Best real estate Pattaya

The majority of condominium projects in the Pattaya area, accounting for 75% of the total market supply, are in the medium segment Grade C. Most of units are studios ranging in size from 30-50 square meters and are priced in the range of 1-2 million Baht.

However, higher grade, A and B properties have started to emerge in the Pattaya and Jomtien areas. These are developments with better access, superior facilities, generous parking lots and professional construction delivery. The difference between Grades A and B are usually in terms of their sea views.

The Eastern Seaboard has become an industrial hub, comprised of 12 industrial estates close to a deep sea port and the new international airport. There are approximately 10,500 expatriates (up by 19% from 2005) working in the Eastern Seaboard, including Chonburi and Rayong provinces (source: Ministry of Labour 2005). Additionally, a large number of permanent residents reside in the area on business and retirement visas.
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Since 2003, over 5,000 condominium units have been launched on the Pattaya market. 72% of these have been in the low-end segment (under 3 million Baht). However, we have noticed an increase in Mid-to-High developments (prices in the range of 3 to 10 million Baht) in the last six months, representing 18% of total units.

Condominiums with premium developments are still limited, representing about 10% of the overall condominium market. The majority of units in these projects have nice sea views, generally beach front, and a full-range of facilities and prices are over 10 million Baht. Some developers have already expressed their intentions to launch projects in the premium market before the end of 2007.
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If luxury condominium development is attracting buyers from Bangkok and beyond, what about the housing front? Unlike condominiums, housing development has continued pretty much unabated over the past few years. The number of housing estates around Pattaya and Jomtien must now be approaching 150 in total and there have been numerous new launches recently.

The Pattaya area is seeing many new top quality developments coming onto the market. Packages start as low as a few million Baht but many could cost up to ten million Baht and beyond. Real estate agents relate to the fact that the housing market has been strong for the past two years with average house prices moving up between 5-25 per cent each year. The best properties have doubled in price each year whereas there has been no movement in the poorer developments.

Still, a choice has to be made. A standard 150 square metre two-bedroom condo unit in one of the better new projects (with sea view) will cost well over 10 million Baht. The same money will buy a four-bedroom house far from the sea of over 400 square metres with its own swimming pool. The same house close to a beach would cost double. It is clear that many retirees are going for a bigger house away from the sea over a seaside condo.

The rental market has not followed these increases, with rents remaining stable.
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Pattaya is the closest of all the prime destinations from Bangkok, about a 2-hour drive, approximately 150km. Thanks to the New Bangkok International Airport, it now occupies a central position and is fast changing from a Bangkok weekend resort and bar centre, evolving into a major retirement destination.

Jomtien, located 20 minutes to the south of Pattaya, offers an alternative with a more local flavour. Available land in Jomtien is plentiful, but this is changing as developers move into the area due to increased costs and fewer development opportunities in Pattaya. Another more viable alternative may be the North Pattaya (Naklua-Wong Amat) area, which is closer to Pattaya City and has nicer beaches and overall better facilities.
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According to Raimon Land condominium developer, Pattaya started a new property cycle in 2005, after a relative lull beginning in the mid-90s. Prices in quality developments have already reached those seen in Bangkok in the condominium sector. We believe this trend will continue, due to limited supply in light of strong demand for such properties.

The New Bangkok International Airport (NBIA) will improve transit from Bangkok to Pattaya, bringing more business into the Eastern Seaboard. Several major hotels are already under construction or renovation. Hospitals and retail outlets are expanding and infrastructure is improving. Less than 250 condominium units will be completed in 2006 with around the same amount the following year. This shortage in new completed supply should pressure prices upwards for 2-3 years.

As for the residential housing market, and despite a rapidly-maturing upswing in terms of product and pricing, value for money seems to remain excellent for now. The property company CB Richard Ellis (CBRE) has the same point of view as there are several factors that support this rise in demand, such as the opening of the new Suvarmabhuni airport, increased shopping and recreational locations and better lifestyle facilities.
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