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”.
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”.
Labels: condominium developments, construction expenses, resort city
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