Floods Push Up Demand for Units in Pattaya

Demand for condominiums in Pattaya rose in the third quarter of this year following the increase in demand for a second home due to the floods, property agencies said.

Risinee Sarikaputra, associate director of research and consultancy, Knight Frank Chartered (Thailand), said that after the floods hit Bangkok and its suburbs, demand for residences in Pattaya and Hua Hin rose - to buy, as well as rent serviced apartments and condominiums - when their residence in Bangkok was hit by floods.

According to Knight Frank Thailand Research, the new supply of condominiums in Pattaya in 2011 was 10,547 units from 24 condominium projects. The majority of new condominiums supplied this year were concentrated in Jomtien Beach, representing about 69 per cent, or approximately 6,331 units. The new supply of sea-view condominiums represented about 60 per cent of new supply. The majority of the new sea-view condominiums, about 66 per cent, are located on Jomtien Beach. This is due to the availability of land in Jomtien as well as the possibility of developing high-rise buildings.

The uptake rate of sea-view condominiums has shown a positive sign, especially in the Jomtien area, representing about 60 per cent, followed by the North Pattaya area, as the selling price of sea-view condominiums in Jomtien was cheaper than that in North Pattaya. The selling price of sea-view condominiums in Jomtien was 16 per cent lower than those in North Pattaya. The major cost was the land, which was much more expensive in North Pattaya. The selling price of sea-view condominiums in North Pataya ranges from Bt104,000 per square metre to Bt150,000 per square metre, whereas the selling price of sea-view condominiums in Jomtien ranges from Bt75,000 per square metre to Bt120,000 per square metre.

Meanwhile, Raimon Land's research said that 26 new residential projects were launched in Pattaya, worth more than Bt30 billion, in the first 12 months of this year. About half of the 14 projects are located in central Pattaya, while the rest are in South Pattaya, North Pattaya, and Jomtien.

The maximum demand in Pattaya is for condominium projects, focused on one-bedroom type with space utilisation of between 40-50 square metres. The demand for these projects comprises about 50 per cent of total supply and sales in the market. About 30 per cent of the demand is for studios, with space utilisation of 30-35 square metres, while the rest are for two-bedroom types, with space utilisation of more than 50 square metres.

The research said that more than half the customers who buy residences in Pattaya are locals who work in Pattaya, while the rest are foreign buyers seeking to own a second home in Thailand. Residences priced not more than 3 million are easier to sell in Pattaya.

Source: THE NATION 
25th November 2011