Amid strong demand in Pattaya, listed property firms are launching condominium projects worth more than Bt10 billion, offering units priced lower than Bt3 million.

According to a Nation survey early this week, several listed property firms plan have been inspired to launch condo projects in Pattaya after LPN Development successfully sold out its debut condominium project in the city with units priced lower than Bt3 million.

Quality Houses plans to launch its first condominium project, offering units priced lower than Bt3 million in South Pattaya this year, worth nearly Bt1 billion. Raimon Land, which has experience of developing luxury condominiums in Pattaya, launched its first condo project Unixx, in South Pattaya worth Bt2.4 billion, with condos priced lower than Bt3 million.
After its success last year, LPN Development has launched its latest condominium project, Lumpini Ville Nakra-Wongamart, worth Bt2.5 billion. NC Housing also plans to launch its first condominium project in Pattaya in this year. TCC Capital Land Co sees Pattaya as a potential area for developing a residential project.
Sena Development plans to launch a mixed-use project combining condominium, serviced apartment and shopping centre at Pattaya after acquiring a major stake in T Treasury Holding, the owner of the Pattaya Country Club and Resort in Chon Buri province, for Bt590 million at the end of last year. “We see a strong demand to buy residences in Pattaya as a second home after last year’s floods hit Bangkok and its suburbs,” Sena Development director Kessara Thanyalakpark said.

The targeted buyers in Pattaya are locals rather than foreign investors, who can afford units priced at lower than Bt3 million.
They include people from other provinces who have moved to work in Pattaya, and Bangkok and suburban buyers who want to buy a second home or a vacation residence. “Most of our customers who bought our condominiums last year are locals with the intention of living there rather than as an investment,” LPN Development managing director Opas Sripayak said.

He added that people who move from other provinces to work in Pattaya have to pay average rent of Bt6,000-Bt8,000 a month in Pattaya. When they have an opportunity to buy a condominium priced lower than Bt3 million per unit, it matches their purchasing power. “This will replace the rental market,” he said.

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.

from :