The Pattaya condominium development market is in good health according to the latest market report from Colliers International Thailand. Supply of units in 2010 was the greatest since 1997 with around 4,700 being added and launches for last year were also strong with over 3,400 being introduced. However take up remains robust throughout all zones so the new supply is being absorbed well. "There are no concerns regarding a bubble in Pattaya as many are talking about in Bangkok at the moment", said Antony Picon, Associate Director of Research at Colliers. "Take up was high at around 70% in Jomtien which reflected the popularity of the lower end products on the market there" he added.
The new darling of the condominium scene in Pattaya is Cosy Beach located in the Pratumnak Hill area, according to Mark Bowling, Senior Sales Manager at Colliers Pattaya Branch located on Second Road opposite Central Festival. "Several high rise condominiums are either currently under construction or in the relatively early stages of sales and marketing" he said. The Cliff by Nova Group was the first to enter the race in late 2009 and has successfully sold approximately 70% of its 427 units in little over 12 months, "a fantastic achievement taking into account the economic climate during that period", added Mr. Bowling.
Following on from the success of The Cliff, Nova Group recently introduced the similarly priced Legend on Cosy Beach, which together with five other proposed high rises in the same area, will increase the supply hugely in this hot spot by several thousand units between 2012 and 2013. Wongamat will also fuel future supply for 2013 with the introduction of three large scale luxury projects The Palm, Zire and W Tower.
The success of Pattaya stems from a number of factors maintains Patima Jeerapaet, Managing Director of Colliers, ranging from the introduction of retail outlets such as Central Festival shopping mall, a wider choice of trendy entertainment and dining venues, faster access to Bangkok and an increasing number of family friendly tourist attractions. "That is why many Thais are now purchasing property in the city like never before", he added.
Mr. Bowling was also keen to point out the number of local developers who are now well established in Pattaya, which provides buyers with confidence when purchasing off plan. "Local developers such as Nova Group, Heights Holdings, Iguana, View Talay and Rattanakorn Asset have a strong portfolio of already constructed products", he said. "Also two well known listed developers, Raimon Land and Major Development, are engaged in the market here and for others the city is appearing on the radar screen", he added.
Despite the continued strength in the Baht foreign buyers from the Euro zone, United Kingdom and USA continue to buy property in Pattaya in large numbers. Nevertheless spending power has been curbed with the most popular price range being between three to six million Baht. Mr Bowling added "There is plenty of availability in this market segment as we see designers and architects have given much thought to innovatively maximizing limited floor space more efficiently thus reducing sales prices without sacrificing location, facilities and overall quality".
The Russian market has become a force to be reckoned with especially in Cosy Beach and Wong Amat. Growth in tourism from India and Middle East also presents an opportunity but one for the future claims Mr. Bowling. "They mostly have a huge desire to buy property here, but are still very cautious and many have modest budgets. I do however see these countries becoming super powers on the Pattaya property scene in the near future, just as the Russians started off slowly several years ago" he explained.
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