Overall launches of condominium units in Pattaya in the first half of 2011 exceeded the total number of units launched in 2010, according to a new report on the Pattaya City condominium market. The increase was attributed to two new projects being launched in the first quarter with more than 1,400 units each, according to the report.
There are currently a supply of approximately 45,600 units with 2,900 units scheduled for the second half of the year representing a 6 per cent of total supply. More than 4,100 units are scheduled for completion and transfer in 2012.
The two projects major projects launched in Pattaya in the first half of the year are The Grand Jomtien by AD House Ltd located on Jomtien Beach, and Condotown North Pattaya-Sukhumvit from LPN Development Plc, located over a kilometre from Wongamat Beach.
Tony Picon, Associate Director of Research at Colliers believes the entry into the Pattaya market of a large developer such as LPN could be a game-changer. “LPN has been a major player in the Bangkok condominium market for some time with its small unit sizes targeting first time buyers and now they are entering Pattaya for the first time,” he said.
“It is likely that other listed developers will follow Raimon Land, Major Development and now LPN Development who are already part of the Pattaya developer mix,” he added.
According to the Pattaya Mail, the King Power Duty Free Complex is set to open in late September and will likely attract even more tourists to the beach resort.
The Pattaya market has also seen a shift towards a hotel component in the traditional condominium market with Amari and Centara both adding residential units to their services in the city. Amari will manage the previously named The Legend on Cosy Beach by The Nova Group, while Centara will manage the Centara Avenue Residence and Suites in downtown Pattaya on behalf of the Tulip Group.
“Sales have been brisk for both projects and one key reason is the hotel aspect,” said Mark Bowling, senior sales manager for the Pattaya Office of Colliers.
Moving forward, Pratumnak is set to be the main player in the Pattaya market in the coming years due to increased demand in recent years.
Source: Property Report