A recent report from property services firm Knight Frank Thailand suggests that emerging locations from Jomtien to Na Jomtien are set to become major condominium development plots, driven by several factors that give the area a number of benefits over other locations in Pattaya.
These factors include improving ground transportation connectivity via a second road that runs parallel to Jomtien Beach Road for about 400 metres, and many new attractions such as the Jomtien market; two water parks – Ramayana, the biggest water park in Southeast Asia and Cartoon Network Amazone, which are both due to open soon; and the Grand Kingdom shopping mall by listed developer Nusasiri,, drawing families with young children and shoppers to the area.
The Jomtien and Na Jomtien coastal area is seeing an increasing number of new developments spring up in line with an improvement in infrastructure and transport connections.
Less than one kilometre south of Pratumnak Hill, the area at the northern end of Jomtien is considerably busier than the southern end, more formally known as Na Jomtien, which is, for the moment at least, more peaceful and tranquil, with less traffic passing through.
Statistics from Knight Frank Thailand show that the cumulative condominium supply of Pattaya, Jomtien and Bang Saray in the first half of 2013 was recorded at 40,939 units, an increase of 32.9% over the end of the second half of 2012. The new condominium supply increased healthily in the first half of 2013, with approximately 10,153 units of 20 condominium projects entering the market. The last 12 months also saw many listed developers, such as SC Asset PLC., Sansiri PLC., and Supalai PLC, entering and developing condominium projects in the Pattaya market.
Matrix Developments Amazon project is well on the way to completion and will be the first large resort style condominium in Jomtien.
The Jomtien property market demonstrated robust and continuous growth throughout 2013, due largely to the abundance of remaining land plots, with approximately 4,247 units launched during the first half of the year, or around 42% of total new launches. Since the new Jomtien Second Road extension was finally connected to the major road into Pattaya, the Jomtien area has now become more attractive for large-scale condominium resort developments.
The north Pattaya/Wongamart area achieved the second-most popular slot in the city, with a total number of new launches at around 3,114 units, or about 30% of the total new launches in Pattaya. North Pattaya/Wongamart is considered a peaceful area favoured by Thai condominium buyers and it is also quite a new area for condominium development for both local and Bangkok-based developers.
Blue Sky Group recently opened the showrooms for their Venetian Signature Condo Resort in Na Jomtien.
The total number of new launches in south Pattaya was 1,800 units, or 18% of the total new launches. The south Pattaya area is considered to be a busy locale due to its many shopping malls, restaurants, and entertainment spots. It is thus more crowded and not as attractive for residential development as other areas. The total number of new launches in Pratumnak accounted for only 992 units, or 10% of the total new launches.
The report by Knight Frank Thailand indicated that the demand for Pattaya condominium units at the end of the first half of 2013 totalled 21,614 units. During this period, the take-up rate increased from just 50.3% at the end of 2012 to 51.7% during mid-2013.
There were approximately 5,682 units sold during the first half of 2013, with, not surprisingly, demand being the highest in the budget condominium segment where the selling price was in the range of THB 1 million to THB 2 million per unit for compact units of around 25 to 30 square metres in size. Typical buyers of these units were Thais working in the Eastern Seaboard area, Bangkokians desiring a second seaside home, and Russians seeking an escape from the harsh winter in their home country.
The selling prices of condominiums in Pattaya vary according to location and views. There are some high-rise projects located further from the beach that still boast sea views. The highest selling prices were in north Pattaya, where many of the condominium projects located near the beach and providing sea views sold for over THB 130,000 per square metre. Other projects in north Pattaya, with no sea views, sold in the range of THB 55,108 to THB 71,250 per square metre.
However, due to the scarcity of beachfront land now available in north Pattaya/Wongamat, most sea view projects being launched during the first half of 2013 were located in the Jomtien and Pratumnak areas. The selling price of new launched sea view condominiums in Jomtien was in the range of THB 91,372 to THB 140,000 per square metre while the average selling price in Pratumnak increased from THB 77,610 per square metre in 2012 to THB 89,010 per square metre in the first half of 2013.
The Knight Frank report concluded by saying it expected to see new demand for Pattaya condominiums from local Thai buyers, particularly for projects located in north Pattaya/Wongamart, due largely to the many restaurants, retail outlets, and shopping malls that are already in place. The more tranquil condominium projects situated in Jomtien are very popular for visitors from Russia and Scandinavia who are looking for affordable condominium units in this thriving holiday destination as a second or vacation home.
(Source: Knight Frank Thailand)