Developers have expanded into the condominium market in tourist destinations, especially resort beaches in Chon Buri including Pattaya, where more than Bt200 billion in projects will have been launched this year to date and land prices have doubled in five years.
According to a survey of the Government Housing Bank’s Real Estate Information Centre (REIC), over 200 condo projects worth Bt170 billion have already been introduced to the market as of the middle of this year.
CB Richard Ellis (Thailand) also reported that 41,000 condo units in Pattaya will be completed and delivered to customers this year and 50,000 units in the next two years. About 40 per cent of them are located in Jomtien, 20 per cent in Wong Amart, 20 per cent in central Pattaya, 13 per cent in Kho Pra Tamnuk and 7 per cent in Na Jomtiem.
About 60-80 per cent are located close to the beach.
Since 2012, projects have gone down market from luxury units to units priced not over Bt2 million.
“This means the customer target has changed from foreign buyers to domestic buyers who work in the area,” managing director Aliwasa Pattanathabutr said recently.
Samma Kitsin, director-general of the REIC, said condo supply in Pattaya-Chon Buri is the largest in the country outside Bangkok.
Last year saw 96,600 residential units enter the market in Pattaya-Chon Buri, of which 56,400 were residential condos that have been 66 per cent sold. The others are single family homes and townhouses.
Demand for residential projects in Pattaya-Chon Buri comes from both domestic and foreign buyers who work in industrial estates in the Eastern Seaboard and in the hospitality business in this province, he said.
“Most of our customers buy for occupancy, but some also buy for investment because demand for residences in Pattaya and Chon Buri shows strong growth from people who move their workplace from Bangkok to the Eastern Seaboard. They are both locals and foreigners,” she said.
Land prices rising
The rush to release residential projects in Pattaya-Chon Buri has pushed land prices up more than 100 per cent from five years ago.
Chana Nantachankul, managing director of Century 21 Realty Affiliates (Thailand), a real estate broker, said prices for land located close to the beach in Chon Buri have risen an average of 20 per cent a year over the last five years to Bt20 million per rai.
Wasan Kongchan, managing director of Modern Property Co, another sales agency, said land prices in Pattaya are going up because of both new condominium projects and the new mass transit route that will pass through the province under the government’s Bt2 trillion infrastructure scheme.
Land prices in Wong Amart have multiplied from an average Bt90,000 per square wah or about Bt36 million per rai five years ago to Bt350,000 per square wah or about Bt140 million per rai this year.
“When the government’s Bt2 trillion infrastructure project kicks off and is already completed, land prices will rise to Bt500,000 per square wah following the growth in demand,” he said.
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