The Pattaya Property Market In 2010 - Green Door Enterprises

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[Published on 2010-01-13 in Property Newsby Chris Thompson]

The Pattaya Property Market In 2010

Pattaya is the premier area for property development on the eastern seaboard of Thailand. But it is not the only prime spot, projects in picturesque and peaceful locations, like the popular Jomtien area, highly sought after Pratamnak Hill, around scenic Mabrachan Lake and further along the coast at Sattahip are proving to be very sound investment opportunities.

With the 1997 Asian financial crisis, precipitating the collapse of Thailand's property market, the sector was a little stagnant for a number of years. But in recent years there has been tremendous growth, and due to favourable reports in numerous local and international publications, investing in property on the eastern seaboard is gathering more and more attention, from well-to-do Thais, foreign retirees, international companies and consequently, international property agencies.

In recent years, the eastern seaboard has become an industrial centre, made up of approximately 12 industrial estates, with Laem Chabang deep sea port nearby and the new international airport roughly an hour or so away. There are at least 10,500 expatriates working locally and in Chonburi and Rayong provinces, with a large number of permanent residents living in the area on business and retirement visas.

Real Estate in Pattaya has become one of the fastest growing and most sustainable industries

The Pattaya property industry is now well developed and quite sophisticated and with prices rising at one of the highest rates in South East Asia, it is looking extremely positive for profitable investment opportunities. Real estate development in Pattaya has become one of the fastest growing and most sustainable industries and looking at the number of property developments currently under construction are a clear indicator that this trend is set to continue. The Daika Estate Company has announced that it will start the construction of a new luxury condominium development at Wong Amat beach, north Pattaya, in the first quarter of 2010. The value of this new project is estimated to in the region of 2 billion Baht. The development will consist of at least 100 condominium units with an average price of 80,000 baht per square metre. Executive Director of the Daika Estate Company, Dr Suebpong Atichartakorn explained that due to the current lack of high-end condominium developments in Pattaya the company has been prompted  to continue its construction ventures in the area.

The buyers from Bangkok and all over the world, that are attracted to the many luxury condominium developments are also proving to be equally attracted to the housing market.  Housing development has continued steadily over the past few years. The number of housing estates around Pattaya and Jomtien are now in excess of 150 in total and there has been numerous new openings recently, with more on the way. Pattaya and the surrounding area are seeing many new top quality residential housing developments coming onto the market. Packages can start as low as several million Baht but many cost up to and far beyond ten million Baht. In fact the housing market has been strong for the past couple of years with average house prices increasing between 5 and 25 per cent each year. The very best properties have doubled in price each year. A standard 150 square metre two-bedroom condominium, with a sea view, in one of the new luxury apartment developments will cost in excess of 10 million Baht. The same amount will buy a four-bedroom house of over 400 square metres with its own swimming pool, in a tropical rural setting. The same house close to the  beach would cost at least double that. It is clear that many expatriates, with families, are going for a bigger house away from the sea rather than an ocean-side apartment.

The very best properties have doubled in price each year

According to Suwanna Buddhaprasart, the Senior Executive Vice President of Thailand's third largest developer, Quality Houses is expecting a 30 per cent rise in revenues during 2010, entirely due to rising demand. An article in the Bangkok Post published on 29th December 2009, reported that in 2010 local property developers will be allowed to provide mortgage services after the Financial Institutions Act of 2008 permitted them to offer mortgage loans as long as they do not raise funds from the public. Early this year the Secondary Mortgage Corporation, under president Duangporn Arbhasil, will meet leading property developers and three real estate associations to discuss implementing this process. The SMC mediates between banks, other financial institutions and investors to develop liquidity in the mortgage loan market through the issuing of mortgage backed securities. It plans to make a securitisation worth about 400 million to 500 million baht each for Kasikornbank and Kiatnakin Bank. If they are ready, "Mortgage companies operated by property developers are likely next year" she said. Also, to help stimulate the market, the government has reduced all taxes and fees to less than one per cent of declared value until April 2010 at least.

Land values in Pattaya have been consistently increasing over the past ten years and all the signs point to this trend continuing. All the relevant experts predict a very bright future indeed for Pattaya and the eastern seaboard.

Sources:

 

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