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Few people, if any, predicted the huge economic boom in the
Pattaya area in
the past few years. Indeed, it was common to say in the late 1990s after the
Asian crash that the resort was past its sell-by date. One example was the
derelict condo building, in soi 15 just off Second Road, which has now been
developed into the popular Mercure Hotel. Another was the dilapidated
structure in North Pattaya’s soi 5 which is being turned by Raimon Land into
a choice two building development close to the beach.
From the perspective of late 2005, the evidence is all around you that
Pattaya is developing big time. Not only does it have an established tourism
industry, but people are realizing it’s cheaper to have a good time than in
Phuket for instance.
Is there no end to the building boom?
The area has the country’s major port with a massive expansion planned
for Laem Chabang and roads being constructed for easy access to the planned
Suvarnabhumi airport which should be operational by mid 2006. Pattaya and
Jomtien
themselves, with their surrounding areas, are second to none in providing
first class hotel accommodation, diverse entertainment, choice restaurants
first class golf and international schools.
Although it’ll take a while yet for Pattaya to shake off its sleazy
image, there has been wholesale bulldozing of city centre bars to make way
for a new generation of upmarket malls, boutiques and retail outlets. This
is a process is which only just beginning, to judge from what city hall
planners have to say. It’s hardly surprising then that the building frenzy
continues.
Hotels like the
Sheraton
and the Ramada always avoided Pattaya, but they are already open or in the
planning stage. The Central Group is to demolish its low-rise Wongamart
resort and replace it with a major new hotel and resort. The Sails, next to
the Ambassador Jomtien Hotel, will house a 250 room hotel and other luxury
accommodation within a 39 storey tower by Grande Asset Group. The faith of
seasoned companies in the future of the eastern seaboard seemingly is
infinite.
On the purely residential front, a series of condominiums under the View
Talay logo, pioneers in their own right, encouraged other Bangkok based
developers to return to Pattaya. They could see that a rising number of well
heeled expats, especially from Europe, and low labour and construction costs
were a winning combination. La Royale Beach, a 30 storey tower of 124 luxury
units plus 14 villas, is in the early stages of construction and reflects
the continuing popularity of Jomtien. Prices in top class projects are still
rising and 100,000 baht per square metre could become the norm in the medium
term future. Other first class developments include Nirvana Condominium,
located on Pratumnak Hill which some say is to be the “Beverley Hills” of
Pattaya, and a second tower at Ocean Marina. These and several other medium
sized condominium developments reflect the fact that customer demand had
built up and needed to be satisfied. Seasoned estate agents are still
surprised by the affluent younger buyers, aged under 50 and both Thais and
farangs, who are looking to invest and certainly don’t need a mortgage.
There’s no slackening of demand in sight. That’s not to say that every condo
development is selling well. Some of the older ones, which date from the
early 1990s or even before, are feeling their age and looking it. They
typically contain mostly smaller units of 40 or 80 sqm although some buyers
have created much larger apartments by buying three or four small ones and
knocking them through. Still, fashions change and a good buy in 1995 isn’t
necessarily top dog ten years on with so much more choice and contemporary
developments in computerised building management technology to enjoy. Also,
recent condos have many more facilities for residents and guests than their
predecessors.
On the housing front, the number of new estates in Pattaya and its
environs now exceeds a hundred and new starts are being announced on a
weekly basis. One of the best known is Siam Royal View off Sukhumvit which
will eventually offer 350 homes of different types. Housing is said to be
selling very well in the 6 – 12 million baht range, but cheap, older
properties in estates such as Jomtien Nivate and Suksabai Villa (neither of
which have organized security) are slower to sell. Properties under 3
million baht in downtown areas are hardly selling at all according to
reports. But these areas could become fashionable again in a few years as
they have the attraction of ease of access to the city centre. Today’s news,
after all, is tomorrow’s history.
All in all, Pattaya and Jomtien remain vibrant on the property front.
Although there are certainly problems – notably questions about water
supplies, traffic congestion, pollution and street crime – the future
remains bright if selling figures are anything to go by. Certainly in the
high end property market, investors and agents are having a ball. So, if you
are going to invest, choose the most expensive property you can afford.
Assuming, that is, you love it to bits!
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