Market

Research
pattaya C O N D O M I N I U M market

PATTAYA CONDOMINIUM MARKET OVERVIEW | 1 s t h a l f | 2 0 0 9

 c o l l i e r s i n t e r n at i o n a l | T H AILAN D

The Knowledge Report

Pattaya CON D O M I n I U M m a rk e t | 1 st h a l f | 2009

PATTAYA CONDOMINIUM MARKET

OVERVIEW
Pattaya is a city located on the east coast of the Gulf of Thailand about 165 km southeast of Bangkok.
Market Indicators 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 industrialized Eastern
1h 2009 2h 2009F Seaboard zone, along with Sri Racha, Laem Chabang and Chon Buri. Pattaya is also the centre of
the Pattaya-Chonburi Metropolitan Area, the conurbation in Chonburi Province.

SUPPLY The real estate market is big business in Pattaya, especially property development. Many new
buildings have gone up in recent years and some people think the market might be oversupplied.
DEMAND Some buildings are put up. There is also a market for villas, but its growth is limited.

“Greater Pattaya” occupies most of the coastline of Banglamung (one of the 11 districts that comprise
take up rate
Chonburi Province). It is divided into a larger northern section that spans the areas to the east of
Naklua Beach (the most northern beach) and Pattaya Beach (the main beach), plus the Buddha
average selling Hill headland (immediately south of Pattaya Beach), and a smaller southern section covering the
price area to the east of Jomtien Beach (which lies directly south of Buddha Hill), including Dongtan
Beach. Jomtien’s beaches are much broader and generally in better shape, and the atmosphere
locally is more sedate and family-oriented than at Pattaya Beach.

The real estate market is big

business in Pattaya, especially
property development. The key
factor of success in developing
a condominium in Pattaya is the
developers. Larger developers can
raise confidence among buyers
thanks to their reputation and/or
consutrction track record. Based
on our experience, unsuccessful
condominium projects are not
developed professionally and we
believe that there is an opportunity
for strong new players to start
developing true five-star residential
projects in Pattaya.

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The Knowledge Report | 1st Half | 2009 | Pattaya Condominium Market

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Supply Trends

Condominium Locations

Our study is focused on the major areas of condominium

accommodation in Pattaya, which can be subdivided into four
main areas:

1. Wongamat: This is the area to the north of Pattaya Nua.
It is considered a peaceful, more up-market location and is a
relatively new area for condominium development. The current
developments under construction in this area are Northpoint,
The Cove, Ocean’s Edge and many more. The condominium
units in this precinct offer a total supply of 3,434 units. During
the first half of 2009, there were four condominium project was
added to the supply in the area.

Table 1 : Supply Added in Wongamat Area, 1H 2009

No. Project Name Developer no. of Units

1 Near Beach Residence T K R Engineering and Supply Company Limited 59

2 Wongamat Privacy Condominium D Royal and Spa Condotel Company Limited 78
3 Wongamat Privacy Condominium C Royal and Spa Condotel Company Limited 76
4 View Talay Residence Condominium VI Siam Best Enterprise Company Limited 79
Source : Department of Land, Pattaya & Colliers International Thailand Research

2. Pattaya: This area is situated alongside the city centre. The
section of beach from Central Road (Pattaya Klang) south
to the harbour is adjacent to the core of Pattaya’s abundant
nightlife area. Many sections of the beach are covered by rented
deckchairs run by local beverage vendors during daylight hours.
Pattaya Nua and Klang are the areas favoured by Asian visitors,
especially Chinese and Korean, while the area of South Pattaya is
popular among Middle Eastern, South Asian and Russian visitors.
Condominium projects in the vicinity include Northshore,
Saratta and Nova Atrium to name just a few. The condominium
units in this vicinity total 6,021 units. Three condominium
projects were added to the supply in this area in 1H2009.

Table 2 : Supply Added in Pattaya Area, 1H 2009

No. Project Name Developer no. of Units

1 The Paradise Residence Condominium Thanabutchai Realty Company Limited 78

2 Pattaya Klang Centre Point Condominium Central Pattaya Centre Point Company Limited 230
3 The Pride – Tower B Prinsiri Public Company Limited 79
Source : Department of Land, Pattaya & Colliers International Thailand Research

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3. Pratumnak: This area covers the main thoroughfare units nearby; among them Royal Cliff Garden and Royal
connecting Pattaya and Jomtien Beach. The recent trend Beach Condotel have excellent reputations. This area is
in the area is the opening of many upscale restaurants along also very popular with Scandinavian and Russian visitors.
Thappraya Road. Despite this, there are many condominium

Table 3 : Supply Added in Pratumnak Area, 1H 2009

No. Project Name Developer no. of Units

1 The Bay View II Condominium Haven Sky Holding Company Limited 37

2 Villa Norway Residence I Siam Ruby House Company Limited 21
Source : Department of Land, Pattaya & Colliers International Thailand Research

4. Jomtien: Jomtien beach is about 1 km south of Pratumnak area located at the end of this beach, called “Na Jomtien”, is
Hill. The locale is home to many high-rise condominiums, considered peaceful and tranquil. There are many plots of
beach front hotels, beaches, shops and restaurants. The area vacant land available at Na Jomtien for future development.
at the beginning of Jomtien is considered busy, while the

Table 4 : Supply Added in Jomtien Area, 1H 2009

No. Project Name Developer no. of Units

1 Avatara Condominium The Grand Iyara Company Limited 31

2 View Talay Residence Condominium IV Siam Best Enterprise Company Limited 79
Source : Department of Land, Pattaya & Colliers International Thailand Research

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Total Current Supply

At the end of 2008, the supply of condominium units was
approximately 39,555 units. From Jan-Jun 2009, approximately
847 units were added to the supply, bringing the current total
supply of condominiums to approximately 40,402 units in Pattaya’s
condominium market. The sharp increase in condominiums in
Pattaya was found in 2006, up 18.06% over 2005. The growth
rate of new supply is projected to average 9.96% per year from
2003 to 1H 2009.

Figure 1 : Supply of Pattaya Condominium Units, 2003 - 1H 2009

Source : Department of Land, Pattaya & Colliers International Thailand Research

The majority of condominium supply is in the Jomtien area, and the Pratumnak areas, representing about 15% and 11%,
representing about 65% of the total, followed by the Pattaya respectively.

Figure 2 : Supply of Pattaya Condominium Units by Location, 1H 2009

Source : Department of Land, Pattaya & Colliers International Thailand Research

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Future Supply

Approximately 75 condominium projects with over 15,288 units favourable location close to the beach, as well as the high density
will be launched in 2H2009 and beyond, with the majority in the in Pattaya. Future developments will shift to the Baan Amphoe
Jomtien Beach area due to the availability of land and the and Bang Saray areas.

Table 5 : Future Supply of Pattaya Condominium Projects, 2H2009-2013f

No. Project Name Location No. of Units Est. Completion

1 High Point Wongamat 49 2009
2 Avenue Residence Pattaya 228 2009
3 Maxx Central Pattaya 48 2009
4 Pattaya Beach Resort Pattaya 146 2009
5 TW Pattaya Klang Pattaya 178 2009
6 Vogue Pattaya 50 2009
7 Emerald Palace Pratumnak 43 2009
8 Nova Oceanview Pratumnak 78 2009
9 Phuview Talay Pratumnak 79 2009
10 Siam Oriental Twins Pratumnak 69 2009
11 View Talay Residence 5 Pratumnak 76 2009
12 Boulevard de Jomtien Jomtien 10 2009
13 Jens Apartment Jomtien 24 2009
14 Regatta Jomtien 66 2009
15 Thaiswai Residence Jomtien 70 2009
16 Sunrise Beach Villa Jomtien 27 2009
17 Park Royal Pratumnak 39 2009
18 The Urban Pattaya Pattaya 168 2009
19 Katilina Residence II Pratumnak 38 2009
20 North Point Wongamat 377 2009
21 Poom Patta Pattaya 158 2009
22 Laguna Heights Wongamat 80 2009
23 One Pattaya Height Pratumnak 47 2009
24 Suan Sawan Pattaya 272 2009
25 Jomtien Beach Mountain Jomtien 77 2009
26 Pattaya City Resort Pattaya 192 2009
27 The Sanctury Wongamat Wongamat 199 2009
28 TW Wongamat Beach Wongamat 412 2009
29 Royal Beach View Pratumnak 36 2009
30 La Royale Beach Jomtien 165 2009
31 The Montrari Jomtien 18 2009
32 Siam Ocean View Pratumnak 43 2009
33 Pattaya Heights Pratumnak 94 2009
34 Life Vela Casa Wongamat 355 Aug. 2009
35 The Amber Royal Hill Condo Pratumnak 56 Dec. 2009
36 LK Legend Pattaya 279 2010
37 Elegance Pratumnak 79 2010

Remark : The planned projects are based on reports from developers and may be subjected to delay.
Source : Developers announcements and Colliers International Thailand Research

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Table 5 : Future Supply of Pattaya Condominium Projects, 2H2009-2013f

No. Project Name Location No. of Units Est. Completion Year

38 On the hill Pratumnak 31 2010
39 TW Jomtien Beach Jomtien 216 2010
40 View Talay 7 Jomtien 2,400 2010
41 Royal Residence 2 Jomtien 36 2010
42 Sunrise Royal Scandinavian Jomtien 125 2010
43 The Urban Suite Pattaya 79 2010
44 Sunset Boulevard Residence Pratumnak 126 2010
45 The Ocean Pearl (Phase 1) Pratumnak 67 2010
46 Tropical Dream Pratumnak 70 2010
47 The Cove Wongamat 103 2010
48 Tudor Court Pratumnak 136 2010
49 Diamand Suite Pattaya 282 2010
50 Ocean’s Edge Wongamat 32 2010
51 The Park Jomtien Jomtien 160 2010
52 APUS Pattaya 158 2010
53 Tropicana Condotel Pratumnak 70 2010
54 City Garden Pattaya Pattaya 366 2010
55 City Condo @ South Pattaya Pattaya 360 2010
56 Executive Residence 5 Pratumnak 60 2010
57 Jomtien Plaza Condominium Jomtien 140 2010
58 Jomtien Beach Penthouses Jomtien 78 Oct. 2010
59 Waterfront Pratumnak 325 2011
60 Viewtalay Marina Beach Condominum Jomtien 1,208 2011
61 Wongamat Wongamat 79 2011
62 Park Lane Jomtien 608 2011
63 The Pride 2 Pattaya 79 2011
64 Hyde Park Residence Pratumnak 79 2011
65 Saratta Residence Pattaya 12 2011
66 Eastpoint Condominium Pattaya 156 2011
67 The Ocean Pearl (Phase 2) Pratumnak 67 2011
68 AD Hyatt Wongamat 512 2012
69 The Loft Southshore Pratumnak 726 2012
70 W Tower Wongamat 355 2012
71 Reflection Jomtien 332 2012
72 Ananya Beachfront Condominium Wongamat 50 2012
73 Life Star City Tower Pattaya 116 2012
74 Ocean 1 Tower Jomtien 611 2012
75 The Chateau Pratumnak 453 2012
Remark : The planned projects are based on reports from developers and may be subjected to delay.
Source : Developers announcements and Colliers International Thailand Research

A total of 4,146 condominium units will be added to the supply in Pattaya, increasing the total by the end of 2009 to 43,701 units.

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Figure 3 : Future Supply of Pattaya Condominium Units, 2H2009-2012f

Source: Colliers International Thailand Research

Demand Trends

International buyers are mostly tourists who visit Pattaya regularly, in these projects. The following are the target tourists interested
with most of them looking for a good return on their investment in buying Pattaya condominium units.

Figure 4 : international tourists visiting pattaya, 2007 & 2008

Source : THA,TAT & Colliers International Thailand Research

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1. Russians: Marketing agents and developers identify the main
buyers as visitors from Russia. In 2007, 889,656 Russians visited
Pattaya, up 84% over 2006, making them the leading market for
the resort after only Thais, 1.51 million of whom checked into
Pattaya hotels in 2008. However, the number of Russians visited
Pattaya has declined in 2008 to 564,483 persons. Although
Russians have been visiting Pattaya for more than a decade, only
in the past two years have they started to buy up property in
Pattaya and the trend is catching on.
2. Expat Market: Located in such centres as Hong Kong,
Singapore, Tokyo, Bangkok, Phuket and Chiang Mai, the expat
market is attracted by Pattaya’s comparatively low land prices
and cost of living. Knowing Asian markets well, they are
particularly attracted by a potential yield of circa 9-11% on prime
developments and spectacular rates of capital growth, which can
be as high as 50%.
3. British: Before the Russians rushed into Pattaya’s property
picture, the main buyers were British visitors, many of them
looking for a second home aboard and a retirement spot.
4. Scandinavians: Like the Russians, this group has proved a
large and growing market for properties in Pattaya and the
surrounding areas over the past two years. Another similarity is
that sales to both Russian and Scandinavian buyers tend to be
handled through their own national networks.
travelling to the area, up 32% over 2002. The important factor
behind Korean’s love of Pattaya and as property buyers is their
love of golf, as Pattaya has many golf courses in the surrounding
area.
6. Middle East: The Middle East has potential in terms of
property purchases in Pattaya, with visitors from the region up
25.08% over 2002.
7. India: The number of Indian tourists visiting Pattaya is up
42% since 2002.
8. Thailand: The attitude of Thais towards the resort is as
a residential area and they take the following issues into
consideration:
- Location: A short distance from Bangkok, with a
driving time of approximately one and a half.
- Geographic area: They prefer to buy a resort property
in a beach rather than a mountain area since the beach
offers many sporting activities for the whole family.
- Completed facilities: These should have restaurants,
entertainment and shopping options.

5. Korean: Korean visitors tend to be interested in buying

property in Pattaya due to the increasing number of tourists

From 1-15 June 2009 the Land Department in Pattaya shows that the majority of condominium buyers are foreigners, representing
82% of the total, while just 18% of buyers are Thais.

Figure 5 : Proportion of Thais and Foreign Buyers of Condominium Units

in Pattaya, Jun 1-15, 2009

Source : Department of Land, Pattaya & Colliers International Thailand Research

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Approximately 319 second-hand condominium units were sold were newly completed.
in the first half of June 2009, while 73 of the total 392 units sold

Figure 6 : Demand for NEWLY Condominium PROJECTs and Second-Hand

comdominium Projects among Thais and Foreigners, Jun 1-15, 2009

Source : Department of Land, Pattaya & Colliers International Thailand Research

Condominium units in highest demand are those measuring less those between 50 sq m and 99 sq m, representing 14%. Demand
than 50 sq m, representing about 83% of the total, followed by for units bigger than 100 sq m represents just 3% of the total.

Figure 7 : Demand for Condominium in Pattaya by unit Size

Source : Department of Land, Pattaya & Colliers International Thailand Research

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We have measured the absorption of units in projects that were the end of 1Q2009. Thus, there were approximately 5,701
marketed during 2008 and applied this as a proxy for demand units available for sale, making the cumulative selling rate of
during the year. condominium units up until 1Q2009 54.32%.

A total of 12,479 condominium units in Pattaya were marketed

in 2008, with the cumulative number of units sold 6,778 at

Figure 8 : Demand for Condominium Units in Pattaya

Source : Colliers International Thailand Research

Demand by Unit Type

The most popular type of condominium unit in Pattaya is remaining due to the global recession, which slowed down the
studio and 1-bedroom types, while the least favourite type is the sales rate in the first half of 2009.
bigger unit with three bedrooms. However, many units are still

Figure 9 : Demand for Pattaya Condominium by unit Size

Source : Colliers International Thailand Research

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Demand by Location

We have measured the absorption of units by location in newly
launched projects during the year and applied this as a proxy for
demand by location.
In 2008, the Wongamat area showed the highest absorption rate,
with the percentage sold at 59.96%. This area was followed by
the Pratumnak and Pattaya areas, with 42.88% and 30.29%,
respectively. The percentage sold in the Jomtien area was the
lowest, at only 13.98% of the total number of units launched
in 2008. Demand for condominium units in the Jomtien area
showed to be the worst performance due to the high number
of units currently available and over supply in the area. In an
economic downturn, all consumers, except those in the live-
for-today segment, typically re-evaluate their consumption
priorities.

Figure 10 : sales proportion of Newly Launched Units in 2008 by Location

Source : Colliers International Thailand Research

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Price

The sales price on all projects varies considerably, depending on
the launch time, the project/unit design, level of interior finish,
facilities, location and quality of the product.
The condominium market in Pattaya is attractive to both Thais
and foreigners, due to its proximity to Bangkok and the number of
completed facilities in the area. The key factor when purchasing
property is location. It is significant to consider the property’s
surroundings, access and convenience of infrastructure. Pricing
alone is not the top priority. Another critical element is timing
and identifying the right property.
The average sales price will vary according to location, building
specifications and decoration. In order to clarify the price, we
will focus on the following locations since condominium prices
are a function of land prices, which depend on location.

Table 6 : Average Selling Price of Condominium Units in Pattaya, 1H 2009

Area Average selling price

Wongamat THB90,000–135,000
Pattaya THB85,000–120,000
Pratumnak THB70,000–110,000
Jomtien THB95,000–130,000
Source : Colliers International Thailand Research

During the global recession, there has been some demand for
Pattaya condominiums, although the majority of this demand
is for self-use, rather than as an investment. From the data of
the Department of Land, Pattaya, from Jun 1-15, 2009, it can
be seen that the highest number of condominium units sold
in Pattaya were those units with prices below THB 1 million,
while the lowest numbers sold were those in the price range of
above THB10 million. High-end properties, not only in Pattaya
but in all areas, are seeing some of the largest declines. This is
not surprising since the buyers in this sector of the market are
typically cash rich, astute business people who know that they
have a good chance of securing a better deal by holding off. In
the low end of the market, mortgages can be harder to secure
and, with this sector poised to become more crowded as prices
decline, some time will likely need to pass before demand starts
to pick up.

Figure 11 : Demand for Pattaya Condominium by Price Range, Jun 1-15, 2009

Source : Department of Land, Pattaya & Colliers International Thailand Research

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Outlook: 294 offices in 61 countries

on 6 continents
Facilities, activities and infrastructure in Pattaya has been developed continually,
USA 94
with many new developments to serve the residents. The retail market is complete Canada 22
as Avenue Pattaya and the Central Festival Pattaya Beach. Shopping centres make Latin America 17
it convenient for the residents in terms of offering daily products and services. Asia Pacific 64
In addition, premium or luxurious products and services can be found in Pattaya, EMEA 97
including international medical centres and schools. US$ 1.6 billion in annual revenue
1.1 Billion square feet under
The key factor of success in developing a condominium in Pattaya is the developer, management
who should have proper funding and strong experience in condominium, residential 12,700 Professionals
or hotel developments. Larger developers can raise confidence among buyers thanks
to their reputation and/or construction track record. A prime condominium site
should be on the beachfront or a hillside site that offers sea views and beach
access, also providing buyers with a level of privacy. The right products also need
to be provided to meet the current trends in demand. Based on our experience,
unsuccessful condominium projects are not developed professionally and we believe
that there is an opportunity for strong new players to start developing true five-star
residential projects in Pattaya. Contact information

Notes
THAILAND:
Patima Jeerapaet Risinee Sarikaputra
The condominium rating used in our research is based solely on property ratings Managing Director Director | Research
and the rates achieved obtained from market research. The rating system used in
our report is not that of Colliers International. Colliers International
Bangkok Office:
17/F Ploenchit Center
Klongtoey
Bangkok 10110
Tel: 662 656 7000
Fax: 662 656 7111

Pattaya Office:
492/2 Thappraya Road
Nongprue
Banglamung
Chonburi 20150
Tel: 6638 364 411
Fax: 6638 364 414

This report and the figures shown herein has been prepared
by Colliers International as a guide only. Any interested party
seeking to rely on the contents should undertake its own
enquiries as to the accuracy of the information. Colliers
International does not guarantee, warrant the accuracy
or represent the information contained in this document,
and excludes unequivocally all inferred and implied terms,
conditions and warranties arising out of this document, as
well as all liability for loss and/or damage arising therefrom,
including any loss of profits, business or anticipated savings.

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