Buyers from China, Japan boost condo demand
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DEMAND to buy homes in Chon Buri province has recovered as investors from China and Japan have returned to the markets in both the Eastern Seaboard and Pattaya, according to Quality Houses president and chief executive officer Chadchart Sittipunt.
According to a survey by Quality Houses, the supply of housing units between 2012 and 2014 was worth Bt55.19 billion, while purchase demand was Bt40.55 billion, or about 73 per cent of supply.
About 30 per cent of the buyers of homes in Chon Buri province were foreigners. Chadchart said that although demand from Russians had dropped as the ruble weakened, there were more buyers from China.
Meanwhile, the demand from Thais working in the Eastern Seaboard also expanded, so the company has launched residential projects in Chon Buri’s Muang and Sri Racha districts and in Pattaya. Up to 95 per cent of their buyers were Thais.
Half of the demand in Chon Buri province is for homes priced lower than Bt5 million.
Risinee Sarikaputra, director of research and consultancy, Knight Frank Chartered (Thailand) Co, said the condominium market in this province had grown continuously since 2007, and a total of 181 condominium projects featuring more than 63,000 units had been developed along the Pattaya coastline.
Jomtien is currently the most popular site for developers because of its relatively long beachfront. The area also enjoys close proximity to Pattaya’s city centre, making Jomtien the next priority for potential development after Pattaya, where beachfront land is becoming more limited.
Condominium developments have also taken place in the Pattaya city area, scattered around North Pattaya on the way down to South Pattaya.
The majority of condominiums in Pattaya were built by non-branded developers, representing about 79 per cent of the total. Many of the non-branded projects were by companies jointly owned by Thai and foreign entrepreneurs.
Global Top Group, Matrix Group and Riviera Pattaya Group are among the well-known developers that are owned or co-owned by foreigners.
All of the condominiums built by branded developers were high-rises except The Trust Central Pattaya by Q House.
The average annual take-up rate for condominiums in Pattaya was about 2,200 units from 2007 to 2010. The average annual take-up rate increased in the 2011-14 period to around 2,750 units, and them dropped dramatically because of a supply glut.
The average number of condominium units flowing into the market from 2011 to 2014 was about 6,300, while only 3,200 condo units a year sold in the same time period.
Prospects for the condo market in Pattaya were not good, Risinee said, because traditionally major buyers have been Russian. With the value of the rouble in decline, Russian activity in the condo market would be limited. Also, some units already purchased by Russians but not yet transferred would be returned to the market as they could no longer afford them, she said.
