Improving transport links are said to be driving the expansion of the property and real estate sector in the Gulf of Thailand resort town of Pattaya.
According to real estate firm Plus Property, these positive factors that have triggered continual growth in demand for tourism as well as real estate.
Most recently, asking prices of condominiums in Pattaya have reached THB 180,000 per sqm at the high end, with resale prices having grown by as much as 36 percent during the past five years.
Anukul Ratpitaksanti, Managing Director for Plus Property, revealed his findings are pointing to positive growth for real estate in tourism cities, especially those located not far from Bangkok.
This, he said, was due to the state sector’s development of transportation linkages – the high-speed train linking Don Mueang, Suvarnabhumi and U-Tapao airports to the Eastern Region; the Bangkok-Hua Hin high-speed train; and the Rama III-Dao Khanong – Western Bangkok Outer Ring Expressway project.
Overall, the real estate markets in Pattaya is growing attractively, he added.
In Pattaya, there were 55,641 units of condominiums being supplied during 2017, and as much as 85 percent of these have already received response – a 5 percent increase from the same period during the previous year.
Plus said that only 8,496 units remain unsold, and these are expected to be sold off within 15 months.
The average offer price is between THB 95,000 per sqm and THB 100,000 per sqm, and this price is projected to increase every year.
Plus said that during the past five years, offer prices have grown by 28 percent. Offer prices of new projects are expected to increase up to THB 100,000 per sqm to THB 150,000 per sqm baht, while development priced in excess of THB 120,000 per in Pattaya showed demand of up to 159 percent betweem 2013-2017.
Upper-end projects with offer prices as high as THB 180,000 per sqm – exceeding the market average – have also been found.
Response toward these condos have reached 10 units per month per project during each project’s launch.
The offer price is expected to be able to continue rising, Plus reported. especially for projects in central Pattaya where land price have risen to as much as THB 400,000 per squ wah.
Plus noted that It is therefore probable that this area will experience a boom in the future.
Returns from resales has grown by between 21 percent and 36 percent over the past 5 years.
It added that the rental market continued to grow well, with condo rented out to foreigners fetching an average rent of between THB 600 TBH 700 baht per sqm per month, translating to an average rental yield of between 4 percent and 5 percent per year.
During 2017, the number of tenants grew as much as 54 percent. The most prominent factor that spurred the growth of the real estate sector in Pattaya was tourism.
Based on November 2017 data, 15 million travelers visited Chonburi over a one-year period – an increase of 8 percent from the previous year. Income from tourism grew by 17 percent to about THB 200 billion, making Pattaya a location attractive for investing in condominiums.