Pattaya inland condo demand remains strong
With limited land to build ocean-view residences, developers have moved inland and succeeded in selling 7,995 units worth over Bt10 billion in the first half of this year, according to Knight Frank Chartered (Thailand).
Risinee Sarikaputra, associate director of research and valuation, said last week that Pattaya has accumulated about 34,060 condos in 112 projects since 2007. Most condos in Pattaya do not have a sea view, representing 43 per cent or 14,733 units, while sea view and partly sea view condos represent 32 per cent and 25 per cent.
But now the firm’s research shows that the condos in highest demand in Pattaya are those with no sea view, with 7,995 units sold in the first half, representing 54 per cent. Demand for sea view condos in Pattaya was 5,110 units, or 48 per cent, while partly sea view condos were lowest in demand, with only 4,072 sold, or 47 per cent.
Non-sea view condos can be broken into three groups. There are 2,529 condos in close proximity to the beach, with demand for 584 units. This type attracts people looking for a second home or vacation home, as the pricing strategy is to offer them for half the price of projects next door that come with sea views.
City condos form the second group. They are located in convenient places in Pattaya City, targeting locals working in the city. There were 2,816 units sold out of 5,577 total units.
The last group consists of condos located off the beach but along roads that provide convenient access to many towns such as Sri Racha, Satthahip and Rayong. Thepprasit, Boonkarnjana and Chaiyapruek roads are popular because they lead to Sukhumvit Road and it is easy to avoid traffic. Some projects lie along Sukhumvit Road, or the sois in between. There were 4,595 units sold out of 6,627 units.
Smart investors pay attention to off-beach, non-sea view condos because they can be bought at a low cost and can gain more in appreciation. They are easy to rent out since most tenants |work in various industrial |estates in the area and they can avoid the traffic in Pattaya City. Facilities and amenities are also spreading out to many parts, for instance along Sukhumvit Road from South Pattaya to Na Jomtien.
Among non-sea view condo projects, those located off the beach sold for an average of Bt43,741 per square metre because the land was cheap. Those located near the beach sold for Bt48,486 per square metre. City condos were the most expensive at Bt61,630 per square metre on average.
The lowest price that an off-beach condo was sold for was Bt750,000, while near-beach, non-sea view condos started at Bt1.2 million a unit and city condos at Bt1.7 million a unit.
