Demand rising in vibrant Pattaya condo market

Demand rising in vibrant Pattaya condo market

The average take-up rate of new condominium units launched in the Pattaya area in the first half increased slightly to 75%, with Pratamnak and Na Jomtien the most popular locations.

Surachet Kongcheep, associate director at property consultant Colliers International Thailand, said the take-up rate in these two locations rose by 7% from the second half of 2012, while the remaining locations including Pattaya City and Jomtien had a slight decrease.

Many new condo projects were launched in Jomtien and Pattaya City in the first six months, which affected average take-up rates. Some projects in these areas introduced more than 1,000 units.

In Pratamnak, the take-up rate improved from 71% to 76%, while in Jomtien it rose from 75% to 81%.

"The second half is usually the high season for Pattaya. We expect the take-up rate will increase significantly from the first half," Mr Surachet said.

Visitors from emerging markets such as India and China have started to show great interest in the Pattaya market.

As demand from these countries continues to grow, Indians and Chinese buyers could become as numerous as Russian buyers, who have increased each year over the past decade.

The Russian market continued its resilience during the first half as Russians were apparently less affected by global economic problems.

But buyers from the US, Britain and other European countries were not as evident as in previous years.

Most condo projects launched in the last 12 months focused on mid-range to low-end buyers, though there were some exceptions in the upper end market that also reported strong sales figures.

The average selling price in Wong Amat remained the highest in the area. Most units in Wong Amat were luxury and nearly complete or ready to occupy, while most in Jomtien were mid-range to low-end, targeting budget buyers.

The average price in Jomtien in the first half increased by 3-5% year-on-year but was still lower than those in other locations. Some projects offered more than 1,000 units.

Most listed developers launched projects in Pattaya, creating a hugely competitive market that should benefit buyers. All listed developers achieved high take-up rates, especially for mid-range projects.

Local developers were still strong in the market, particularly those with a good reputation. Others looked to diversify into other sectors.

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