Condo market strong in Pattaya
Research by Knight Frank Thailand shows that the demand for condominium projects in Pattaya is showing strong growth as property firms from Bangkok expand their business in the seaside city.
The research said that there were approximately 2,491 units sold in Pattaya during 2011, a 120-per-cent increase over 2010. Unfortunately, the sales decreased from 52.5 per cent in 2010 to 41 per cent in 2011 due to the tremendous volume of supply.
The dynamics of the market is changing remarkably fast in Pattaya as one-bedroom units and smaller ones make up 70 per cent of all new property in the market. This trend looks set to continue with the emergence of one-bedroom hybrid units below 40 square metres. Rising construction costs would normally be driving prices up, but prices remain stable and unit sizes and specifications are, instead, being toned down, such is the competitive nature of the market.
For almost two years, Thais have led the pack as the biggest buyers of new residential units in the eastern seaside resort. Pattaya has been experiencing unprecedented growth and the properties being developed are quickly finding buyers. The future supply of condominiums in Pattaya will be concentrated in the Jomtien area as there is more land available in Jomtien than elsewhere in Pattaya.
Regardless of what buyers are looking for, more choices are in the pipeline as many condominiums are being launched this year with construction to start early next year and slated for completion by the end of 2014.
According to a survey by The Nation, property firms, including LPN Development, SC Asset Corporation, Sansiri and Sena Development plan to launch new condominium projects in Pattaya worth a combined over than Bt10 billion.
Frank Khan, head of residential department, Knight Frank Thailand, said that Pattaya has jumped a lot in the past seven years from being a low-class city to one that offers many options – not just fun – to its visitors. The opening of big shopping malls like Central Festival Pattaya marked a big jump for Pattaya City. Moreover, the reverse coastal erosion has restored a stretch of beach from North to South Pattaya, about 35 metres wide. The beach width was earlier only 3.5 metres. The length of the beach will be approximately 2.7km. The cost of the investment is about Bt387 million. During 2011, a record number of new condominiums (sea view only) were launched in Pattaya with approximately 7,888 units in 13 condominium projects.
