These factors include improving ground transportation connectivity via a second road that runs parallel to Jomtien Beach Road for about 400 metres, and many new attractions such as the Jomtien market; two water parks — Ramayana, the biggest water park in Southeast Asia and Cartoon Network Amazone, which are both due to open later this year; and the Grand Kingdom shopping mall, drawing families with young children and shoppers to the area.
Jomtien is about one kilometre south of Pratumnak Hill. The area at the beginning of Jomtien is considerable busy, whilst the area located at the end of this beach called Na Jomtien is peaceful and tranquil, with less traffic passing through.
Statistics from Knight Frank Thailand show that the cumulative condominium supply of Pattaya, Jomtien and Bang Saray as of the first half of 2013 was recorded at 40,939 units, increasing by 32.9% over the end of the second half of 2012. The new condominium supply has increased healthily in the first half of 2013, with approximately 10,153 units of 20 condominium projects entering the market. This year, there are many listed developers entering and developing condominium projects in the Pattaya market, such as SC Asset PLC., Sansiri PLC., and Supalai PLC.
The Jomtien market has shown continuous growth from the previous year, due largely to the abundance of remaining land plots, with approximately 4,247 units launched during the first half of 2013, or around 42% of total new launches. Since the new Jomtien Second Road extension has connected to the major road in Pattaya, we have seen the Jomtien area becoming available for large-scale condominium resort developments.
The North Pattaya/Wongamart area achieved the second-most popular slot, with a total number of new launches at around 3,114 units, or about 30% of the total new launches. North Pattaya/Wongamart area is considered a peaceful area favoured by Thai condominium buyers. It is also quite a new area for condominium development for both local and Bangkok-based condominium developers.
The total number of new launches in South Pattaya was 1,800 units, or 18% of the total new launches. The South Pattaya area is considered to be a busy locale due to its many shopping malls, restaurants, and entertainment spots. It is thus more crowded and not as attractive for residential development as other areas; the total number of new launches in Pratumnak accounted for only 992 units, or 10% of the total new launches.
Knight Frank Thailand research has indicated that the demand of Pattaya condominium units as of the end of the first half of 2013 totalled 21,614 units, representing a take-up rate of 51.7%. During this period, the take-up rate increased from just 50.3% by the end of 2012 to 51.7% during mid-2013. There were approximately 5,682 units sold during the first half of 2013. The demand was high in the budget condominium segment, where the selling price was in the range of THB 1 million to THB 2 million per unit for compact units of around 25 to 30 square metres in size. The buyers are Thais working in the Eastern Seaboard, Bangkokians who desire a second seaside home, and Russians who want an escape from the winter in their home country.
The selling prices of condominiums in Pattaya vary according to location and views. There are some high-rise projects located further from the beach that still boast sea views. The highest selling price was in North Pattaya, an area favoured by Thais who reside principally in Bangkok. Most of the condominium projects in this area located near the beach, providing sea views, sold for over THB 130,000 per square metre. Other projects in North Pattaya, with no sea views, sold in the range of THB 55,108 to THB 71,250 per square metre.
Most sea view projects being launched during the first half of 2013 were located in the Jomtien and Pratumnak areas. The selling price of new launched sea view condominiums in Jomtien was in the range of THB 91,372 to THB 140,000 per square metre. The average selling price in Pratumnak increased from THB 77,610 per square metre in 2012 to THB 89,010 per square metre in the first half of 2013.
Pattaya has become one of the most desirable seaside locations. It is easily accessible to major destinations in Asia, supported by the government’s infrastructure investments, including the upgrade of U-Tapao Airport’s capacity to five million passengers per annum, as well as the planned high-speed rail link connecting Bangkok to Pattaya, which will help drive traffic to the resort city. In addition, Pattaya has also become an international business hub for the impending ASEAN community, attracting investors from overseas. Also, the number of international and local tourists has been increasing steadily.
Miss Risinee Sarikaputra, Director, Research & Consultancy, Knight Frank Chartered (Thailand) Co., Ltd., expected to see new demand for Pattaya condominiums from local Thai buyers, particularly for projects located in North Pattaya/Wongamart, due largely to the many restaurants, retail outlets, and shopping malls that are already in place. The more tranquil condominium projects situated in Jomtien are very popular for visitors from Russia and Scandinavia who are looking for affordable condominium units in this peaceful holiday destination as a second or vacation home.