Pattaya Daily News

03 April 2009 :: 21:04:33 pm 1360

Major Developers Commit to Pattaya’s Elevation

CBRE‘s Suggestions to the Government to Encourage Foreign Investment CB Richard Ellis Thailand‘s CEO, David Simister is urging the country‘s new democratic government to introduce "a more welcoming policy" for foreign property investors, who constitute a substantial proportion of the property investors in Thailand.
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However, Prime Minister Samak Sundaravej took the first step in the right direction by urging that the 30% capital control be removed to help boost the economy and amend Thailand’s reputation with foreign investors; a measure which was implemented by the Bank of Thailand on March 3, this year.

Further inducements to foreign investors include a new tax incentive package which is also expected stem the recent drift away from Thailand by foreign investors as the Property Transfer fee will be reduced from 2% to 0.01% and Specific Business Tax for property transactions will be reduced from 3% to 0.1%.

However, despite encouraging promises made before the recent election by all the major political parties, the current leasehold of 30 years still holds and this is one of Simister’s further suggestions that leasehold agreements should be extended to 90 years. He also urged the government to introduce a business lending package to foreign property investors.

Introducing these measures would put Thailand on a par with neighbouring Malaysia and Vietnam. Malaysia currently offers 99-year leases and under Decree 84, Vietnam now offers extended lease terms of 70 years.

Obelisk international property analysts maintain that because of shifts in worldwide tourism trends, Thailand’s tourism market is experiencing a dramatic increase in longer-term rentals. There has been a marginal decrease in hotel accommodation, with villa and condominium rentals taking up the shortfall.

Thailand is increasingly becoming a highly popular tourist destination and its position as the preferred location in Asia for second home ownership has fuelled demand for resort properties, especially in Pattaya. The demographic profile of buyers is also changing, away from Asian-based expatriates to buyers from Northern Europe, Scandinavia and Russia. Future demand is expected to come from the emerging Asian middle classes, largely from China and India, who have more disposable income and are increasingly choosing to travel abroad for pleasure, especially to Thailand. The Tourism Authority of Thailand is predicting a 10% increase tourists in 2008.

Pattaya developers and real estate agents can well endorse the sentiments of Charlotte Filleul of CBRichard Ellis who has highlighted how the advantageous climate attracts retirees from Europe; Thailand’s rainy season being in European summer time means they are able to take advantage of the best of both climates.

Pattaya Becomes a Destination for Affluent, Well-Travelled Visitors

Pattaya tourist statistics rose in 2007 to 7 million over the year, making it Thailand’s most popular resort. As far as Pattaya is concerned, the property market has never been stronger as it continues its upward elevation to become a destination for the well-healed. The following are highlights from recent articles, including “Why Invest….Pattaya” by Nigel Cornick, CEO of Raymon Land, one of the major international developers which has declared its commitment to the Pattaya luxury market with its two most recent projects, Northpoint and the Lofts.

Eastern Seaboard’s dynamic economic growth (3 March, 2008)

· Eastern Seaboard’s dynamic economic growth is fuelling Pattaya luxury property market – driving its development as a high-end lifestyle destination.

· Pattaya’s economic fortunes are continuing to rise

· demand for top quality accommodation and facilities constantly increase

· property investors & many of Thailand’s property development leaders are increasingly attracted to the region, seeking solid long-term returns

· Bouygues – a world-class construction conglomerate – have made their first move outside of Bangkok to Pattaya, showing confidence in the Eastern Seaboard and its future potential for further growth.

· Eastern Seaboard (2006) is the 2nd wealthiest region after Bangkok (12% annual growth rate, post 2005 –NESDB*)

· GDP – Chonburi (Bt407,364 million baht – 9% annual increase) and Rayong (Bt527,366 million – annual 18% increase) – fastest risers in Thailand

· substantial middle class – platform for strong long-term gains

· lucrative long-term rental potential

· renters – business interests in the area / work for international companies

· management – renters / buyers – live Pattaya lifestyle/higher resale/ solid rental returns

· Rental yields – averaging 6-10% per annum / monthly rates Bt500 – 650 psm, / investments returning sustainable capital gains.

· Northshore, the first Raimon Land project – values show 80% increase, one of the benchmarks for Pattaya market – staggering speed of capital appreciation

· skyrocketing rates because very limited supply of existing high-quality condominiums. Prices continue to rise and no more than 1,000 to 1,200 units currently launched will be completed before 2011.

· more demanding for developers – rise in the quality of residential construction – investors demand high-quality standards of construction, design and finishes.

· design – form over function / aesthetics rather than functionality (high-end investors) , effective practical design.

· continued sustainable economic growth /ongoing rise in prominence / continued demand for high-quality residential properties, / savvy investors seeking strong rental yields and impressive capital gains

Pattaya Property Market Booming – (March 20, 2008)

· market rides on strong foreign investor expressions of interest

· Avid investors largely from Russia, the UK, Australia, Germany, and Sweden.

· Resale prices of luxury condominium projects up by 100%

· demand for luxury condominium projects located close to Jomtien Beach, Wong-Amat Beach and Pattaya Bay had risen strongly

· new project launches have been limited.

· resale price of luxury condominium projects in Pattaya have increased from an average of Bt74,000 per square metre in 2005 to Bt150,000 in Q1 08

· buyers of Pattaya properties – investment, returns 8 -10% pa

· 50% second home investment

· strong market demand – a number of property firms have launched new residential projects.:

· 19 new luxury condominium projects, ( 5,177 units) launched 2007 @ Bt30 billion.

a) 281 completed units in ’08

b) 1,115 units in construction completed ’09/10

c) 3,781 units to be built ’08-10

d) Raimon Land planning to launch a new luxury condominium project ’08 – “EDGE”, – an investment of Bt3.6 billion.

e) Raimon Land ‘s Northshore project has been very successful in Pattaya, worth Bt1.49 billion – it has already experienced presales of over 50 %..

All told, the Pattaya property market looks very promising for the foreseeable future.

Reporter : PDN staff   Photo : Internet   Category : Property

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