Pattaya Witnessing a Downturn As Supply Jumps Considerably

Pattaya is at present witnessing a downturn with a very noteworthy volume of fresh supply entering the market in 2008 and much more in the pipeline for 2009, says Robert Collins, managing director of Savills (Thailand) Limited.

The market is becoming progressively more and more classy and contemporary, says Mr Collins.

The complete volume of space at this point is expected to go beyond the level of end-user command in the resort city, given current economic conditions. Prices have also increased harshly in the last six months, to a certain extent on the back of current launches, especially Raimon Land Plc's The Lofts Southshore and the Waterfront project by the Elran Group of Israel.

This price increase comes at a time of escalating construction expenses, despite the fact that Raimon's previous project, Northpoint, got a very elevated actual sales rate toward the end of its promotion campaign.

“What we have observed at Northpoint, which was launched at a time when the market was tremendously optimistic, is that the pricing moved up at a more usual level, beginning low and finishing high,” said Mr Collins.

“You could state that the latest projects that have come online mostly ascertained their launch value at what can be believed some of the highest price points attained in the market so far.”

Showing this fast price hike is the jump at a few condominium developments from a range of 70,000 - 80,000 baht per square meter in 2007 to expectations of 100,000 to 140,000 baht these days.

At the same time as this reflects very excellent development in this period, Mr Collins senses they are very high values for the hundreds of units in these buildings, which for the majority part are not boutique developments.

“Though it's reasonable to say that the latest product coming online is obviously a development in terms of excellence and theory design over the accessible supply as a result the market is becoming more and more stylish and contemporary which will help”.

Hua Hin Persists To Make Its Mark as a Leading Resort

Hua Hin and its nearby shore destinations - from Cha-am in the north to the beaches of Pran Buri in the south - have all experienced the collision from the worldwide economic slump.

Cha-am and Hua Hin have been most preferred tourist hotspots for Thai people as the calm beaches are within a short distance from Bangkok.

Political uncertainities have also slowed the real estate sector on the western coast of the Gulf of Thailand, as has stringent enforcement of overseas ownership rules.

"It is a conventional tourist hotspot. We have a walking street, a night market, many activities and a range of food. The majority of all, both Thai and foreign tourists consider very secure when they visit as a Royal Palace is situated here," said Hua Hin deputy mayor Suvit Reanroongruang.

Because of the royal presence, Hua Hin has been the favorite vacation hotspot for Thai aristocracy and wealthy residents and also European tourists, particularly retirees.

Holiday home development beginned in the 1990s when the majority were low-rise condominiums situated close to or on the beachfront.

Because of restricted beachfront land and elevated prices, a number of low-rise condominium developments runaway south to Pran Buri Beach.

Hua Hin property development solidified past 1997 financial crisis and recommenced in 2002-03 during the country's financial recuperation.

Condominium supply in Hua Hin and the neighboring areas keep on rising from 2003 and displayed a sharp increase in 2007, as per a study by the property agency Knight Frank Thailand.

Raimon Land's Condominium Focus Thailand reported condominium launches from 2003 to the first quarter of 2008 were 21 projects with 2,514 units.

Hua Hin is a top choice for possible property investors as 27% of all projects initiated in 2007 were in resort areas, and they recorded sales of 6.3 billion baht.

It is also remarkable that at the same time as Pattaya had established more interest from housing developers recently, Hua Hin continued to be striking because of its more tranquil atmosphere, more reasonable prices and faster development conclusion schedules. This pleaded to Thai purchasers.