Pattaya Property Market Update City Expats Club - 12 Oct... · 2014. 10. 18. · Opportunity to...

Page 1www.bigmangoproperties.com

Pattaya Property

Market UpdateOctober 12, 2014

Presented to Pattaya City Expats Club

by Michael Barricelli, MD of Big Mango Properties


Political unrest continues to be a top of mind factor for many

overseas property investors

Russian Rouble (RUB) continues to tumble, Russian buyers

not as active as in previous years

Rising fears among visitors about personal safety

Concerns over visa status of “resident” foreigners, many of

whom work offshore, having some impact

What will the impact of ASEAN EC be going forward?

Road blocks from foreign governments in transferring funds

overseas (e.g. China, Russia)

Market Drivers & General Indicators


THB v. primary target group currencies


THB v. other target group currencies


Supply of condos continues to grow; + 27,800 in 2014 with

many more units coming on line through 2016

Bangkok developers continue to build in Pattaya (LPN, Q

House, Raimonland, Sansiri, TCC Capital, others coming?)

Foreigner demand for houses is up; driven by smaller unit

sizes and increasing prices for condos on the west side

Land values in all regions continue to increase rapidly

Foreigners are not the only prospects worried about political

unrest; significant increase in Thai buyers

Continued development of high-end hotels, shopping

centers and condominiums are changing buyer demographics

Factors Impacting the Pattaya Market


Historical supply of Pattaya condos

Source: Pattaya City Condominium Market Report / H2 2013 (Colliers)


Historical supply by location



Additional condos next 3 years



More “offshore” expats in the oil & gas and mining industries

are making Thailand their primary residence

Thais are coming back to Pattaya, particularly Bangkok

residents buying rental properties or purchasing a 2nd home

Expats and retirees from many English speaking countries

are all active in the market

Russians are still buying, but not in the same numbers we

have seen in the past

Interest from “new” buyers (India, China, ASEAN) has

strengthened, but not yet materialized in a big way

Japanese buyers have been testing the market in Pattaya

Who is Buying Property in Pattaya?


Houses particularly in the 3 to 5 million THB range

New developments from long standing Thai developers

New project launches from trusted foreign developers with a

positive track record

Developers launching their first projects are finding it difficult

to sell in this competitive market

Well priced second hand properties (houses and condos)

always have strong demand

Resale contracts in condo projects which are nearing

completion or just recently completed

Commercial properties, both for sale and rent

“Fire sales” always sell… but there have been very few

What’s selling in Pattaya?


Starter/entry

Budget

Moderate

High

Exclusive

Distinctly different “Markets” exist

< 50,000 THB per sq.m.

50,000 to 65,000 THB per sq.m

65,000 to 95,000 THB per sq.m

95,000 to 150,000 THB per sq.m

> 150,000 THB per sq.m

NOTE: these Indicators are for condos. House prices are generally at least 30% lower


Should I buy a condo or a house?

Condominium Benefits

Ownership in Foreign name possible

Better security

More & better amenities

Building maintenance

Stronger resale market

Many condos located at or near beach

Drawbacks

Restricted privacy

Rules & regulations (e.g. no pets)

Generally higher price than house

House Benefits

More value for the money

Privacy

Suits individual lifestyle

Expanded rental market

Opportunity to reduce tax upon resale

Drawbacks

Foreigner cannot own in their name

Owner responsible for security &

maintenance

Generally far from beach/no sea views

NOTE: houses are generally not selling well. Rental market for houses remains strong


Well priced houses are selling well

• Soi Khaotalo

• 2/3 bed room

• 150 sq.m.

• 129 t.w.

• Thai Company

• Private pool

• Corner plot

• Ask 5.5 million

• Sold 5.2 million


New projects from trusted developers

• Nova Group

• 33 story condo

• 77,000 – 104,000

THB per sq.m.

• 20th floor corner,

46.8 sqm 1 bed

• 4,131,036 THB

• Foreign name

• Start: Q1 2016

• Finish: Q1 2019


2nd hand condos in mature buildings

• Markland

• studio

• 45 sq.m.

• North view

• Thai name

• Required

renovation

• Ask 2.3 million

• Sold 2.15 M


Good demand for commercial properties

• South Pattaya

3 story shop

house

• 337 sq.m.

• 27 t.w.

• Thai Company

• Poor condition


What has been happening to pricing?


Waterfront Suites & Residences

• Tulip Group

• 50 story condo

• Bali Hai Pier

• 300 condo units

• 132,000 – 300,000

per sqm

• 86% sold, only

Thai quota remains

• Finish: Q4 2015


Atlantis Condo Resort Jomtien

• Blue Sky Group

• Jomtien 2nd Road

• 8 story condo

• 5 buildings, 1,050

condo units

• Resale only, 60 to

75,000 per sq.m.

• Ready to move in


Centara Avenue Residence & Suites Pattaya

• Tulip Group

• Pattaya 2nd Road

• 8 story condo

• 3 buildings, 380

condo units

• Approx 80% sold

• 73,500 – 85,000

THB per sq.m.

• Finish: Q3 2015


The Vision

• Matrix

• Pratumnak Hill

• 23 story condo

• 216 condo units

• Approx 80% sold

• 65,500 – 126,500

THB per sq.m.

• Structural 100%

• Finish: Q2 2015


Amazon Residence

• Matrix

• Soi Watboon

• 8 story condo

• 4 buildings, 795

condo units

• Sold out

• Resales 48,000 to

62,500 per sq.m.

• Finish: Q3 2015


Cetus Beachfront Pattaya

• Apus Development

• Jomtien Beach

• 49 story condo

• 298 condo units

• 66% complete,

structure 41st floor

• 150,000 per sq.m.

• Foreign or Thai

• Finish: Q4 2015


Wongamat Tower

• Heights Holdings

• Naklua Soi 16

• 38 story condo

• 381 condo units

• Approx 82% sold

• 77,000 – 120,000

THB per sq.m.

• Nearly finished


Domum Meridium


Understand your personal risk tolerance

Know the developer & their past projects

Copy of land title (Chanote) to verify ownership

Copy of EIA approval and building permit

What is the payment structure?

Who pays taxes? How much for sinking fund &

maintenance? Are there any additional costs?

Obtain copy of the contract & review carefully

Manage your currency riskhttp://www.bigmangoproperties.com/thailand/pattaya/new-projects

Due Diligence for “Off Plan” Purchases


Taking “advice” from a purported “expert”

Buying outside of your budget or have no budget

Over-paying and not understanding the market

Not accounting for all of the acquisition costs

If buying for investment, not developing a conservative

financial plan

Poor quality, too many repairs, structural defects

Not enough research on neighborhood

Poor due diligence, no inspection, etc.

Not using a good property agent – obtain references and

know who you are dealing with

Common Pitfalls of a Property Search


Extensive inventory of properties – not trying to sell only 1

property; good agents are “independent” from developers

Market expertise & knowledge of area and buildings

Assist in navigating legal, tax & financing questions

Negotiate better price, terms & conditions

A good agent will make sure you consider all costs

Commissions normally paid by seller (unless buyer enters

into a Buyer’s Agent Agreement)

Assistance with “after-sales” services

Why Should I Use a Property Agent?


Michael Barricelli

Michael is the owner and founder of, Big MangoProperties, which rents and sells property in Pattayaand Bangkok. We previously had two offices inPattaya (Wongamat and Jomtien), but consolidatedin our new East Pattaya location.

Prior to his arrival in Thailand Michael was CorporateController for Harvard University, one of the mosthighly regarded and well known schools in the world.Michael also served as Chief Financial Offices forBoston area hospitals and as managementconsultant for a prestigious, global consulting firm.

Contact Us

East Pattaya Office77/91 Moo 5

Boonsamphan Rd (Soi Khaonoi)

038-377-040

Michael’s Contact Info

089-685-2198

[email protected]

Property owners – we need quality

listings for sale and/or rent, especially land

and houses in East Pattaya.


Questions?

Date post:	16-Sep-2020
Category:	Documents
Upload:	others
View:	1 times
Download:	0 times

Pattaya Property Market Update City Expats Club - 12 Oct... · 2014. 10. 18. · Opportunity to...

Documents