Property developer Habitat Group and Thai private equity firm ECG Venture Capital are jointly investing in the development of a luxury condo project worth 3.5 billion baht in Pattaya, with the aim of tapping strong demand among foreign buyers.
Chanin Vanijwongse, chief executive of Habitat Group, said the new venture was the third project the company has invested in with ECG.
All of them were located in Pattaya as both parties saw the destination's prospects.
"In the next 4-5 years, Pattaya will undergo a drastic transformation, driven largely by government infrastructure development and private sector investments totalling over 30 billion baht," he said.
Those mega projects, owned by big property developers, will comprise two mixed-use projects -- Asset World Corp Plc's Aquatique Pattaya with an investment of more than 10 billion baht in Central Pattaya and MQDC's IconSiam Pattaya with an investment of over 10 billion baht in Na Jomtien.
Mr Chanin said the Pattaya condo market picked up post-pandemic due to strong demand among foreign buyers, particularly Russians.
The condo sales rate improved to more than 80% in 2019 with 83%, 86%, 87%, 89% and 90% during the years 2019 to 2023, respectively, from below 79%.
In the first six months, condo transfers in Chon Buri among foreigners exceeded those in Bangkok for the first time, accounting for 43.4% and 37.7% of total condo transfers nationwide, respectively, according to the Real Estate Information Center.
As property purchases for vacation homes in Pattaya were on the rise post-pandemic, the company shifted its focus from developing an investment project to a branded residential project.
Habitat on Tuesday launched Wyndham Grand Residences Wongamat Pattaya condo project with a 36-storey tower and a total of 385 units measuring 27 square metres and priced at 180,000 baht per sq m on average.
It will be located on a three-rai site in the Wong Amat area where the partners are confident of strong demand among foreign buyers, particularly Russians, and limited supply.
Mr Chanin said the project would be the company's first high-rise development, as its 10 earlier projects were either low-rise condos, each with eight storeys, or low-rise housing developments.
"We have no worries about scaling up project development to a high-rise one, which usually takes at least three years to complete, as we have ECG as a financial partner which continues co-investing with us," he said.