Bangkok--Sep 27--CB Richard Ellis
The residential condominium market in Pattaya is expected to experience robust activity in the coming years due to rising demand for residential properties including condominiums and single houses, according to international property consultants CB Richard Ellis.
Pattaya, one of Thailand’s most popular holiday destinations for both local and foreign visitors, is easily accessible, being less than two hours’ drive from Bangkok and about one hour from the new Suvarnabhumi Airport.
According to Ms. Aliwassa Pathnadabutr, Managing Director of CB Richard Ellis (Thailand) Co. Ltd., the opening of the new airport, such retail facilities as shopping centres and a movie complex, international hotel chains, and lifestyle facilities such as golf courses, will benefit Pattaya and broaden its appeal as a convenient leisure home location.
“We are seeing more people buying houses and condominium units in Pattaya as first homes, as second homes for leisure and relaxation, and as retirement residences. The availability of retail outlets, recreational activities, health services, and international schools has increased Pattaya’s attractiveness to prospective long-term residents,” said Ms. Aliwassa.
With the continuing improvement in the overall economy in Pattaya, demand for new residential projects has been increasing, particularly for condominiums. This has been proven by the good sales performance of projects that were launched over the past nine months.
The lack of new condominium projects launched since 1994 has resulted in a limited supply, particularly of new grade A stock. Most transactions over the past five years have been resales of units in existing projects that are more than 10 years old, and the market has only started to see new supply in late 2004.
According to the latest survey of residential condominium projects in Pattaya conducted by CB Richard Ellis’ research team, there are a number of new grade A condominium projects being actively marketed, including Northshore developed by Raimon Land Plc, and Le Royale Beach developed by Wise Power Land Co. Ltd. They are expected to complete construction over the next two years. These projects cater to a broad market from the middle-end and high-end segments, with selling prices in the region of 60,000 — 75,000 baht per square metre. They are both high-rise structures, located along North Pattaya and Jomtien beaches, respectively.
Demand is coming from not only end-users, but also expatriates renting units. Statistics from the Alien Occupational Control Division of the Department of Employment show that there were 4,870 expatriates with work permits in Chonburi as of the end of 2004, a 30.5% increase year-on-year from the 3,731 expatriates in 2003. This excludes permanent residents.
Given the strong demand and limited supply, there are opportunities for developers to commence new projects in Pattaya and for investors renting out their units. However, those projects need to match purchasers’ requirements in terms of location, design, quality of product, and price.
CB Richard Ellis expects to see developers launching new residential condominium and resort home projects in Pattaya and stronger interest among buyers, both for owner occupation and investment.
The most popular areas for developing city residential projects are Pattaya beaches up to Jomtien beach, while the good location for resort-style developments is between the Ambassdor Jomtien Hotel and Bang Sarey where the quiet beachfront location ensures privacy for residents.
“We believe that Pattaya is at the beginning of a new property cycle as demand continues to improve. The Pattaya residential market is also attractive for both local and foreign investors who are looking at rental returns due to continued growth in the number of expatriates in Pattaya,” said Ms. Aliwassa.
About CB Richard Ellis
CB Richard Ellis (NYSE:CBG), a FORTUNE 1000 company headquartered in Los Angeles, is the world's leading commercial real estate services firm (in terms of 2004 revenue). The company serves real estate owners, investors and occupiers by offering strategic advice and execution for property leasing and sales; property, facilities and project management; corporate services; debt and equity financing; investment management; valuation and appraisal; research and investment strategy; and consulting. Including partners and affiliates, the company has over 300 offices in more than 50 countries around the world.
CB Richard Ellis established an office in Bangkok in 1988 and in Phuket in 2004. CB Richard Ellis (Thailand) Co., Ltd. has grown to be a leading real estate services provider, offering a full range of services including sales and leasing for all types of property, property and facilities management, valuation and advisory, and research and consulting. For more information, visit the company's website at www.cbre.co.th.
* Includes partner offices
For more information please contact:
Ms. Aliwassa Pathnadabutr
Managing Director Tel. 02 654 1111
Ms. Ngamjai Jearrajarat
Corporate Communications Manager
Tel: 02 654 1111 Ext. 522
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