PATTAYA CITY CONDOMINIUM
MARKET REPORT | H1 2013
PATTAYA CITY CONDOMINIUM MARKET REPORT | H1 2013
THAILAND
PATTAYA CITY CONDOMINIUM
MARKET REPORT
Pattaya City Condominium Market Report
EXECUTIVE SUMMARY
A similar number of newly launched units were introduced in the first half of this year, as were in
the second half of 2012.
Just 800 units were completed and transferred during H1 2013. This is higher than the total
number of units completed in 2012.
A large number of Pattaya and Bangkok-based developers continue to give a strong vote of
confidence for the Pattaya market.
The average take-up rate and average price for the first six months of 2013 are similar to the
previous year.
The new Jomtien Second Road is the most densely developed area throughout the municipality
during 2012. Jomtien, in particular, runs the risk of oversupply, and many government agencies
and property gurus are concerned about the Jomtien situation.
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PATTAYA CITY CONDOMINIUM MARKET REPORT | H1 2013
NEWLY LAUNCHED UNITS IN H1 2013
Source: Colliers International Thailand Research
Newly launched units in the first half of 2013 were similar in number
to those launched during the second half of last year. Approximately
7,400 units were launched in the first half of 2013, and most (around
52%) of the newly launched condominium units in H1 2013 were
located in the Jomtien area.
Three listed developers, Sansiri, Supalai and SC Asset Corporation,
launched their first projects in Pattaya City in the first half of 2013 and
received good feedback from buyers, especially the Thai market .
HISTORICAL SUPPLY, H1 2013
Source: Department of Land and Colliers International Thailand
At the end of H1 2013, the total supply of condominium units amounted
to approximately 47,490. During H1 2013, a rather low figure of just
800 units were completed and transferred. More than 13,000 units are
under construction and expected to be completed in the second half of
2013, the highest on record for Pattaya City.
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The labour shortage is still the major obstacle in the construction
industry, which is causing delays to complete some condominium
projects on time in Thailand, including some in Pattaya.
PATTAYA CITY CONDOMINIUM MARKET REPORT | H1 2013
SUPPLY BY ZONE, H1 2013
Source : Colliers International Thailand Research
Pattaya proved to be the most popular area for the condominium
market in the years prior to 2000; however, from 2001 onwards, the
Jomtien area has displayed continual growth due to the abundance of
remaining beachfront and secondary development sites. Pattaya, on
the contrary now faces a scarcity of development sites and those that
are available are becoming prohibitively expensive. During 2005, the
Pattaya City Administration initiated improvements to be made along
Thappraya Road and introduced a new Jomtien Second Road
extension. The road was designed to alleviate traffic congestion from
the beach road and now has many sois linking the roads together.
With the introduction of this new road, which is still an on-going
project, we have witnessed the entire area opening up and becoming
available for large-scale resort-style mass development, mostly
appealing to the lower end of the market.
The condominium supply expected to be completed between H2 2013
and 2015 in the Jomtien area is more than 15,000 units.
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PATTAYA CITY CONDOMINIUM MARKET REPORT | H1 2013
CONDOMINIUM SUPPLY BY LOCATION, H1 2013
Source: Colliers International Thailand Research
The largest condominium supply is in Jomtien, representing about
42% of the total, followed by Pattaya with approximately 30%.
area has increased to become the largest share of the Pattaya City
condominium market.
The Pattaya area was home to the majority share of the Pattaya City
condominium market from 1990 to 2000, but due to the limited plots
of land, developers are moving south. Jomtien is the new location for
property development, especially around the Jomtien Second Road,
which officially opened in 2005. Thus, the total share of the Jomtien
The pattern of overall real estate development is different for Jomtien
and Pattaya, as Pattaya contains the vast majority of both hotels and
commercial developments, which leaves very limited land supply for
large-scale condominiums.
FUTURE SUPPLY
CUMULATIVE FUTURE SUPPLY BY YEAR AND LOCATION, H1 2013
Source: Colliers International Thailand Research
Note: Based on developers estimates of completion dates.
According to claims by developers, more than 13,200 units are
scheduled to be completed and transferred during the second half of
2013. From 2013 to 2015, Jomtien will continue to be the main player
in the Pattaya condominium market, particularly in the mid-range to
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low-end sectors. Most large-scale condominium projects were
launched in Jomtien area during the past few years, some with more
than 1,000 units.
PATTAYA CITY CONDOMINIUM MARKET REPORT | H1 2013
NEWLY LAUNCHED UNITS BY LOCATION AND HALF YEAR H1 2013
Source: Colliers International Thailand Research
New launches for H1 2013 were very similar to the second half of last
year and Jomtien is still the most fashionable for condominium
developers, followed by the Pattaya area. Three new projects were
launched in Jomtien consisting of 1,000 units or more in each project
exceptions concentrating at the upper end of the market also reporting
strong sales figures. Mainstream buyers, both foreign and Thai, are
mostly looking for an affordable holiday home, not far from the beach,
with good facilities and trusted management from a recognised
developer with a good track record.
The majority of condominium projects launched in the last 12 months
have focused on mid-range to low-end buyers, though there are some
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PATTAYA CITY CONDOMINIUM MARKET REPORT | H1 2013
DEMAND
TAKE-UP RATE OF LAUNCHED PROJECTS FROM 2010 TO H1 2013
Source: Colliers International Thailand Research
The average take-up rate for Pratumnak increased by an average of
7% from the second half of 2012. Wongamat is highest in average
take-up rate, due to no new condominium projects being launched in
the area and some projects were already completed and ready to
transfer.
remaining locations, Pattaya and Jomtien, recorded a slight decrease.
Many new condominium projects were launched in Jomtien and
Pattaya in the first six months of 2013, which affected all average takeup rates in the area. In addition, some projects in those two areas have
more than 1,000 units.
The take-up rate of Pratumnak and Na Jomtien increased by an
average of approximately 7% from the second half of 2012, and the
FOREIGN OWNERSHIP/DOMESTIC DEMAND
In contrast to the last few years when foreign buyers were the
mainstay of the Pattaya and Jomtien property scene, we’re seeing a
remarkable entry into all segments of the market from Thai buyers.
For many years, the majority of the foreign-owned local development
companies struggled to sell their 51% Thai requirement. There is now
a massive shift as we witness many Thai developers coming to Pattaya,
who successfully sell well to the Thai market but do not come close to
filling their foreign ownership quota.
Many Thai developers appear to be finding international sales difficult
to attract in Pattaya, having rested on their reputation in Bangkok
without a clear perception of how Pattaya and the foreign market
works. To many foreign buyers the big name Bangkok developers are
unheard of and often their marketing isn’t even foreigner friendly. This
is changing somewhat and many of the Thai developers are realising
that to be a success in Pattaya they cannot rely solely on the local
market and are attempting to address the situation, gradually.
The Thai market is particularly brand-conscious and tends to follow
well-known names such as LPN, Q House, Major Developments and
other listed developers such as Sansiri and Supalai. Other lesser
known Pattaya based foreign developers have discovered the
attraction of adding a brand name hotel component to their project
which adds prestige, desirability, and sales to both Thais and foreigners
have been encouraging.
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The Russian market continued its resilience during the first half of the
year and it appears that they are less affected by global economic
problems than other nations. European, British and American buyers
have not shown the demand of previous years.
Emerging markets such as India and China have now started to dip
their toes into the water, with interest in the Pattaya market from these
economic powerhouses continuing to grow rapidly. We believe that
these countries could quite possibly become the superpowers of the
future when it comes to buying property in Pattaya, just as the Russian
market has increased year on year for the last decade
During the early part of the year, we witnessed a wide range of
condominiums enter the market and were astonished by the massive
success of many and the incredible take-up rates in most areas.
Certain projects have been almost sold out as soon as they were
launched, others took several months to reach 50 to 70% sold,
however, the overall results are very encouraging for the market in
general and there seems to be no stopping the immense popularity that
Pattaya holds for both investors and end users.
There are warning signs that investors should consider if entering the
market for the first time. However with the guidance of a reputable
local agent who can provide unbiased advice, there are still many
potentially sound investments to be made.
PATTAYA CITY CONDOMINIUM MARKET REPORT | H1 2013
PRICE
AVERAGE SELLING PRICE PSM BY LOCATION, H1 2013
Source: Colliers International Thailand Research
The average selling price in Wongamat remains the highest, compared
to all other locations in Pattaya City. Most condominium projects in the
area are luxury projects and are almost complete or ready to move in.
Most condominium projects in the Jomtien area are mid-range to lowend projects, targeting the budget buyers group. The average price in
Jomtien in H1 2013, increased by around 3 - 5% from the previous
year, but it is still lower than in other locations. In addition, some
projects in the Jomtien area are offering more than 1,000 units per
project.
BEACH FRONTAGE AND HEIGHT OF CONDOMINIUMS EFFECT ON PRICE H1 2013
Source: Colliers International Thailand Research
Beach frontage is the key driver in attracting higher prices for luxury
condominiums. Prices can rise by over 100% when a project is located
by the beach, especially in the Wongamat and Na Jomtien areas.
having a sea view from all units also commands a premium. However,
certain low-rise projects with an emphasis on facilities such as a large
themed lagoon swimming pool or amenities one would expect to find
in a resort will often command higher pricing.
The average selling price of a high-rise project is higher than that of a
low-rise, due to the increased construction costs, and the privilege of
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PATTAYA CITY CONDOMINIUM MARKET REPORT | H1 2013
OUTLOOK
Most listed developers have launched their condominium projects in
Pattaya City already and have created a hugely competitive market,
which should benefit buyers. All of them also achieved high take-up
rates, especially the mid-range projects. Local developers are also still
strong in the market, particularly those with a good reputation and
excellent track record; others have looked to diversify into other
sectors after discovering greater competition and narrower margins.
Many condominium projects were launched in all locations of Pattaya
City, especially in the Jomtien area. Therefore, some government
agencies and property experts were concerned about oversupply in
the condominium market, especially in the Jomtien area.
Most new condominium projects launched in 2012 and in the first half
of 2013 are mid-range to low-end, so the average selling price in all
locations still remains similar or slightly lower than in the previous
year. Many cost factors directly related to construction such as
materials and logistics fees increased, so the average price in the
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second half will probably increase by more than 5%. Land prices
across Pattaya and Jomtien are now becoming prohibitively expensive
as zoning and EIA regulations play a major part in what can actually
be built.
Some new community malls and tourist attractions were completed
and opened their doors in 2012 and in H1 2013, and have attracted
many foreign and Thai tourists. In addition, some water park projects
are under construction and expected to be completed in 2013 - 2014.
When all of the projects are completed, many Thai and foreign tourists
will be attracted and the property market in Pattaya city should grow
further in popularity.
The second half of 2013 is the high season of Pattaya, and we expect
the take-up rate to increase significantly from the first half.
PATTAYA CITY CONDOMINIUM MARKET REPORT | H1 2013
APPENDIX
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PATTAYA CITY CONDOMINIUM MARKET REPORT | H1 2013
ZONING
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PATTAYA CITY CONDOMINIUM MARKET REPORT | H1 2013
DESCRIPTION
Pattaya is a city located on the east coast of the Gulf of Thailand about
165 km southeast of Bangkok. It is within, but not under the jurisdiction
of Amphoe Bang Lamung in the province of Chonburi. The city of
Pattaya is a self-governing municipality that covers the whole tambon
of Nong Prue, Na Klua, parts of Huai Yai and Nong Pla Lai. It is located
within the heavily industrialised Eastern Seaboard zone, along with Sri
Racha, Laem Chabang and Chon Buri. It has a population of 556,916
and covers an area of 49.37 sq km.
Pattaya City occupies most of the coastline of Banglamung (one of the
11 districts that comprise Chonburi Province). It is divided into a larger
northern section that spans the areas to the east of Naklua Beach (the
northernmost beach) and Pattaya Beach (the main beach), plus the
Buddha Hill headland (immediately south of Pattaya Beach), and a
smaller southern section covering the area to the east of Jomtien
Beach, which lies directly south of Buddha Hill.
The report covers the Pattaya City area, as well as Na Jomtien, and a
distinction is made between Pattaya City and Pattaya Bay, which
constitutes part of the overall area under consideration.
Pattaya City can be divided into five zones for the purposes of this
report. Below is a summary of each zone.
Wong Amat
This is the area to the north of Pattaya Nua and is considered a more
peaceful, up-market location and a relatively new setting for
condominium development. Wong Amat Beach is considered the finest
in Pattaya and boasts several of the higher-end luxury hotels and
condominiums. Limited beachfront land should ensure that prices
increase in tandem with the popularity of this area from both Thais and
foreigners.
Pattaya
This area is considered as the city centre. The section of beach from
Central Road south to the harbour runs adjacent to the core of Pattaya’s
abundant nightlife area. Pattaya Nua and Klang are the areas favoured
by Asian visitors, especially Chinese and Koreans. A large number of
expat employees also prefer this location due to easy access of the
main highways. The area of South Pattaya is popular among Middle
Eastern, South Asian and Russian visitors. The area along Soi 15
Second Road is enjoying a resurgence in popularity among buyers.
Pratumnak
Located to the south of Pattaya and bordering Jomtien, Pratumnak is
considered a quiet residential area with a mix of luxury villas, highand low-rise condominiums. The Pratumnak area features two
beaches, Cosy Beach and Haad U Thong, which are popular with
Russian and Scandinavian visitors. Restrictions on condo development,
limited availability of land and desirability of the area should ensure
that property prices in Pratumnak will steadily rise.
Jomtien
Jomtien Beach is about 1 km south of Pratumnak Hill. The locale is
home to many high-rise condominiums, beachfront hotels, shops and
restaurants. The area at the beginning of Jomtien is considered busier,
while the area located at the end of this beach, known as Na Jomtien,
is considered to be much more peaceful and less congested.
Na Jomtien
Na Jomtien Beach is south of Jomtien and partially does not have a
beachfront road and is less developed as a result. The main road
connection is Sukhumvit Road, which is located 500 - 1,000 m from
the beach; this area extends to Ban Amphoe Beach in Sattahip District.
Note: The report covers residential areas located on or west of
Sukhumvit Road.
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PATTAYA CITY CONDOMINIUM MARKET REPORT | H1 2013
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Surachet Kongcheep
Senior Manager | Research
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