The document provides a market report on condominiums in Pattaya City, Thailand for the first half of 2011. It finds that more units were launched in the first half of 2011 than in all of 2010. Around 1,000 new units entered the market. A major developer also launched its first project in Pattaya City with over 1,400 units. The second home market is being targeted, with many large-scale developments. Overall, the Pattaya growth story continues with a strong real estate market.

1. H1 2011 (Half Year) | condominium
THAIlANd
Pattaya City Condominium
market rePort
Pattaya City Condominium Market
HIgHlIgHTS
More units were launched onto the market for the first half of the year compared with
the whole of 2010.
Around 1,000 units were supplied in Pattaya for H1 2011.
mARKET INdICAToRS A large listed developer made a strong vote of confidence in Pattaya city with its first
launch in the city with a significant number of units.
H2 2010 - H1 2011
The second home market is being targeted for H1 in particular through large scale
Supply
developments.
lAuNCHES
The Pattaya growth story continues apace.
pRICES
TAKE-up
NEw lAuNCHES powER pATTAyA mARKET
NEwly lAuNCHEd IN H1 2011
Newly launched units in the first
half of 2011 were significantly
higher than the total launched in
the whole of last year. This was
due to two new projects being
launched in the first half of 2011
with more than 1,400 units per
project.
Source : Colliers international thailand research
www.colliers.co.th

2. PattaYa citY condominium rePort market | H1 2011 (HAlf YeAr)
dESCRIpTIoN
Pattaya is a city located on the east coast of the
Gulf of Thailand about 165 km southeast of
Bangkok. It is within, but not under the jurisdiction
of Amphoe Bang lamung in the province of
Chonburi. The city of Pattaya is a self-governing
municipality that covers the whole Tambon of
Nong Prue, Na Klua, parts of Huai Yai and Nong
Pla lai. It is located within the heavily industrialized
eastern Seaboard zone, along with Sri racha,
laem Chabang and Chon Buri. It has a population
of 556,916 and covers an area of 49.37 Sq km.
Pattaya city occupies most of the coastline of
Banglamung (one of the 11 districts that comprise
Chonburi Province). It is divided into a larger
northern section that spans the areas to the east
of Naklua beach (the most northern beach) and
Pattaya beach (the main beach), plus the Buddha
Hill headland (immediately south of Pattaya beach),
and a smaller southern section covering the area
to the east of Jomtien beach, which lies directly
south of Buddha Hill.
The report covers the Pattaya city area as well as Na Jomtien and a
distinction is made between Pattaya city and Pattaya bay which
constitutes part of the overall area under consideration.
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3. PattaYa citY condominium rePort market | H1 2011 (HAlf YeAr)
Supply
HISToRICAl Supply
CumulATIvE Supply IN BANgKoK
Source : Department of land and Colliers International Thailand
Note : figures now include Na Jomtien area
At the end of H1 2011, the total supply amounts to approximately 45,600 engine for demand as they do now, although many were beginning to
units. for H1 2011, more than 1,000 units were added to supply and benefit from the economic boom and consequently purchasing property.
nearly 2,900 units are scheduled to be completed in the second half of The next surge in growth was the result of the economic boom that
2011. peaked in 1997 before the fall. A more limited but sustained level of
supply came onto the market in the first few years of the new century
The foundation for the condominium market occurred in 1992 with the but picked up in the latter half of the last decade.
development of large scale condotel style properties such as Metro
Jomtien. This was the result of the Condominium Act in 1989 which
opened the door for the development of high rise residences. Initial
demand came from foreign buyers as Thais did not provide the significant
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4. PattaYa citY condominium rePort market | H1 2011 (HAlf YeAr)
Supply By zoNE
Source : Colliers international thailand research
The initial surge in supply in the city was dominated by Pattaya. However onwards, Wongamat has increased dramatically with the addition of
in 1997 a significant addition was made to Jomtien supply by the Jomtien nearly 3,000 units in the past six years and is now on a par with
Beach Condominiums (known as rimhat). The two areas continued to be Pratumnak. Na Jomtien has been the laggard, primarily due to the
the main target for developments up to the present day. Jomtien has absence of a road running along the coast and available land in more
since overtaken Pattaya due to the greater availability of land, especially accessible locations in the city.
close to the sea. The Pratumnak and Wongamat areas have developed on
a lower trajectory of growth over this period. from the year 2005
CoNdomINIum Supply By loCATIoN, H1 2011
The largest condominium supply is in the Jomtien area, representing
about 41% of the total, followed by Pattaya area, at about 31%.
Condominium projects in the Pattaya area are predominantly low rise in
nature and the average number of units per project is approximately 140,
which is similar to projects in the Wongamat and Pratumnak areas. The
figure for Jomtien area is around 360 units as most of the projects are
high rise buildings. The pattern of overall real estate development is
different for Pattaya and Jomtien. Pattaya contains the lion’s share of
both hotel and retail projects leaving limited sized land space available
for larger scale condominiums. Jomtien was largely spared this process
in the 1980’s and 90’s and as a result sizable tracts of land were and still
remain available for larger scale projects.
Source : Colliers international thailand research
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5. PattaYa citY condominium rePort market | H1 2011 (HAlf YeAr)
fuTuRE Supply
CumulATIvE fuTuRE Supply By yEAR ANd loCATIoN
Source : Colliers international thailand research
More than 2,900 units are scheduled to be completed and transferred Pratumnak is set to be the main player in the Pattaya city condominium
during the second half of 2011 which represents an increase of just over market, due to many projects being launched in the past three years.
6% in total supply and more than 4,100 units are scheduled to be This area is especially popular for the surging russian market. Also most
completed and transferred in 2012. During the years 2011 – 2013 projects are located on the hill with good views overlooking the beach.
NEwly lAuNCHEd uNITS IN H1 2011 By loCATIoN ANd HAlf yEAR
Source : Colliers international thailand research
New launches for H1 2011 were more than double from the second half Condotown North Pattaya – Sukhumvit had an official launch on 9 May
of last year. The Wongamat area contained by far the most highest 2011 in which they sold approximately 500 units or 35% from the total
followed by Jomtien area. The main reason for the number for Wongamat 1,442 units on the first day. All units in the project are one bedroom with
is due to the new project by lPN Development Plc. Jomtien’s strong one size of 22.5 sq m and a starting price of THB 699,000 per unit. In
showing is a result of the launch of a large new project by A.D. House addition to this they plan to launch a new project in the Jomtien area
Co., ltd. located on the beachfront road in October and later for another project
in Wongamat area.
lPN Development Plc. launched its first ever condominium project in
Pattaya city on Sukhumvit road in the Wongamat area. lumpini
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6. PattaYa citY condominium rePort market | H1 2011 (HAlf YeAr)
CoNdomINIum pRojECTS wITH HoTEl mANAgEmENT
The trend for residences with hotel management or a hotel component
is taking shape in Pattaya city with four projects on the market adopting
this method. The addition of such a brand adds kudos to the development
as well as significant facilities and services available to unit owners and
those who choose to rent. The upshot is that capital values are likely to
increase with the addition of a hotel element.
No. pRojECT NAmE loCATIoN
1 Movenpick White Sand Beach Pattaya na Jomtien
2 Amari residence Pattaya Pratumnak
3 Centara Avenue residence & Suites Pattaya Pattaya
4 Park Plaza Waterfront Pratumnak
Source : Colliers international thailand research
dEmANd
TAKE-up RATE of lAuNCHEd pRojECTS SINCE 2010
Source : Colliers international thailand research
The average take-up rate for the whole of Pattaya city has increased by made the average take-up rate in the area fall by more than 18%
an average of approximately 2% from the second half of 2010. The take-
up rate of three locations has increased by an average of approximately The average take up rate in Wongamat area was the highest with over
12.5% from the second half of 2010 and the other two locations, Jomtien 70% which resulted from the successful launch of the first Pattaya city
and Pattaya recorded significant decreases. project from lPN Development even though this project has a total of
more than 1,400 units.
During the first six months, three new projects were launched in the
Pattaya area with approximately 700 units and most of them were put on No new project was launched in the Na Jomtien area but the construction
the market in the last two months of first half of 2011. This had a direct progress of the current developments in this area has shown good
negative impact on average take up rates in the area. A new project was progress which has lead to greater confidence leading to improved
launched in the Jomtien area containing more than 1,500 units, which sales.
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7. PattaYa citY condominium rePort market | H1 2011 (HAlf YeAr)
foREIgN owNERSHIp / domESTIC dEmANd
In contrast to the Bangkok market, foreigners take up the lion’s share of The russian market is a particularly strong one and is further increasing.
lower end condominiums in Pattaya and Jomtien as many are retirees Many come from the eastern part of the country where countries like
with limited financial resources and foreign Bangkok residents looking Thailand are in closer proximity than the Black Sea, Greece or Turkey
for an inexpensive holiday home. This has meant that for units below 2 which are popular with Muscovites for example. Many in the east work
million Baht there is often a dual pricing structure resulting from the in the energy and mining industries and can earn a great deal of money.
49% foreigner owner limitations. In the newly emerging upmarket Due to the generally poor level of english most are attracted by the
residential markets of Wongamat and Pratumnak, local buyers are the russian language infrastructure of Pattaya city with menus, signs and
main driver and there are far fewer dual pricing policies. Often local information in the Cyrillic alphabet as well as russian speakers, both
buyers are attracted by better payment terms compared to foreign buyers native and thai to assist them.
and therefore the developers financing structure can have a significant
bearing on the local buying component.
AddITIoN of populATIoN ovER 65 IN SElECTEd CouNTRIES
Source: United Nations population Division and Colliers International Thailand research
Significant numbers of retirees will come from countries that are large standard of living in a warmer climate. The russian market, already the
markets for the Pattaya tourist industry and consequently potential strongest one in terms of foreign buyers could see further growth on
residents in the future. With lower government pension provisions back of an increase in retirees in the second half of the decade. The lure
expected in the era of the greying babyboomers, many in the west may of tropical Pattaya could be the prefect antidote to the severe russian
choose to live their remaining days in a country offering them a better winters.
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8. PattaYa citY condominium rePort market | H1 2011 (HAlf YeAr)
CHANgE IN CuRRENCy To THAI BAHT
Source: Bank of thailand and Colliers international thailand research
Pattaya as well as other resort towns in Thailand have been hampered strong commodities sector enhancing the value of the currency. This
by the strength of the Thai Baht against currencies of the vast majority goes some way to explaining why more Australians are buying resort
of foreign demand. However in the past six months currencies have property throughout Thailand, including Pattaya, as well as the prohibitive
recovered although the fraught financial situation of many governments prices of coastal real estate in Australia. The average price for an
in europe as well as the USA can add more pressure on the euro and apartment on the Gold Coast in Q2 2011 is 16.5 million baht.
dollar in the future. The Australian dollar has bucked the trend with its
HISToRICAl pERSpECTIvE
Q4 1992 1 uS$ = 25.5 THAI BAHT 1 uK pouNd = 39 THAI BAHT
It is interesting to note that the beginning of significant foreign Crisis led to a severe depreciation of many currencies in Asia and even
condominium buying which took off in 1992 was also a time of a very now in Thailand exchange rates have still not returned fully to pre-Asian
strong Thai baht against many major currencies. The Asian financial crisis levels despite the financial travails in the past few years.
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9. PattaYa citY condominium rePort market | H1 2011 (HAlf YeAr)
pRICE
AvERAgE SEllINg pRICE of ToTAl uNITS By loCATIoN, AS of H1 2011
Source: Colliers international thailand research
The average selling price in Wongamat remains the highest, although 2011 by around 0.5 – 10%. The average selling price in Jomtien showed
this dropped from the second half of 2010 by around 17%, due to the the highest increase due to A.D. House launching its new project on
average selling price of the new condominium project by lPN which has Jomtien Sai 2 road, with every unit in the project having a sea view from
been offered for approximately THB 37,000 per sq m, as the project is its elevated position with an average selling price of around THB 56,000
located on Sukhumvit road and is more than one kilometre from the per sq m.
beach. The average selling price in other locations increased from H2
BEACH fRoNTAgE ANd HEIgHT of CoNdomINIumS AffECT oN pRICE H1 2011
AvERAgE SEllINg pRICE (THB / SQ m.)
AvERAgE SEllINg pRICE
loCATIoN HIgH RISE low RISE
(THB / SQ m.) BEACHfRoNT oTHER AREA
(> 8 storey) (< 8 storey)
Wongamat 70,000 96,000 50,000 67,000 85,000
Pattaya 68,200 72,500 66,150
Pratumnak 65,000 71,500 65,000
Jomtien 55,150 122,000 48,500 66,750 43,500
na Jomtien 60,400 115,500 36,800 125,000 44,500
Source : Colliers international thailand research
Beach frontage is the key driver for luxury condominiums. Prices can the unit is especially important for buyers of a resort property. In relation
rise by over 100% when located by the beach, especially in Jomtien to Bangkok most Pattaya city developments use greater quantities of
where many projects are located some distance from the shoreline. glass in their construction in order to make the most of the
There is also a premium for high rise condominiums as the view from surroundings.
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10. PattaYa citY condominium rePort market | H1 2011 (HAlf YeAr)
foRECAST
The entrance of lPN Development in the Pattaya city market is highly
significant. While a number of listed developers have been involved in
the city, lPN is the largest company in terms of turnover and market
capitalisation to do so. What is more the company was instrumental in
the trend of bringing down average unit sizes in Bangkok, targeting a
first time buyer’s market that was beyond reach before and has since
been emulated in different forms by many other developers. In the case
of Pattaya city the market is predominantly Bangkokians looking for a
cheap second home for weekends, although demand also comes from
the local market and foreigners. Other Bangkok based developers are
likely to follow.
Many factors are falling into place that will continue to propel Pattaya
forward as an international city rather than simply a resort. Growing
demand from foreigners in vibrant visitor markets such as russia and
India - More Thais now purchasing property as a second home - The
increasing industrialization of Chonburi province and Pattaya as a
potential commercial hub - future retail and entertainment development
that will enhance the attractiveness of the city.
In previous reports Colliers International was bullish about the future
prospects of the city over the course of the next ten years. There is
nothing to alter this viewpoint and in fact events in the past six months
go some way to strengthening that positive outlook.
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11. PattaYa citY condominium rePort market | H1 2011 (HAlf YeAr)
AppENdIX
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12. PattaYa citY condominium rePort market | H1 2011 (HAlf YeAr)
zoNINg
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13. PattaYa citY condominium rePort market | H1 2011 (HAlf YeAr)
Pattaya city can be divided into four zones for the purposes of this report. Below is a summary of each zone.
1. woNg AmAT 4. jomTIEN
This is the area to the north of Pattaya Nua. It is considered a peaceful, Jomtien beach is about 1 km south of Pratumnak Hill. The locale is home
more up-market location and is a relatively new area for condominium to many high-rise condominiums, beach front hotels, shops and
development. restaurants. The area at the beginning of Jomtien is considered busy,
while the area located at the end of this beach is considered peaceful
2. pATTAyA and tranquil with less traffic passing through.
This area is considered as the city centre. The section of beach from
Central road south to the harbour runs adjacent the core of Pattaya’s 5. NA jomTIEN
abundant nightlife area. Many sections of the beach are covered by Na Jomtien beach is south of Jomtien and does not have a beachfront
rented deckchairs run by local beverage vendors during daylight hours. road and is less developed as a result .The main road connection is
Pattaya Nua and Klang are the areas favoured by Asian visitors, especially Sukhumvit road, which is located between 500–1,000 meters from the
Chinese and Korean, while the area of South Pattaya is popular among beach, this area extends to Bang Saray beach in Sattahip district.
middle eastern, South asian and russian visitors.
Note: The report covers residential areas located on or west of Sukhumvit
3. pRATumNAK road.
This area covers the main thoroughfare connecting Pattaya and Jomtien
Beach. Many upscale restaurants have recently sprung up along
Thappraya road. This area is very popular with Scandinavian and
russian visitors. Part of Pratumnak contains hills where more exclusive
style accommodation can be found.
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14. PattaYa citY condominium rePort market | H1 2011 (HAlf YeAr)
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