Now granted Pattaya is not Bangkok in terms of property predilections, as Raimon Land themselves found, but nevertheless, the news is especially heartening for the mid and high sectors, especially the latter, which has suffered most in the recent recession. The top-end, well known developers inevitably did best, with Sansiri, Asian Property (AP) and Noble witnessed sustained growth with condominium presales increasing by 133% year-on-year, and a significant burst in the latter end of the year, so much so that confidence returned to such a degree that developers began to launch new projects in the inner city. Thus, these two property market developments alone, indicated a significant return in confidence, both for developers and consumers, but also the fact that these were off-plan, a high-yield, but also high risk sector of the market, which had lost much of its appeal due to the less than savory reputation it had gained in the 2007 boom period.

Another significant revelation in the Condominium Focus Bangkok Update was that domestic demand, at over 90%, by far outweighed foreign, which showed a lowly 8.8%, indicating that Thailand’s reputation had suffered significantly on the international stage; a development which astute local investors presumably took advantage of.

Raimon Land Deputy Vice President for Research and Development, Simon Dervillé, stated “At Raimon Land, Thai buyers now represent two-thirds of our sales, gaining significant ground over the foreign demand that was prominent over the past two years.” This shows a complete reorientation of the buyer profile, perhaps indicated in Pattaya by the fact that the majority of projects advertised are by Thai developers, who despite the fact that they have recently been taking on more speakers of English and other European languages to interface with the foreigners, probably feel most at home with their own nationals. This despite the fact that loans had also reduced considerably from Bt2.9 billion last year to Bt1.8 billion recently, both for developers and customers.

This was probably an indicant of the banks reluctance to release new loans for condominium projects, despite the reduced costs represented by lower construction and material costs, as well as reasonably priced, quality land plots.

The implication for Pattaya real estate agents and developers is that more effort will have to be made to target Bangkok residents, both when they are at home and when they come down for the weekend to enjoy themselves or prospect for weekend/holiday investments.

SOURCE: Pattayadailynews.com

The Pattaya real estate market slowed last year and will remain sluggish in 2010 because of political tensions, he said. But he expects the market to recover from 2011 to 2014.

Pattaya real estate hit a trough last year after enjoying annual growth of between 10% and 15% from 2004 to 2008.

Tourism has also struggled because of the global recession and concern about Thailand’s political strife. Tourist arrivals to Pattaya dropped by 22% last year and revenue from tourism sank by 35% because of lower spending per head and shorter stays.

Property and tourism in Pattaya still face many risks, Mr Jugkarut said. Hotel occupancy could fall by more than 40% due to an oversupply in hotel rooms. The property market also remains heavily dependent on foreign demand, while foreigners’ buying power has been hit hard by the baht’s strength.

The condominium market faces an oversupply that will take from three to six years to absorb, while property is overpriced and exceeds demand, he said.

Another risk is a lack of confidence. Buyers fear projects may be suspended. Purchasers may also be unable to complete payments.

“You should maintain a debt-to-equity ratio at 50:50. A loss is better than lack of liquidity, especially in a crisis,” he added. “Developers need to be more careful about units that can be sold and completed but cannot be transferred.”

He said developers should sell when buyers want to buy and always be ready to adjust the plan when needed.

While size and capital are unimportant, familiarity with a location is a bonus.

Land accumulation is another advantage as it accounts for 30-35% of development cost. And networking is essential, he said.

“If property prices rise by 20-25% a year on average for five consecutive years, an exit strategy should be applied. This is a sign to step back. Remember that risk management should be always done.”

Mr Jugkarut said developers should develop their long-term competitiveness by building a strong product character, accumulating capital and prime land plots, expanding to other supporting businesses and establishing expertise in a specific product or market. “For Pattaya real estate, treasure is waiting ahead,” he said at a seminar held by Real Estate Information Centre last week.

“But if you reach out for it today, you may get hurt. [You should] wait for a right time. Investors and developers should know its [Pattaya real estate's] life cycle. 1997-2000 was its bottom, 2001-04 was a recovery and 2005-08 was a boom.”

If investors are interested in the Pattaya property market, they should know the buyer profiles. Most of the city’s property buyers are foreigners from 15 or 20 countries.

“Foreigners from each country gather into a group, clearly reside in a separate zone and don’t live outside the zone,” he added. “For example, Russians live in Wong Amat, Germans live in Na Klua and British live in Khao Pra Tamnak.”

They also prefer to buy property from companies from their countries or from salespeople who speak their languages.

“You also need to understand the financial conditions and economies of their countries while your products must be customisable.”

SOURCE: Bangkok Post

The 376-unit development located on Wong-Amat beach offers luxury units, duplexes and penthouses ranging in size from 50 to 800 square metres. It was recognised as the Best Condo Development on the Eastern Seaboard at the Thailand Property Awards 2008, and also boasts Thailand´s number one golfer Thongchai Jaidee as an owner.

Raimon Land Chief Executive Officer, Hubert Viriot, said the selection represented Raimon Land’s vision for Pattaya as a high-end, outdoor lifestyle destination.

He said: “We are thrilled to team up with Savills Thailand as property managers and leasing agents for our Northpoint development, as they have both an in-depth understanding of the Pattaya property market and a highly successful track record in managing high-end residential projects, making them the ideal choice.”

SOURCE: Property-Report

ERA CEO Voradet Sivatachanon says a regional franchise will open in Pattaya.

The company will start with a regional franchise in Pattaya that will act as a real estate broker for five neighbouring provinces. This franchise will focus on reselling holiday homes, as the company anticipates stronger demand from both Thais and foreigners following the economic rebound.

Voradet Sivatachanon, ERA’s chief executive officer, said the company would use its regional network of brokerages in Singapore, Malaysia and Indonesia to enhance its prospects.

“Based on our pilot tests in the second home or tourist home market, we feel there are many buyers with sufficient savings to buy a unit immediately,” he said.

The company also plans to launch ERA HomeBase, a mini-franchise where real estate agents operate out of their home. It expects to collect 6% royalty fees.

The Thai brokerage now has 28 franchised branches with 1,635 agents. It anticipates 10 more branches and 1,000 more agents next year.

ERA experienced better business this year as both small and large property developers appointed the company to help market their products.

It has about 13,000 listings, up from 10,000 last year, with an average price of 3 million to 7 million baht. About 35% of the listings are single houses, 35% condominiums and the other 30% townhouses and land plots.

Mr Voradet expects 50% sales growth next year from an estimated 2.2 billion baht this year. The overall second-hand housing market is projected to grow by 10% next year to about 100 billion baht.

SOURCE: Bangkok Post

Daika Estate

Pattaya, the 3rd of December 2009 [PDN]: The Daika Estate Company which is the property development arm of the Daika Group has announced that it will commence development on a new luxury condominium project at Wong Amat beach, Pattaya, in the first quarter of 2010. The value of this new complex is estimated to in the region of 2 billion baht.

Pattaya Condominium

Dr Atichartakorn explained that, “The high-end market there (in Pattaya) is not very competitive with over 10 big projects being delayed this year because foreign investors delayed their decisions (due to) the weakening dollar against the baht.”

The planned development will consist of at least 100 condominium units with an average price of 80,000 baht per square meter. The project is expected to be built on the Wong Amat Beach were the Daika group already have a project that commenced construction in 2007.

The Daika Estate’s existing development on Wong Amat Beach “The Sanctuary Wong Amat Condominium Complex” is located on a 9-rai block of land, consisting of 200 condominium units with prices starting from 5 million baht. The development is expected to be completed within the month of February 2010. Although the sales market has stagnated over the last year, 120 of the 200 units have already been pre-sold to a variety of foreign and Thai investors.

Pattaya Beach

SOURCE: Pattaya Daily News

Thongchai Jaidee

As a brand ambassador for Raimon Land’s luxury Northpoint project, Thongchai Jaidee has selected the exclusive Northpoint condominium as his home of
choice when he is taking time out from travelling to compete in some of the world’s most prestigious tournaments.

“I’m delighted to have chosen Northpoint. Outside the tournament season, I like to spend time relaxing with my family, and Pattaya offers us everything we need,” said the winner of numerous Asian and European PGA tournaments.

“Wong-Amat is the most picturesque and secluded beach in Pattaya, and there are over 20 championship golf courses just a stone’s throw away. I can’t wait to move-in.”

Raimon Land Chief Executive Officer, Hubert Viriot, said: “Pattaya is one of the top golf destinations in South East Asia. We are thrilled to have Thongchai Jaidee as a resident. His success provides a great boost in raising awareness in Thailand as a leading golf and luxury lifestyle destination among local and overseas golfers.

Mr Thongchai is also at the forefront of a new promotional campaign for the up-market twin-tower condominium complex. Customers purchasing a unit from October 1 to February 28, 2010, will receive a complimentary Northpoint Lifestyle Package valued at more than THB150,000. The package includes a two-year membership at the elite Siam Country Club golf course, which regularly hosts world-class golfing events and tournaments. The club boasts 36 championship holes and is just 20 minute’s drive from Northpoint.

Northpoint residents will also receive vouchers for a two-night stay in a five-star Pattaya hotel, stylish fine dining at a luxury restaurant, and an upmarket local spa.

“Pattaya is a destination in itself and Northpoint is set to become a core residential feature of the city. The fantastic package we are offering is just the tip of the iceberg of what Pattaya offers to our residents all year round in terms of outdoor activities, fine dining and wellness and spa escapes”, said Viriot.

Recognised as the “Best Condo Development Eastern Seaboard” at the Thailand Property Awards 2008, Northpoint sits on 12 rai of landscaped gardens along 80 metres of Wong-Amat beachfront, and offers a mix of luxury units, duplexes and penthouses as well as a generous array of facilities including sky gardens, a fitness centre, swimming pools, a kid’s pool and slider, and tiered sun decks.

Northpoint will be showcased at the upcoming sales exhibition at Central Festival Pattaya from October 22 to November 2. Space: 2/F. (Zone P2D)

Bangkok Super Highway

This is not to say that the market is flat, a number of Developers and Agents have reported that things seemed to have improved of late, however with a lack of foreign investors we raise the question “ Should agents and developers be looking to capture the Thai market?

Our research shows that in the current financial climate, agents and developers should be looking to sell to the Thai Domestic market, due to the lack of Foreign Investment

This article has been inspired by the fact that wealthy Thais, the one’s that tend to invest in property do not on the face of things seem to be changing their lifestyle a great deal.

The writer is a regular patron at Mumaroi Seafood Restaurant in Naklua, for those of you are who are not familiar with the restaurant, it is direct beachfront with seating for 1000 people outside and for a further 200 people inside. It is not the most expensive restaurant in the area but certainly not the cheapest with an average meal for two with wine ranging anything between THB 2500-5000. Week in week out this restaurant is full, weekends especially people are waiting for a table. 95% of the clientele is Thai. A walk around the car park and one will see an abundance of Mercedes. BMW’s even the odd Ferrari or Porsche, not to mention Mini’s emblazoned with Union Jack Roof’s and wing mirrors. So looking into all of this, are these people suffering?

A natural starting point had to be Ananya Condominium, as their showrooms actually sit on the site of Mumaroi’s and the development sits along the same stretch of beach as Restaurant. This is a high class project, direct beachfront, low rise exclusive and with prices ranging from THB 9million-THB 42million. So on investigation we were advised that Phase 1 sold out to Thai, Chinese and Japanese customers with a scattering of European buyers. Phase 2 we were told continued in a similar pattern with the majority of buyers being Thai. The developers have done marketing to the foreign market and naturally have employed local foreign realtors to market the project and this has resulted in Foreign Investment, but in recent times interest has slowed, although interest from Thai’s has remained high.

In a lower price range of THB 2million-THB 11million Apus Condominium is project that has also seen a lot of success marketing and selling to Thai’s. At the launch in January 2009 (not exactly the best time to be launching a brand new project) the developers did very little marketing in English and decided initially to sell to the Thai market. This resulted in sales of 40% in the first 6 months with nearly 90% being Thai investors. Payment terms were competitive for the buyer but not so for agents, so initially even Real Estate Agents were not on board. Only at this point did the developers then plan their detailed marketing campaign in English. We spoke to Apus Marketing Director Jason Payne about this approach.

“Initially we were unsure if this was the way forward, but we knew Thai’s were still buying, our website was dedicated to the Thai Buyer and we marketed a lot in Bangkok. I personally had concerns that being English that I would have to rely on my sales team negotiating all deals with the buyers, but I quickly found this not to be the case, the opposite actually with a lot of our buyers from Bangkok wanting deal with senior management or at director level. It has been a pleasure dealing with articulate educated Thai investors. Buyers came, sales were made in a market where all we was reading about was that nobody was selling, we were seeing extremely positive results. The first 6 months allowed us to concentrate on building so we could show the foreign buyer who we knew was still out there that we were going to build and complete the project, this approach did come with a few downfalls initially as I think that a lot of expat agents and “local experts” had the impression that we were a “Thai only” project and thus quality and reliability may have been questioned. As soon as we started our English Marketing campaign, in local magazines such as The Trader and other quality publications, revamped our website to an international site in English, Russian and Thai, and we went out and spoke with Local agents I think attitudes changed. Sales are now approaching 70% and we have received a lot of interest from Foreign Investors. Although I have to say that interest from Thai’s is also strong”

Asked if Jason felt that it was the right approach? “For us at that point in time, yes I feel it was the right decision sales results have proven this. January when we launched the project was a time when some agents and developers were thinking about throwing in the towel, we had issues with developers stopping construction, foreign investors questioning whether or not the projects they had invested in were even going to start let alone be completed. However a marketing campaign in English, Russian and Thai from the very beginning would of, given us an edge in branding our product. My own personal opinion buyers are still out there whether it is Thai or Foreign but naturally in this current economic climate buyers are far more cautious and rightly so”

Finally, to Raimon Land and their, Condominium Focus Report. “In Sales volume terms for Raimon Land’s projects in Pattaya, Thais accounted for 25% of the purchases in H1/09 ahead of Russians (20%), British (11%), Chinese (7%) and Americans (5%). This is a fact that sales rely this year more on domestic demand, particularly Thai Nationals. These Buyers were also relatively young, with 56% between 31-50 years of age and 21% under 30 years, while only 23% were 51 years and over. The majority of these buyers purchased studio units (68%) followed by 1- bedroom (18%), 2- Bedroom units (9%) and 3- Bedroom units (5%). When all buyers were asked the reason behind their purchases 50% said they bought as a holiday home.

Raimon Land views this demographic as a trend shifting towards younger generations seeking affordable, compact Pattaya Condominiums, not necessarily beachfront, as holiday homes offering sound investments that are easily accessed from Bangkok”

So in conclusion it seems that these developers have all decided that marketing to the Thai market is a way of giving them higher sales figures in this current financial climate. It is not their sole focus but an important aspect of their International marketing campaigns. So to my original question whether or not wealthy Thai’s are hurting as much as the, Foreign Investor? From the reports from these 3 well know Pattaya developers the answer seems No. Young Thai Nationals seem to be still looking to Invest in the Pattaya Real Estate market, and it seems they have the funds to do so.

Apus Condominium Pattaya, Thailand will surpass the dreams of the most discerning buyer seeking that rare commodity – the perfect value for money combined with 5 Star facilities and that ‘homely’ feel.

Wednesday 14th October 2009[PDN]: – Much of this property auction success is due to the professionalism of Pattaya’s experienced English Auctioneer, John Collingborne, who conducts weekly general household auctions at his “Collingborne Auction Rooms” on Jomtien’s Soi Chaiyapruek-2. Property auctions have occasionally been tried in Pattaya with varying degrees of success: – Some very successfully with a month of high powered promotion and others with limited effect for various reasons.

This first monthly “Fire Sale” property auction has been successful, thanks to the professional approach being taken by English Auctioneer, John Collingborne. In his lead-up prior promotion advertisements John stated, – “No Dreamers Please,” because while there is opportunity to pick up properties, that are in many cases reduced to below cost price, bidders could not steal them for ridiculous prices.

SOURCE: Pattaya Daily News

Pattaya condo

Where I live on the Eastern Seaboard of Thailand, there are well over 300 Property agents and agencies hanging their shingle as purveyors of land, house and all other manner of abode. From corporate conglomerates like Colliers and CB Richard Ellis to humble little shop-house operations like “Location, Location, Location Property Partners”; everyone wants a piece of the real estate pie.

This past week I had the formidable task of sorting this list down to a manageable target and visiting those I thought were most capable of renting or selling my condo near Jomtien Beach. The agent who sold me the unit is the best candidate as his firm also built and now manages the low-rise luxury building. Naturally I listed with him. But, in Thailand there are no rules or even a clearly defined etiquette regarding property listing or sale. So, I decided to go on a road show, listing with as many agents as possible.

Lucky for me, my sales agent gave me a short list of companies that met 3 criteria; 1) they were familiar with the building 2) they were familiar with Jomtien Beach and 3) they advertise a lot.

My first visit was to Alan Bolton Property Consultants, a big slick agency that inhabits a huge chunk of ground-floor shopping mall space in the center of town. I saw at least 6 foreign agents and a handful of Thai helpers busily moving about, clicking computer keys and carrying on animated phone calls. The agent who helped me was a young Irish guy with spiked hair and a ridiculously thick accent. He efficiently loaded my pictures and information from my thumb-drive, had me sign the commission agreement, and I was out of there in 15 minutes.

There was no offer to visit the property. My listing would be added immediately to the website. Since the condo photographed well, my listing would be included in the next double page space ad in various local property publications. This was quite obviously a media-lead driven organization. I left wondering how they wrangled all those foreign work permits.

The next stop was what I thought was a mega-shop called Fair Properties. This company advertises heavily and takes up a big corner on a main road between Pattaya and Jomtien Beach. It’s the kind of building people reference as a landmark when giving directions. The giant storefront windows are plastered with dozens of property listings facing out for passersby to ogle; an oversized blue-and-white sign hanging over the road.

Inside the place looked like an empty airplane hangar. In the corner sat one pitiful desk with a young Thai girl slumped over her keyboard eating fried rice and playing video games. After we settled on a language somewhere between Thai and English, she accepted my thumb-drive and jammed it into her computer. Within 3 keyboard strokes she erased all the files on my thumb-drive and staring at me blankly proclaimed, “mot lao”. Roughly translated this means, “finished already”. In other words, she was telling me nothing was on my storage device. She went back to attending her rice and Pokemon game.

Stunned and amazed, I stumbled a few doors down to another well publicized local agent, Seaboard Properties. The place reminded me of one of those “Ice Bars” that are so popular now. Everything was stainless and hospital white. The air conditioner turned down to “glacier”, the 4-girl staff had to wear a few layers of clothing to keep their teeth from chattering.

Three of the agents were clones of each other; manicured, coifed and immaculately dressed in little “Jackie-O” outfits. The fourth agent, and obviously the boss, was an older Asian lady from somewhere other than Thailand. She checked my thumb-drive and confirmed that the information had been erased. “Sometimes they just keep pushing the buttons” she said, apologizing for her “competitor” a few doors down.

Miss Ja, the English speaking clone, helped me fill out an information form while one of the other clones served me a really nice cappuccino. When I left Miss Ja gave me a card with a reference ID number on it. She told me to e-mail the information and my listing would be up in 24 hours. An appointment was made to visit the condo the next day.

During the next week I would visit 7 other property agents. Every experience as varied as the first three. I stayed away from big multi-nationals like CB Richard Ellis as they tend to represent cadres of big developers and really have no interest in selling or renting my one unit for a measly 5% commission. I also avoided the really small mom and pop operators as they tend to be “buyer’s agents” interested more in bargaining than transaction.

Two weeks on, I am reviewing the efficacy of my effort as well as the agents.

Of the eleven agencies I listed with, 6 had me on their website within 48 hours. All 6 featured my listing as “new” or “hot” or some other promotional heading. 3 placed my condo in space advertising in one or more local property and investment publications. 2 visited the property before showing it (counting the agent who sold it to me).

To date the property has been seen by 8 prospective buyers. All were with the 2 agents who had actually seen the property before showing it. It doesn’t take long to separate professional realtors from “list it and they will come” property mills.

But, if the truth be told, I wouldn’t really appreciate the 2 outstanding agents if I hadn’t been exposed to the 9 others. Kissing the property frog … it’s a matter of research really.

About the Author: Bart Walters is a retired advertising executive from Orlando, Florida. He is now a part-time real estate developer celebrating his 10th year in Thailand. Bart lived several years in Bangkok, spent 3 years on the island of Phuket and now resides in Ban Amphur on Thailand’s eastern seaboard.

To view the condo he has for sale go to either http://www.towncountryproperty.com/condos/jomtien-condo/15401.html or http://www.seaboard-properties.com/?page=property&id=1439

[Editor’s note: I have corresponded with many fantastic people during my time with Escape Artist but Bart Walters is by far one of the most entertaining and genuine people I have had the pleasure to be in contact with. Bart writes about life in Thailand and permits me to use his work in exchange for a link back to the charity website that raises money for an orphanage in Thailand. Please take a moment to visit the site, donate if you can and help support a good cause. Please go to www.care4kids.info Thank you

About 90% of beach land in Phuket is controlled by foreigners through Thai nominees, a leading research body has found.

A similar situation exists in other prime tourism destinations in provinces such as Chiang Mai and Rayong.

Local officials and legal experts have helped clear the way for foreign investors to take control of the country’s rice farms and property in resort provinces, according to research on foreign land ownership by the Thailand Research Fund.

TRF called a seminar on the research findings yesterday attended by economics and legal scholars.

There recently has been speculation that foreign businessmen, particularly from the Middle East, were snapping up rice fields in the central plains and elsewhere through proxy local companies.

Transnational business consortiums were said to be holding the land through Thai nominees, which is against the law.

Some farmers are leasing land they previously owned but have since sold to the foreigners’ proxy firms, observers said.

Siriporn Sajjanont, from the economics faculty at Sukhothai Thammathirat Open University and a member of the research team, said the study showed many kinds of property had been bought by foreigners through Thai nominees.

“About 90% of land along the coastline in Phuket is controlled by foreigners through Thai nominees,” she said.

Foreign investment capital was essential for developing Phuket and Samui, as Thais do not have enough money to invest themselves, Ms Siriporn said.

The coastal areas most sought after by foreign investors were Pattaya in Chon Buri, Koh Phangan and Koh Samui in Surat Thani, Phuket and Hua Hin in Prachuap Khiri Khan.

In Chiang Mai, foreigners had used legal loopholes to exceed the limit on sales of condominium units, Ms Siriporn said.

There was evidence they hold the property through Thai nominees by marrying Thais. In some cases, Thai women were asked to register the foreigners’ property in their own names.

The study found similar problems in Rayong involving foreign landholdings through Thai nominees with foreigners marrying Thais.

In some land lease cases, the period of leasehold was unusually long, Ms Siriporn said. The study found that some lease contracts stated the leasehold was “for life”.

Land ownership by foreigners had been made possible by their Thai lawyers who had found legal loopholes to clear the way for foreigners to take control, the research found.

Village heads also had acted as land brokers to arrange sales of state land given to local people so they could make a living, the panellists said.

Village heads were close to residents and knew which prime land was available.

Some legal entities had been set up with 51% of shares held by Thais, although those Thais turned out to be mere legal advisers for foreigners and had no power to run the legal entities, Ms Siriporn said.

“We also found the same people had set up many entities,” she said.

Some entities’ regulations on shareholding structures allowed foreign shareholders more power than Thais in running those entities.

Col Surin Pikulthong, president of the Community Organisations Development Institute, said he had received information that Hmong people in the US had provided financial support for Hmong in Nan province to buy land and grow rice for shipment to the US.

Silaporn Buasai, vice-president of the institute, said she had heard that investors from Taiwan had bought land here for growing oranges to be sold in Taiwan.

Wichian Phuanglamjiak, vice-president of the Thai Rice Growers’ Association, said rice farmers held additional information on land grabs by foreign investors.

He said the problem had remained unaddressed for too long and no state agency had taken the matter seriously.

Mr Wichian said farmers were pinning their hopes on the Department of Special Investigation to pursue the matter.

DSI investigator Pakorn Sucheevakul on Saturday said the agency was investigating four Thai companies in Ayutthaya which own rice farms of almost 10,000 rai.

Malee Antasin, 59, a farmer in Ayutthaya’s Bang Ban district, said businessmen had bought many plots in her village since 1995.

She said she had felt “besieged” and pressured to sell her rice plot as her land had been enclosed by other plots owned by those investors. She was now taking the matter to court.

Writer: PENCHAN CHAROENSUTHIPAN
Bangkokpost.com