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The growth in Pattaya's property market in just the last two years is nothing
short of astonishing. There are a number of factors that have caused in this
growth, such as the economic strength of the Eastern Seaboard, but none has been
more important than tourism.
As an industry, tourism has created international awareness and prosperity,
resulting in the establishment of impressive five-star infrastructure assets
particularly in terms of transport, health and hospitality, which are directly
benefiting the property industry today.
Pattaya has long been the biggest tourism destination for Thailand and continues
to be so with an estimated 6.85 million visitors expected to have arrived in
2007, capping an increase rate of almost one million visitors every two years
over the last five years.
Thais, who for years have travelled to the beach resort for weekends, remain the
dominant group representing between 20% and 25% of total visitors.
The biggest change the destination is experiencing is the surging volume of
visitors from Russia. From January to June 2007, a total of 558,608 Russians
visited Pattaya, by far the biggest overseas visitor source, and a huge increase
over the 482,587 arrivals from the destination in the whole of 2006.
Visitor arrivals from South Korea, China and India also climbed significantly,
by 81%, 25% and 51% respectively.
The tourism arrival profile directly reflects the nationalities who invest in
Pattaya from around the world, with Russian buyers topping the list of investors
in Raimon Land projects in 2007. They represented a sold value of almost 250
million baht or 22% of the total value of international investment with our
company in Pattaya.
The Thai market continues to understand and profit from Pattaya too, with
property investments totalling more than 200 million baht in 2007 in Raimon Land
projects representing 19% of total investment. This is followed by the UK and
Australia who each make up a further 10% and Germany with 6% to comprise the top
five investor countries last year.
This should not obscure the diversity of investor markets in Pattaya, with the
United States, Sweden, China, Estonia and Ireland all significant investors with
a total of 1.1 billion baht invested with Raimon Land in Pattaya in 2007.
The strength of the destination, though, is not just about numbers. Much of
Pattaya's allure is as a lifestyle destination due to the wide choice of upscale
leisure activities that can be enjoyed throughout most of the year.
Pattaya's ability to offer a host of international sports and leisure
activities, combined with all the conveniences of a modern and cosmopolitan
city, now just 90 minutes from Suvarnabhumi Airport, is attracting investors
sold on the destination's tropical lifestyle.
One example is the rise in the international yachting and sailing scene, with
the 2007 Top of the Gulf Regatta attracting more than 500 sailors and some 250
vessels.
The regatta was headquartered at Jomtien's Ocean Marina Yacht Club, one of
Asia's top marinas. It includes a condominium complex, hotel and yacht club, and
is capable of handling 500 yachts in the water and 200 in drydock. Further plans
include the construction of the 32-storey San Mario Condominium with a 51-room
hotel.
This type of luxury accommodation development characterises the more upmarket
trend in Pattaya, where new hotel projects will result in a 50% increase in
five-star room inventory over the next two to three years. In the last quarter
of 2007, we witnessed the opening of Amari's Orchid Resort and Tower in North
Pattaya, while Centara, Hilton, Movenpick, InterContinental and Le Me{aac}ridien
all plan to open upscale hotels and resorts between 2008 and 2010.
The development of a former beachside resort into a dynamic city offering an
active lifestyle on its doorstep is a compelling investment for many
nationalities and it is also something that has not been lost on the host of
retirees investing in the destination.
Tourism has blazed the trail for much of this to happen. Now it is the turn of
property developers to build on this platform, contribute to the local economy
and to the happiness of investors, and those who want to live in the destination
in the winter months.This is the first in a series of three articles that draws
on research by Raimon Land detailed in the upcoming publication, 'Why Invest ...
Pattaya'. To reserve a copy please contact Raimon Land Research
source: Bkk Post
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