Robust Growth Of 21% For Pattaya Condominium Prices

September 17, 2013

According to research it has been found that there is fierce competition for condominium projects near the BTS area in Bangkok. This has resulted in an increase in price to 70,000 square meters which is a 21% growth.

Mr. Simon Derville, Deputy Vice President, Business Development for Raimon Land PCL (Thailand) reveals the latest report findings from ‘condominium focus’ since the second half of 2012 until the first half of 2013, the report shows that the BTS area in Bangkok is a major attraction for condominiums. New projects have been launched near the BTS area with a starting price of 100,000 baht per square meter, a total of 32 new projects altogether 12,898 units have newly emerged. 70% of occupancies are from the one-bedroom units. Rama 9, Ratchadapisek, Ladprao, Phaholyothin are areas that has attracted most condominium projects and have resulted in an average sales of 74%.

“The demand for buying condominiums will still exist if the interest rates are favorable. The construction and land prices which has increased has affected new projects by launching their projects as a luxury condo or has shifted to construct condominium on the outskirts of the city” states Mr.Derville.

Mr. Derville reports that the Pattaya condominium market has launched 30 new projects, 13,152 units and an average sales of 48%. Project developers are starting to expand the project however they are still targeting areas overlooking the sea. An increase in land price has resulted to an overall increase in condo room prices which have increased by 21%, on average 71,357 baht per square meter. The main buyers are still Thais who are looking for a second home as well as foreigners from Russia, Japan, China, India, etc.

Pattaya has many main real estate developers, whose brand are known and therefore has resulted in slow selling rates for other condominiums that are fairly new to the market. This might be a risk and challenge to new developers because the customers might not trust or have confidence in their project as compared to developers that are already well-known.