium buildings located along North Pattaya and Jomtien beaches, respectively. In fact, over half the GradeA projects are located in Jomtien, with the ambitious new development known as the ‘The Sails’ paving the way for further growth. Other international companies like CB Richard Ellis also expects developers launching new residential condominium and resort home projects in Pattaya, stirring more interest amongst buyers, both for owner occupation as well as investment purposes.
CB Richard Ellis earlier this month officially opened its branch office in Pattaya in response to the growing market.
A recently launched condominium project in Pattaya is The Chateau Jomtien. It is situated in the Pratumnak area, housing 317 units in four towers. This exclusive condominium development was completed. Given the strong demand and limited supply of high quality units, prices have been increasing.
The average price of I a grade-A high-rise condominium at prime beachfront for viewing. 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 ‘The Sails’ paving the way for further growth. Other international companies like CB Richard Ellis also expects developers launching new residential condominium and resort home projects in Pattaya, stirring more interest among buyers, both for owner occupation as well as investment purposes. CB Richard Ellis earlier this month officially opened its branch office in Pattaya in response to the growing market.
A recently launched condominium project in Pattaya is The Chateau Jomtien. It is situated in the Pratumnak area, housing 317 units in four towers. This exclusive condominium development was completed. Given the strong demand and limited supply of high quality units, prices have been increasing. The average price of a grade-A high-rise condominium at prime beachfront locations is now between Bt85,OOO and Bt110,OOO per square metre.
CB Richard Ellis believes Pattaya is now riding the rising wave of a new property cycle as demand continues to improve, and expects to see more new residential condominium and holiday-home projects in Pattaya. The villa market in Pattaya just started to be active as a result of the growth in the tourism industry and the rising trend of second and retirement homes in Thailand. There are l7luxuryvillaprojects, comprising 626 units, being marketed in Pattaya, and about 54 per cent have been sold. Most of the projects are located next to a beach or within proximity to the beach. Prices of these luxury villas ranged from Bt6.8 million to Bt60 million.
More than half of all villas in Pattaya are located on Jomtien Beach. However, as the result of increase in land prices, more villa projects are expanding to Na Jomtien and Bang Sarey to the east of Sukhumvit Road. Aliwassa Pathnadabutr, managing director of the CB Richard Ellis said that Pattaya is on the upward trend of the property cycle although the growth of the overall property market in Pattaya is less than expected, mainly due to the Foreign Business Act amendment issue. The luxurious Lake Condo,at the Phoenix Golf Club in Pattaya opened for reservation last May.
The project features two low-rise buildings with 7 floors, offering, 2- and %bedroom condominiums and penthouses. The project developer, Kudu Company, expects the project to be completed with prices starting at Bt75,OOO per square metre. The latest development to hit the market was launched by Daika Estate. It is a luxury beachfront condominium project named The Sanctuary Wong Amat. Bookings opened on November 10 and the project caters for both Thais and foreigners out for exclusive residential and recreational condominium living. The project, worth more than Bt2 billion, is scheduled for completion in the next one and a half-year.
The project features two low-rise buildings of only 7 stories, offering a total of172 units,with each providing a usable areaofgo-300 square metre for one to five bedrooms. Prices range between Bt4 million up to Bt30 million, or Bt60,OOOBt140,OOO per square metre. Located on a 9-rai plot of land on Wong Amat Beach in North Pattaya, it is unique, has privacy and provides for a comfortable living ambience. The project is designed in a tropical contemporary resort style truly focusing on modern and comfortable living.
A private beach is adjacent to the project. Niphon Atichartrakarn, managing director of Daika Estate said the project employs a tropical-modern style, emphasising comfort with every unit having seaviews. “We don’t focus on the number of rooms. That’s why we develop the low-rise buildings which is equipped with a large common area covering more than 60 per cent of the project for various facilities. Another strong point is the project will provide special facilityto ensure the elderly will be comfortable and safe’’, said Niphon. Meanwhile, Lin’s group acts as sole agent for The Sanctuary at Wong Amat. He expects the project would be sold out in a year. It is now 20 per cent booked. “We’re also organising a campaign to sell the properties in Singapore and Hong Kong, said Lin.