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Pattaya on rise despite FBA curbs |
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Pattaya is on the upward trend of the property cycle
although the growth of the overall property market in the resort city is below
projection due mainly to the Foreign Business Act amendment, according to the
international consultant firm CB Richard Ellis.
Aliwassa Pathnadabutr, CBRE's managing director said the total condominium stock
in Pattaya including Condotels was about 24,800 units in 2006 and was expected
to reach 27,800 units by the end of this year. Less than 10% of the total
condominium stock is the luxury supply.
CB Richard Ellis expects more launches of condominium projects in Pattaya. Among
the recent launches of luxury properties are the 543-unit White Sand Beach on
Jomtien Beach and The Chateau Jomtien in the Pratumnak area, housing 317 units
in four towers.
She said the residential market in Pattaya faced challenges from strict
enforcement of the property ownership law that limits foreign ownership in a
condominium project to 49%. Many developers, however, have found that either the
demand from foreign buyers exceeded the limit or the majority of potential
buyers are foreigners.
''Then the challenge for developers is to sell the 51% Thai quota of a
condominium. To effectively strengthen this resort market, the foreign ownership
quota should be enlarged,'' said Ms Aliwassa.
The company viewed that Pattaya was Thailand's most accessible resort
destination.
Its villa segment is growing in line with the tourism industry and the rising
trend of second and retirement homes in Thailand. There are 17 luxury villa
projects, comprising 626 units, being marketed in Pattaya as of the third
quarter of 2007, and about 54% have been sold.
Most of the projects are located next to a beach or within proximity of the
Jomtien Beach. Prices of these luxury villas ranged from 6.8 million baht to 60
million baht. However, as a result of increasing land prices, more villa
projects are expanding to Na Jomtien and Bang Saray to the east of Sukhumvit
Road.
She added that the 9%-per-year average growth rate in tourist arrivals to
Pattaya was a positive sign for both the hotel and residential markets.
Nusara Banyatpiyaphod, president of Ocean Property Co, the Ocean Portofino
condominium in Pattaya said real estate markets in the vicinity of
Pattaya-Jomtien grew steadily of 10% per year.
The condominium market is categorised into three price ranges: five million baht
(74%), 3-5 million baht (11%) and 5-10 million baht (2%).
Bangkok Post
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