Pattaya turning heads of condo investors

The number of units launched per year has also climbed, with 2,268 new units announced in 2007. Pattaya itself received 33% of the newly launched units, with 11% and 22% in North and Central Pattaya respectively.

The Jomtien area attracted 26% of the new launches, with 2% in Jomtien itself and 24% in Na Jomtien. Interestingly, 41% of new launches were located outside of the Pattaya and Jomtien areas, with growing interest for Si Racha and nearby Rayong.

Condominiums are popular among international investors as they are more affordable and the only type of property in Thailand that a foreigner can own 100% freehold.

Developers ride out tough 2007

Despite tough conditions in the property industry last year, most leading listed developers still reported better performances with increases in net profits.

Quality Houses Plc (QH) reported total consolidated revenue of 10.58 billion baht, down 4.3% from the previous year. Of the total, 9.057 billion baht was generated from sales of housing units, up 18.5% year-on-year, 1.118 billion from rental of office space and serviced apartments, down 14.76%, and 334.2 million baht from other sources.

North Shore has introduced to Pattaya the first schemes of shared or fractional ownership

“What we are trying to do,” says Robert who is a Nottingham lad from UK with many years experience of sales and marketing behind him in Europe and Asia, “is to introduce a breath of fresh air to the real estate scene in Thailand. A chapter member of the Real Estate Brokers Association Eastern Seaboard, he’s committed to the highest professional standards and complete customer orientation in a property world where that sadly isn’t universally true. “REBA is really a customer’s guarantee of value for money,” he emphasises.

Condo projects facing oversupply

Preuksa Real Estate director Prasert Taedullayasatit agreed with Issara, adding that this year would be a hard time for property developers of city condominiums if they did not change their concepts to meet customer demand.

"We believe the property developers that developing city condominiums by focusing on the lower to middle market may record losses rather than profits, if they do not change their condominium concept," he said.

Thailand moves to slow baht gains

The central bank imposed limits on funds entering the country to slow currency gains and protect exporters. Policy makers have gradually eased the controls, and last December lifted restrictions for real estate funds.

The Bank of Thailand sold about 1.3 trillion baht, or $39.5 billion, worth of bonds last year to financial institutions to absorb excess liquidity and curb the baht's appreciation, the deputy governor, Atchana Waiquamdee, said on Feb. 7.

Thailand further relaxed its foreign currency controls

The central bank also relaxed rules for companies and individuals buying property overseas, allowing real estate investments of up to 5 million dollars, up from 1 million dollars.

Thailand's economy has been hit by sluggish consumption and weak business confidence since the coup. The economy grew by 4.5 percent last year, among the slowest rates in Southeast Asia.

Potholes on the road to luxury Thai living

"A lot of projects never get started because of funding difficulties," said Larry Cunningham, managing director of Phuket One Real Estate. "First-time developers often just have enough money to buy the land with no construction. When they don't get sufficient sales, it never gets built. In the future, this could be quite a negative for the market."