Pattaya prices take off

Market rides on strong foreign investor interest.

Resale prices of luxury condominium projects in Pattaya have surged by up to 100 per cent due to strong demand from foreign
investors, especially from the UK and Russia, according to a research report publish on the 7th March 2008.

The report said that demand for luxury condominium projects located close to Jomtien Beach, Wong-Amat Beach and Pattaya Bay
had risen strongly while new project launches have been limited.

As a result, the resale price of luxury condominium projects in Pattaya have increased from an average of Bt74,000 per square
metre in 2005 to Bt150,000 in the first two months of this year.

Investors who are interested in snapping up properties in Pattaya are mainly from Russia, the UK, Australia, Germany, and Sweden.

Half the buyers of Pattaya properties treat it as an investment, which generates returns of between 8 to 10 per cent a year, while the other half invest in them as a second home the report stated.

With strong demand in the market, a number of property firms have launched new residential projects.

According to the report, 19 new luxury condominium projects, or 5,177 units, were launched last year worth nearly Bt30 billion. Some are going through the construction phase and this year about 281 units would be completed. About 1,115 units are being constructed now and will be completed next year or over the next two years.

Some 3,781 units would be built over the next two years, to add to the booming Pattaya property market.

The Nation – 8th March 2008