Raimon Land Reveals Bangkok Condo Market Improvement

Raimon LandRaimon Land, once the most newsworthy property developer in Pattaya, always able to provide regular appraisals of the Pattaya Property Market has been somewhat quiet of late. However, for those keen to stay on top of latest national trends, you will be extremely pleased to hear that Raimon Land has just published their latest Condominium Focus Bangkok Update, which has some really excellent news for the property market in general, the most significant piece of information being that total Q4 presales totaled out at Bt15.1 billion, a rise of 380% from the same period last year.

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.

MahanakornAnother 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.

Bright 24Raimon 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

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