Pattaya City Condominium Market Report | H2 2012 H2 2012 | Condominium
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PATTAYA CITY CONDOMINIUM MARKET REPORT | H2 2012 H2 2012 | CONDOMINIUM THAILAND PATTAYA CITY CONDOMINIUM MARKET REPORT Pattaya City Condominium Market HIGHLIGhts Just 590 units were completed and transferred in 2012. The total of completed condominium units registered at the Department of Land at the end of 2012 is nearly 46,700 units. The relatively small amount of units completed and transferred is primarily due to the low number of project launches in the wake of the worst of the economic crisis when developers held back on the number of launches, which has since risen exponentially Market INDicatOrs between 2011 & 2012. 2011 / 2012 Approximately 7,250 newly-launched units were introduced in the second half of 2012. The average take-up rate in all locations of the Pattaya city market increased by around 7% SUPPLY from the first six months. LAUNCHES The average price of all projects in all locations in 2012 is around 13% lower than the price PRICES in 2011, this is because of the many mid-ranges to low-end condo projects launched in 2012. TAKE-UP The new Jomtien Second Road will remain the most densely developed area throughout the municipality during 2012, with many more projects scheduled for the second half. NEW LAUNCHED CONDOMINIUM UNIT IN PattaYA CITY NEWLY LAUNCHED IN H2 2012 The number of newly-launched units in the second half of 2012 decreased from the total launched during the first half of 2012. This was due to the huge volume of condominium units being launched during the past year and the first half of 2012 which are still available on the market, causing many developers to hold back on their launches of new projects. In addition, most new condominium projects launched in the second half are smaller developments of approximately 250 units. Source : Colliers International Thailand Research www.colliers.co.th PATTAYA CITY CONDOMINIUM REPORT MARKET | H2 2012 SUPPLY HistORICAL SUPPLY CUMULatiVE SUPPLY IN BANGKOK Source : Department of Land and Colliers International Thailand At the end of 2012, the total supply of condominium units amounted to units in 2012 were the lowest in the past few years. With the ASEAN approximately 46,700. During the year 2012 a rather low figure of just region opening up in 2015 it’s expected that many migrant workers from 590 units were completed and transferred, primarily due to the low neighbouring countries will step in and fill the existing labour shortages number of launches after the economic crisis. within the construction industry. A lot of condominium projects postponed their completion dates to 2013, due to the construction worker shortage. Completions of condominium COLLIERS INTERNATIONAL | P. 2 PATTAYA CITY CONDOMINIUM REPORT MARKET | H2 2012 SUPPLY BY ZONE, H2 2012 CUMULatiVE SUPPLY IN BANGKOK Source : Colliers International Thailand Research Pattaya proved to be the most popular area for the condominium market designed to alleviate traffic congestion from the beach road and now has in the years prior to 2000; however from 2001 onwards the Jomtien many sois linking both roads together. area has displayed continual growth due to the abundance of remaining beachfront and secondary development sites. Pattaya, to the contrary, Many condominium projects were launched along Jomtien Second Road now faces a scarcity of development sites and those that are available in the Jomtien area and most of them are large-scale projects, so are becoming prohibitively expensive. During 2005, the Pattaya City approximately 15,400 units were scheduled to be completed during 2013 Administration initiated improvements to be made along Thappraya Road - 2015. and introduced a new Jomtien Second Road extension. The road was CONDOMINIUM SUPPLY BY LOcatiON, H2 2012 The largest condominium supply is in Jomtien, representing about 41% of the total, followed by Pattaya with approximately 31%. Many large-scale condominium projects were launched in the Jomtien area, so approximately 15,400 units are scheduled to be completed in 2015 in the Jomtien area. Around 10,100 condominium units were expected to be added to the market during 2013 - 2015 in the Pratumnak area. The pattern of overall real estate development is different for Jomtien and Pattaya, as Pattaya contains the vast majority of both hotels and commercial developments, which leaves very limited land supply for large-scale condominiums. Source : Colliers International Thailand Research COLLIERS INTERNATIONAL | P. 3 PATTAYA CITY CONDOMINIUM REPORT MARKET | H2 2012 FUTURE SUPPLY CUMULatiVE FUTURE SUPPLY BY YEAR AND LOcatiON Source: Colliers International Thailand Research Note: Developers’ expected completion dates According to developers almost 14,000 units are scheduled to be Jomtien still holds the largest share of the condominium market going completed in 2013; more than 3,900 units in Jomtien was the highest into the future with nearly 15,400 units expected to be completed during number of all locations, followed by Pratumnak with around 3,400 units. 2013 - 2015. NEWLY-LAUNCHED Units BY LOcatiON AND HALF YEAR Source : Colliers International Thailand Research New launches for H2 2012 decreased from the first half by around 30% exceptions concentrated in the upper end of the market, also reporting and no new projects were launched in the Na Jomtien area. Jomtien is strong sales figures. Mainstream buyers, both foreign and Thai, are still most fashionable for developers, due to nearly 3,000 units being mostly looking for an affordable holiday home, not far from the beach, launched in the second half of 2012, the highest of all locations. with good facilities and trusted management from a recognised developer with a good track record. The majority of condominium projects launched in the past two years have focused on mid-price to low-end buyers, though there are some COLLIERS INTERNATIONAL | P. 4 PATTAYA CITY CONDOMINIUM REPORT MARKET | H2 2012 ListeD COMPanies IN THE PattaYA Market Many listed companies were focusing more on the areas outside Bangkok, Road which was sold out in few months. Their second project in the Pattaya, Chiang Mai, Khon Kaen, Khao Yai, Cha Am, Hua Hin and Udon Jomtien area also had a high take-up rate, so they launched a third Thani. Some listed developers launched their projects over the past project in the Wongamat area in the last quarter of 2011. Quality House several years, while some listed developers launched their first projects Plc. just launched two new condominium projects in the Pattaya area in Pattaya during 2011 - 2012. and got good feedback from buyers. Sansiri plc. have recently launched their Baan Plai Haad development in wongmat and will be introducing a Most developers in Pattaya are local companies and they are very new project called The Base in Central Pattaya, aimed at the lower successful in the market. However, some condominium projects in segment of the market. Pattaya were also developed by listed developers from Bangkok. Raimon Land has been successful in Pattaya over the past three years with three Local developers in Pattaya have been rethinking their strategy in the projects under their belt. Prinsiri Plc. also launched a condominium market following the entrance of listed developers and the majority of project behind The Avenue Pattaya over the past few years. Major them continue to achieve high take up rates. Most local developers have Development launched a high-rise project in the Na Jomtien area been trying to develop their unit layouts and designs as well as project achieving a high take-up rate last year. In addition, some hotel concepts with more interesting, family friendly features such as water management groups also launched condominium projects in joint parks, large lagoon swimming pools and themes for example the Atlantis, ventures with condominium developers, at which the selling point is a Caribbean and Amazon concepts. Strong competition is a positive factor condominium project with five-star hotel management and facilities. The for all buyers, as developers strive to bring their projects and levels of most famous, capable developer in 2011 was LPN Development, as they finishing to a higher level in order to compete and retain market share. launched their first project in the Banglamung area along Sukhumvit DEMAND TAKE-UP rate OF LAUNCHED PROJects SINCE 2010 CUMULatiVE SUPPLY IN BANGKOK CUMULatiVE SUPPLY IN BANGKOK Source : Colliers International Thailand Research The average take-up rate in all locations of the Pattaya city market has The Na Jomtien area has shown the highest increase from the first six increased by around 7% from the first six months, because some new months of 2012, more than 10%, by reason of no new condominium projects from listed developers have had a high take-up rate; many projects being launched in the second half, while the other existing condominium projects by local developers also received good feedback projects in the area also had high take-up rates during the second half of from Thai and foreign buyers. 2012. The average take-up rate for Wongamat was the highest in the second half of 2012, due to only two new projects being launched in the previous six months. COLLIERS INTERNATIONAL | P. 5 PATTAYA CITY CONDOMINIUM REPORT MARKET | H2 2012 FOREIGN OWnershiP / DOMestic DEMAND In contrast to the last few years when foreign buyers were the mainstay not shown the demand as in previous years, however, buyers from of the Pattaya and Jomtien property scene, we are seeing a remarkable Australia have been notable throughout 2012 due to preferable exchange entry of Thai buyers into all segments of the market. For many years the rates. majority of the foreign-owned local development companies struggled to sell their 51% Thai requirement, however, there is now a shift in as much Emerging markets, such as India and China, have now started to put as many Thai listed developers coming to Pattaya achieve good take up their toes into the water.