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Pattaya high-rises soaring
Thailand Property Report
September 2008
A compared with the brisk sales of high-rise
apartments, only 30 percent of units in low-rise
condominiums have been snapped up. Low rise condominiums
tend be further away from the sea, and offer lesser views
of the ocean, says Ms. Aliwassa Pathnadabutr, Managing
Director of CBRE. Among low-rise units that were sold,
highest sales rates were recorded by properties selling at
or under Bt5m, in Pattaya town.
According to CBRE research, as a result of a number of
large recent launches, overall sales for Grade A
condominium projects in Pattaya stands at just under 40
percent as of Q2 2008. Total existing and future supply is
roughly 3,500 units. However, 50 percent of these units
have been launched since the beginning of 2007, which is a
factor in the low overall sales rate.
In terms of pricing, the highest sales rates were achieved
in less expensive projects, those priced at or under Bt5m.
In contrast, for high-rise projects, there appears to be a
strong high-end market as well, as almost half of units
priced at over Bt20m have been sold already.
There exists a wider range of pricing for low-rise units,
whereas all high-rise units covered in this survey were
priced at a minimum of Bt80,000-100,000/sqm. Recent rises
in construction costs, particularly the price of steel, an
essential material in high-rises, have served to push up
prices at both high- and low-rise developments in Pattaya.
Two- and three-bedroom units remain very popular in
Pattaya, as many buyers have families or prefer the extra
space, say CBRE. In many cases, purchases by such buyers
in Pattaya are intended as second homes. A limited number
of penthouse units are also being offered; however, sold
penthouse units account for only about 1 percent of the
number of total units sold in Pattaya.
With a total of 6.2 million tourist arrivals in 2007,
Pattaya continues to remain a popular tourist destination.
Tourist arrivals have almost doubled since 2000,
highlighting the continual development of Pattaya as both
a tourist destination for foreigners and a weekend getaway
for residents of Bangkok. A considerable share of the
activity in the Pattaya property market is driven by
Bangkok residents looking for a second or weekend home.
The second half of 2008 will see several more high rise
projects go on the market. According to Ms. Linda Ord,
General Manager of CB Richard Ellis Pattaya, "The new high
rise projects which are set to launch in the second half
of 2008 are all in prime locations, either absolute
beachfront or with great sea views and as such, are likely
to continue to outperform the low rise projects in terms
of number of sales in the mid to long term."
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