Market rides on strong foreign investor interest Resale prices of luxury condominium projects in Pattaya have surged by up to 100 per cent due to strong demand from foreign investors, especially from the UK and Russia, according to a research report by property firm Raimon Land yesterday.
The Raimon Land report said that demand for luxury condominium projects located close to Jomtien Beach, Wong-Amat Beach and Pattaya Bay had risen strongly while new project launches have been limited.
As a result, the resale price of luxury condominium projects in Pattaya have increased from an average of Bt74,000 per square metre in 2005 to Bt150,000 in the first two months of this year.
Investors who are interested in snapping up properties in Pattaya are mainly from Russia, the UK, Australia, Germany, and Sweden.
Half the buyers of Pattaya properties treat it as an investment, which generates returns of between 8 to 10 per cent a year, while the other half invest in them as a second home, Simon Derville, Raimon Land vice president for research and development, said.
With strong demand in the market, a number of property firms have launched new residential projects.
According to the report, 19 new luxury condominium projects, or 5,177 units, were launched last year worth nearly Bt30 billion. Some are going through the construction phase and this year about 281 units would be completed. About 1,115 units are being constructed now and will be completed next year or over the next two years.
Some 3,781 units would be built over the next two years, to add to the booming Pattaya property market. Raimon Land is a property firm, which is planning to launch a new luxury condominium project this year called “EDGE”, with an investment of Bt3.6 billion.
Raimon Land was very successful with its Northshore project in Pattaya, worth Bt1.49 billion. Its Northpoint project has recorded presales of more than 50 per cent.
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