New condominium boom for Pattaya

Bangkok – A 20% increase in supply expected in 2010

2010 will see the skyline change in Pattaya city with a 20% increase in supply due by the end of the year according to the new Pattaya City Condominium Market Report for the first half of 2010 by Colliers International Thailand.
“Absorbing such an influx in demand will be challenging” pointed out Antony Picon, Senior Manager for Research & Advisory at Colliers. “However the Pattaya market is increasingly attractive to domestic buyers from Bangkok, drawn to areas away from Pattaya beach, such as Wong Amat” he added.

Colliers is the only international property services firm that has an office in Pattaya and Mark Bowling, Sales Manager of the Pattaya office remains bullish in the long term despite difficulties. “Like the rest of Thailand the recent troubles slowed down activity in Pattaya for a while but business is picking up considerably” he said. “Local buyers continue to be big players in the market, mostly looking for a second home away from Bangkok”.

Patima Jeerapaet, Managing Director of Colliers International Thailand noted the difference in buying patterns between Bangkok and Pattaya. “In Bangkok, foreign demand is targeted to the luxury market. However in Pattaya, foreigners essentially drive the lower end condominium market with developments over half a kilometer away from the beach” he commented. “Most of these buyers are retirees with limited capital and income so they can only afford units below 2 million baht, while the local buyers are often wealthy Bangkokians looking for luxury accommodation.”

Mark Bowling pointed out that the greying babyboomers would propel demand for mid-range to cheaper units for the rest of the decade although he was concerned more about the strength of the baht than political uncertainties. “The baht was in the mid-seventies to the British pound about four years ago but is now hovering around fifty, that seriously affects the spending power of many people who wish to buy properties in Thailand” he noted.

Antony Picon’s analysis for Pattaya going forward was of a property market in the process of maturing with a number of local developers firmly establishing themselves and the overall market segmenting itself with up market locations such as Wong Amat distinguishing themselves from other parts of Pattaya city. “The growth of the city overall is now leading to particular areas fashioning their own identities and this looks set to continue” he said.

Mark Bowling is convinced that the Pattaya property market will continue its robust growth over the next ten years. “ Pattaya is in amongst the industrial estates that are fueling Thailand’s economic growth and this is an important factor in its development” he pointed out. “Also with the new highway you can now get to Pattaya from Bangkok in less than 90 minutes and so the city will be a far greater attraction for those wishing to escape Bangkok for a day or two” he added. To highlight Mark’s confidence, Colliers have relocated their Pattaya office to a high profile location on Second road, opposite Central Festival Pattaya Beach in order to better serve their clients.

source : Colliers