Invest In Pattaya Blog

Lack of completed supply still provides strong yields in central Pattaya

The eastern seaboard is the second largest contributor to
Thailandûs GDP and its economic growth has boosted property
over the last two to three years, with the areaûs major city,
Pattaya, at the centre of activity. However, property demand in
the city still depends largely on a successful tourism market,
making it more susceptible than Bangkok to a slower global
economy and internal political unrest. In fact, out of Pattayaûs
top five tourism contributors, Germany and Russia were the only
countryûs that put in a positive performance, while Thailand,
China and South Korea turned in double-digit drops in arrivals.

Much like tourist arrivals, condominium launches cooled in 2009
after a record H2/08, while the take-up rate sank to 35.2%, a
low not seen in four years. With the gap between supply and
demand widening, the average unit price began slipping from its
H1/08 peak to below the THB100,000/sq.m mark in 2009.

It is fair to say we see more glossy sales brochures and
property billboards than actual cranes in Pattaya, and the lack of
finished supply continues to guarantee strong annual returns in
the range of 5-7%. Mean while, resale prices in finished
properties are escalating to be more in line with current off-plan
prices.

Condominium market recovered ?

The condominium market appears to be recovering, as all
major developers reported stronger Q1/09 presales after a
dismal Q4/08.
Developers are also enjoying lower construction and material
costs alongside a selection of reasonably priced, quality land
plots in 2009, but banks remain cautious in releasing new loans
for condominium projects.
Condominium development indicators for Q1/09 reveal:
ë Presales more than doubled those in Q4/08, signalling the
market has already bottomed out
ë Construction costs by gross floor area (GFA) have fallen
more than 10% since Q3/08
ë The construction material price index (CMPI) dropped 24%
from its July 2008 peak
ë However, the drawdown on new loans tumbled 36.5% to
THB1.8 billion from last yearûs THB2.9 billion
Stock Exchange of Thailand-listed condominium developers ›
Raimon Land, Noble Group, Preuksa, Major Development, Asian
Property, Supalai, LPN and Sansiri › reported THB8.52 billion in
condominium presales during Q1/09, a marked improvement
over Q4/08, but still 36.5% off the THB13.42 billion achieved in
Q1/08.
A drastic reduction in condominium launches is taking much of
the blame for slumping presales, and cancellations and returns
led to negative presales in Q4/08. However, most projects
launched in early 2009 are reporting good presales.

Written by Raimond Land

Airport traffic resumes gradually

Passenger traffic and aircraft movements through Suvarnabhumi Airport look set to resume a normal growth pattern over the next five months, thanks largely to the end of recession and improvements in Thailand’s political scene.

Airlines have booked 125,000 flights through the country’s main airport between the end of October and March next year – the aviation industry’s winter season – representing a year-on-year increase of 8.52%.

Passengers passing through the three-year-old airport in the period are expected to surge by 11.04% to 19.78 million, according to Airports of Thailand Plc (AoT).

The rise in domestic flights and passenger numbers is projected to significantly outpace the increase in international traffic, although domestic figures are lower than international ones.

International takeoffs and landings are forecast to rise by 3.35% to 90,000, while domestic flights look set to leap 24.56% to 35,000.

A total of 14.91 million international passengers – an increase of 6% – are expected to go through Suvarnabhumi during the winter season, while domestic passenger traffic is expected to grow by 30% to 4.86 million.

Most international passengers will be from East Asia, accounting for 53.33% of the total.

Five more carriers are starting to operate through Suvarnabhumi this winter, raising the number of airlines to 94 from 89 in the summer season.The airport bookings indicate a return to normal for air traffic, which was hit by the seizure of Bangkok’s two airports – Suvarnabhumi and Don Mueang – toward the end of 2008, as well as by political unrest, the global downturn and the H1N1 flu scare.

International travellers seem to be getting over their nightmarish memory of being stranded between Nov 25 and Dec 4 last year to come back to Thailand during the holiday season, said an industry observer.

In fact, signs of recovery in air traffic through Suvarnabhumi became clear in September with a robust 22.41% rise in passenger numbers to 3.17 million, while combined flight movements rose by 9.74% to 20,636.

September brought the second consecutive monthly recovery in flight traffic figures and volumes began recovering from the contractions of the first seven months of this year.

But the first nine months of this year saw passengers, at 29.09 million, still down 5.08% year-on-year, while aircraft movements slipped by 1.97% to 187,073.

Analysts said the speed of the global recovery and Thailand’s ability to improve its image, especially in the eyes of tourists, would determine whether traffic through Suvarnabhumi in 2009 would match 2008’s 38.6 million passengers and 245,719 flight movements.

Bangkok Post November 19th

Real Estate Investment in Pattaya, Thailand

Investing your money in real estate may seem like a bad idea today. With the current global economic crisis, investing in real estate is the last thing in people’s minds today. A lot of people would rather save money in the bank in order to have something to use on emergencies. However, if you dig a little deeper, you will find plenty of opportunities in real estate that will definitely be worth your time and money.

If you are looking for a sound real estate investment, then you should try investing in real estate in Pattaya, Thailand. Why? Well for starters, Pattaya, Thailand is a well-known tourist destination. This is where a lot of people go to in order to have a relaxing vacation.

Considered to be the jewel in the crown of Thailand, you will see that Pattaya has a lot of potential in the real estate market. With new developments booming in the area as well as a new international airport, you can safely say that Pattaya is the next boom in the real estate market.

Thais and foreigners alike are now investing in as much real estate as they can in Pattaya. They know that soon enough, this part of Thailand will develop in to one of the finest and most popular tourist destinations in the world. From condos, to apartments, to beach houses, to villas, you will find almost everything here to invest on.

You have to consider the fact that even in today’s global economic situation lots of people are still traveling to exotic vacation destinations, such as Pattaya, Thailand. It may be because that they want to escape the stress that the real world is offering today, or it may be because they simply want to relax and have fun. If you have a property here, you can be sure that it will be rented all year round. So, expect to get your return of investment in a very short time.

You also need to understand that the price of the properties in Pattaya, Thailand is not yet that high. Even with the on going developments, you can still get properties here at a very cheap price. But, with the expected boom in tourism and development in Pattaya, you can’t expect that the cheap prices will last long. This is why you may want to invest in real estate in Pattaya as soon as possible.

The sooner you invest in real estate in Pattaya, Thailand, the better the chances of getting properties at a bargain price. And, because Pattaya is expected to become very popular in the near future, you can simply sell your property here at a very high price in the future. Not only that you will get a chance of getting your investment back through rentals, but you will also make a huge profit by selling the property you own when the market value skyrockets.

There is a very large demand for property or real estate in Pattaya, Thailand. If you have the money, then don’t hesitate to invest in real estate here. Whether you are looking for apartments, condo units, lots, duplexes or houses, or new homes, you can be sure that you will be able to find it in Pattaya, Thailand.

By investing in real estate in this particular place, you can be sure that you are making the right decision. It is better than letting your money sit in the bank, and it is definitely something that you will make extra cash on especially in today’s economic situation.

Ashley Tiernan