The number of new residential units in the first half of 2012 was similar to the total launched during the second half of last year. This was mainly because of a large number of smaller projects being introduced with a selling price of less than Bt3 million per unit, particularly within the Jomtien area.
At the end of the first half, the total supply of condominium units was about 46,350. Just 250 new units were completed and transferred, however. This was primarily because of the massive decline in condo launches in the wake of the worldwide economic crisis, when many developers decided to put their projects on hold until there was an upturn in the market.
From one extreme to the other, 5,900 units will be completed during the current second half, which represents an increase of more that 12 per cent in total supply.
From 2013 to 2015, Jomtien will continue to be the main player in the Pattaya condominium market, particularly in the middle-to-low-end sectors, with up to 14,000 units added from this year through 2015, according to developers' reports.
Mainstream buyers, both foreign and Thai, are mostly looking for an affordable holiday home, not far from the beach, with good facilities and trusted management from a recognised developer with a good track record.
The trend for condominiums with brand-name hotel management or a hotel component continues strongly in Pattaya, and there are several more due to be launched this coming high season. The addition of an international or quality domestic brand adds cachet to the development, as well as significant improvements to services and facilities for unit owners and those who choose to rent. The upshot is that capital values and strong yields are likely to increase with the addition of a hotel element.
The Thai market is particularly brand-conscious and tends to follow well-known names such as LPN, Q House, and Major Developments, and likely Sansiri and Supalai, which Colliers believes will soon enter the marketplace. Other less-known local developers have discovered the attraction of adding a brand-name hotel component to their projects, which adds prestige, desirability and in turn sales to both Thais and foreigners.
The Russian market continued its resilience during the first half of the year and it appears that it is less affected by global economic problems than other nations. European and American buyers have not shown as much demand as in previous years, but buyers from Australia were notable throughout early 2012 thanks to preferable exchange rates.
Emerging markets such as India and China have now started to put their toes in the water. Colliers believes that these countries could quite possibly become the superpowers of the future when it comes to buying property in Pattaya.
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