Pattaya Propert Bubble about to Burst?

There is great debate at this time about over supply of properties in Pattaya and fears that there is a property bubble looming ready to burst as it it did in 1997 and left many Pattaya properties empty and either losing value or facing a long period of stagnation.


This stagnation has certainly appeared in many western property markets with property in The US, UK and many other countries losing value massively. For those with capital to spare, or as a friend said "More money than sense" Pattaya may get them smiling in more ways than one.

There is certainly a greater demand for condos, houses, apartments in Pattaya now than in 1997. The first of the western baby boomers turned 65 this year and many of the boomers will find that retiring and living in Thailand is cheaper, is a great location to live and also has decent medical facalities to service the immediate and future needs of an aging retiree.

Nowadays farangs are not the only buyers of condos. Yes they were the major market back in the 90's and early this millenium. However nowadays the social structure of Thai society is changing rapidly and a new and expanding middle class of Thais, with disposable income is emerging.

Yes there are many new developments appearing up and down the coastline of Pattaya Bay and Jomtien beach. There are also many cheaper developments appearing further back from the beaches where land prices are appreciably lower. So who are buying them and living there?

Condos don't need to be at full-occupancy, as a matter of fact, from the perspective of the property company, they are happy when they aren't. Because a large number of them will be bought but unoccupied. Either as investments, or simply for the value to show on someone's books, or with a Thai who is trying to buy it and making payments before they can take occupancy. The people who end up holding the bag for excessive building are Singaporeans, Chinese, Koreans, some farangs, and a lot of Thais who end up with a condo they can't move for the price they paid. Just as the people who end up holding the bag for excessive retail space isn't the bank, but the retailers who come and go (all paying deposits), etc. There is a lot of cash in the Thai economy in the middle-class and upper-class spectrum. And a lot of the people with that cash are looking to invest.

So is the bubble about to burst? or are the Pattaya Property agents right with there persistant dsales pitches extoling the vitues of investing in property in Pattaya

VT7 to be Demolished New Court Case Filed Against View Talay

View Talay 7 never goes away but yesterday that conclusion came one more step closer to reality as a new court case was filed in the Administrative Court in Bangkok.

Posted on the long silent Stop VT7 Blog

"Today was a historical day in Bangkok. Srisuwan Janya chairman of Thailand’s Global Warming Association (NGO) with others Thais files court case in Bangkok Administrative Court. I was invited to witness this historical action in the making. My understanding this suit is asking the government to demolish all parts of VT7 over 14 meters in hight."

I knew that this court case against View Talay was in the offing but considering the current climate, and I am talking global climate here not the local political climate in Thailand, I am truly surprised.

Of course many applaud the guts of this local NGO to tackle a monolith like View Talay. This group are certainly pushing out the boat to ride the wave of global warming hysteria. Unfortunately this boat that is meant to be a Thai version of Noah's ark could well turn into a Thai Titanic as the current surge not in temperatures but in a global warming realism that the world has been scammed.

This NGO does have a strong track record having been involved in many environmental challenges around Thailand in recent years. Recently many major industrial projects in Rayng have been put on hold or scrapped on the wave of 'Eco Politics' that this group of eco nuts have generated.

So the story goes on and on and on. Will they be successful? Will VT7 be demolished?

Better be quick before Global Cooling envelopes the world and Al Gore's hot air turns into snow flakes falling on Dongtan Beach

Russian Condo Buyers Have Disappeared from Pattaya

In 2007, Russians accounted for 80 percent of the condo purchases in Pattaya, a resort city on the Gulf of Thailand, says David Walton, v.p. of sales and marketing for Waterfront, a tower project on Pattaya Bay. Today, the Russians buyers have practically vanished from Thailand’s beach cities, he says.
“The only game in town two years ago was the Russian market,” Mr. Walton said. “That market has virtually disappeared.”
Developers tell similar stories in markets around the world, from France to Bali. Waves of Russian buyers are simply gone from the landscape.
For Mr. Walton and the Waterfront , it is bad timing. The developer, the Bali Hai Company Ltd., backed by the Elran Group, a listed Israeli company, began marketing the 54-story project in August, just as the market plummeted. (Thailand’s tumultuous political situation hasn’t helped, either).
The 315 units in the tower are priced between 5.5 million and 65 million baht ($150,000 to $1.8 million). More Europeans are starting to explore Thailand, but not enough to make up for the lost Russians, Mr. Walton says. (He also said the developer was exploring fractionals as a way to generate revenue.)
“High season is not going to happen this year,” he said.

View Talay 7 Supreme Court Decision

The fate of View Talay 7 is still hanging in the balance. The next step in this long running saga will occur on October the 17th when the Supreme Admin Court will read out their decision about the appeal by Jomtien Complex residents with regard to stopping or not stopping of construction of VT7 Jomtien Beach.

Bear in mind this will probably not be the final ruling - just a ruling that has been before the courts for the last few months. The final decision still - it appears - rests in the hands of the Admin Court in Rayong.

However a curious twist to this story is that the decision by the Supreme admin Court will not be read in Bangkok but rather in the admin Rayong Court. Is there a reason for this? we will have to wait and see

Ocean 1 Tower Jomtien Gone Bust or just a Pattaya Rumour - Part One

Ocean One Tower Bust. Shocking news or is it? Billed as the most prestigious project to grace the rapidly crowding skyline on Jomtien beach Ocean 1 Tower has reportedly gone bust. The question mark in the opening statement seems not to refer to wether this true or not rather is this a shock or not.

Rumours have abounded the last few weeks, indeed the last few months. The site of Ocean One Tower was fitted out with a web cam to capture the images of frenzied activity that was anticipated and broadcast them via the internet to existing investors - yes apparantly there are more than a few who have paid big bucks for a piece of what was to be the biggest, as in tallest, residential project not only in Thailand but in Asia.

The web cams however have been recently capturing frantic activity of a constant stream of cement trucks coming and going. The concrete destined not for Ocean One Tower but for View Talay 7, the contraversial project that is rising in the now defunct shadow of this ill fortuned Jomtien real estate project.

For me the news is not a shock at all apart from the shock that I so nearly, very nearly, got drawn into this saga myself.

About 6 months ago I was invited by a senior investor in Ocean One to a meeting with the head of marketing for Ocean 1. Thank goodness that meeting did not go well or I could have been joining the queue of folks that will in the next few weeks be looking to get paid or salvage something from their not insubstantial deposits.

So what went off at this meeting and why did I not join the Ocean One team?Well check back on this Blog for part 2 and maybe even part 3

View Talay 7, VT7 Jomtien - Supreme Court Decision

Well I heard today was supposed to be the day of judgement for View Talay 7. However true to form the decision became a non-decision.

I have yet to glean the details but it seams that the Bangkok Supreme Admin Court were non too happy with the goings on at the Rayong court and felt that a more thorough investigation is warranted.

The Supreme court therefore in their supreme wisdon decided not to decide anything and a futher hearing decision or non decision is expected in a months time

Meanwhile View Talay decide to merrily build on or up whatever your view of VT7 is.

Prudence or Folly?

Well basically it ai'nt View Talay money that is lifting this eyesore skyward - it is the investors who in their wisdom put up money to buy "off plan" and can not get out of their contracts without losing huge amounts of money. Now they are caught between a rock and a hard place. Or should we say a rock solid Jomtien Complex group and a rather too close sandy beach

Ah well some you win and some you lose - We just wait to see who the biggest losers will be. I just hope it isn't the thousands upon thousands of other accross Thailand, not just Pattaya the investors who bought condos 200 meters back according to what they thought was the law only to find their retirement homes could face the arse end of a communist style concrete box rather than a tropical beach.

Buying Property in Hua Hin - Beware the Conmen and Scam Artists

This warning to foreign buyers of property in Thailand appeared recently. Although not mentioning Pattaya or Jomtien specifically by name this article does highlight some of the pitfalls that can and do happen every week in The Land of fewer Smiles. There are out and out conmen and scam artists working in any town and city in any part of the world. However here in Thailand they are aided not only by the gullability and naivity of their victims but also by the lax laws and regulations that give buyers of property little or no protection.

Hua Hin, Thailand - Ferdinand Krenz, 59, and his wife Karin, 58, visited Hua Hin as tourists, fell in love with the Thai beach resort and decided to spend their retirement years here rather than in cold Wuerzburg, their home town in Germany. "One of the reasons we came here is because the king has a residence here," said Krenz, a retired German army officer.

Hua Hin, situated 130 kilometres south of Bangkok, has a unique history as a royal getaway.
Thai King Prajadhipok, Rama VII, built his "Klai Kang Won" or "Far From Worries" palace in Hua Hin in 1928. Thailand's current monarch King Bhumibol Adulyadej, 80, an avid sailor in his younger years, has always spent part of the year at the seaside royal residence.

Over the decades, the resort has become a favourite summer retreat for Thai high society and more recently has drawn a plethora of world-class hotel chains and posh boutique getaways.

Tourists attracted to Hua Hin tend to be the family set, or middle aged couples, a distinctly different crowd than those drawn to Thailand's more raucous beach resorts such as Pattaya, notorious for its wild nightlife.

In recent years, many former tourists have opted to buy a home in Hua Hin, as Thailand's property boom extends to its resorts, angling for foreign buyers of second homes or retirement getaways. Unfortunately, some of these paradise seekers have fallen victim to scam artists
and con men, and Hua Hin has proved no exception.

A popular hang-out for the disgruntled foreign retirees of Hua Hin is the small office of Tuck Dechapanya, owner of the Hua Hin Hotline newspaper and founder of the Hua Hin Foreign Service Link Centre. Tuck, a spry 79-year-old Hua Hin native, has become a beacon of hope for foreigners who have been defrauded by dubious property developers, most of whom are foreigners.

The most popular scam is for developers to secure a deposit from a buyer and then fail to abide by the construction timetable, citing unforeseen delays. Unfamiliar with Thai laws, and wary of long drawn out court cases in a foreign land, many victims have approached Tuck for informal advice in the hopes that he will publish their plight and attract the attention of Hua Hin authorities to the scams.

"This is the king's residence," said Tuck. "I am upset by this business. I think Hua Hin will be worse than Pattaya if we don't do anything."

Things are slowly being done. On February 20, a provincial court denied bail for Italian national Mario Karmine Aiello, developer of the Golf Village housing estate, and forced him to swear he would complete his obligations to 13 foreign complaints who charged him with failing to fulfill his contract, leaving their properties without roads, utilities and registration papers. Aiello was released on bail five days later.

His case is just one of many pending.

"We have been waiting for two years and still our house isn't finished," said Krenz, who sold his house in Wuerzburg to invest in a 6 million baht (187,500 dollar) property at Orchid Villas, developed by British national David Allan McDonald.

"McDonald is just using our money to re-invest in other projects," said Krenz, sitting in Tuck's office. It is a common tale now in Hua Hin.

Donald Whiting and his wife Dolly Samson sold their home in Hawaii to invest in a 13.6 million baht (425,000 dollar) villa in Hua Hin, complete with guest house, tennis court and swimming pool.

The American couple claim that Greek national George Mastronikolis, a building contractor who also runs the Hua Hin Today newspaper, took their money and left them with an unfinished, sub-standard concrete monstrosity instead of the Thai-Bali style mansion they had dreamed of.

"This is a nightmare story," said Whiting. "No foreigner should ever get involved in coming here."

Mastronikolis denied involvement in the project, claiming it was his former partner Aiello's deal.

"There are some problems here," acknowledged Mastronikolis in an interview with Deutsche Presse-Agentur dpa. "Last year there was a slow down in sales and many developers didn't have the finance to continue a project, because their finance is based on new sales, so they stopped building." In most countries, such building practices would constitute fraud.

But not all property developers in Hua Hin are of the fly-by-night variety. Germany-based Engel & Volkers, for example, opened an office in Hua Hin last year and has been doing a booming business selling high-end projects where housing units cost between 10 to 90 million baht (312,500 to 2.8 million dollars).

"If people follow the rules and regulations it should be no problem," said Duangjai Kraus, managing director of Engel & Volkers Hua Hin. "But some people want to take advantage of others. That's where the problems crop up."

Duangjai noted that last year the Thai government passed a new law on allowing escrow accounts, designed to protect property buyers from unscrupulous developers by assuring contracts are met before the money is issued. "Hopefully the law will be enacted soon," said Duangjai.

I personally know of several conmen who have set up shop in Hua Hin. One such person based in Hua Hin Alan Johnson, an ex double glazing salesman from The UK, for example preys upon the naivity of new and established business people and then steals their business ideas and business data. So be careful out there. If you are aiming to spend mega bucks then hire a reputable lawyer and employ that most important of assests common sense and a gut feeling before investing in any property in Thailand or trusting the sweet songs of the foreign con artists in Thailand.

Pattaya Real Estate - A Five Star Market - Someone is Dreaming!

This article about the future of the Real Estate Market in Pattaya appeared in the major Bangkok newspapers recently. The article goes into depth about the changes in the tourist market with more visitors coming from Russia and the Far East.

It paints a somewhat rosier picture of the market than appears on the ground. Yes there have been many positive Pattaya property reports about new high class condo projects scheduled to start soon and planned for the near future. However the first sentence is very surprising "The growth in Pattaya's property market in just the last two years is nothing short of astonishing"

Read the article. I would be very interested in YOUR comments.

From what I have been hearing from out of work Pattaya Real Estate Agents the only astonishing thing seams to be that the plethora of Pattaya Real Estate Companies are surviving at all.

The growth in Pattaya's property market in just the last two years is nothing short of stonishing. There are a number of factors that have caused in this growth, such as the economic strength of the Eastern Seaboard, but none has been more important than tourism.

As an industry, tourism has created international awareness and prosperity, resulting in the establishment of impressive five-star infrastructure assets particularly in terms of transport, health and hospitality, which are directly benefiting the property industry today.

Pattaya has long been the biggest tourism destination for Thailand and continues to be so with an estimated 6.85 million visitors expected to have arrived in 2007, capping an increase rate of almost one million visitors every two years over the last five years.

Thais, who for years have travelled to the beach resort for weekends, remain the dominant group representing between 20% and 25% of total visitors.

The biggest change the destination is experiencing is the surging volume of visitors from Russia. From January to June 2007, a total of 558,608 Russians visited Pattaya, by far the biggest overseas visitor source, and a huge increase over the 482,587 arrivals from the destination in the whole of 2006. Visitor arrivals from South Korea, China and India also climbed significantly, by 81%, 25% and 51% respectively.

The tourism arrival profile directly reflects the nationalities who invest in Pattaya from around the world, with Russian buyers topping the list of investors in Raimon Land projects in 2007. They represented a sold value of almost 250 million baht or 22% of the total value of international investment with our company in Pattaya.

The Thai market continues to understand and profit from Pattaya too, with property investments totalling more than 200 million baht in 2007 in Raimon Land projects representing 19% of total investment. This is followed by the UK and Australia who each make up a further 10% and Germany with 6% to comprise the top five investor countries last year.

This should not obscure the diversity of investor markets in Pattaya, with the United States, Sweden, China, Estonia and Ireland all significant investors with a total of 1.1 billion baht invested with Raimon Land in Pattaya in 2007.

The strength of the destination, though, is not just about numbers. Much of Pattaya's allure is as a lifestyle destination due to the wide choice of upscale leisure activities that can be enjoyed throughout most of the year.

Pattaya's ability to offer a host of international sports and leisure activities, combined with all the conveniences of a modern and cosmopolitan city, now just 90 minutes from Suvarnabhumi Airport, is attracting investors sold on the destination's tropical lifestyle.

One example is the rise in the international yachting and sailing scene, with the 2007 Top of the Gulf Regatta attracting more than 500 sailors and some 250 vessels. The regatta was headquartered at Jomtien's Ocean Marina Yacht Club, one of Asia's top marinas. It includes a condominium complex, hotel and yacht club, and is capable of handling 500 yachts in the water and 200 in drydock. Further plans include the construction of the 32-storey San Mario Condominium with a 51-room hotel.

This type of luxury accommodation development characterises the more upmarket trend in Pattaya, where new hotel projects will result in a 50% increase in five-star room inventory over the next two to three years. In the last quarter of 2007, we witnessed the opening of Amari's Orchid Resort and Tower in North Pattaya, while Centara, Hilton, Movenpick, InterContinental and Le Me'ridien all plan to open upscale hotels and resorts between 2008 and 2010.

The development of a former beachside resort into a dynamic city offering an active lifestyle on its doorstep is a compelling investment for many nationalities and it is also something that has not been lost on the host of retirees investing in the destination.

Tourism has blazed the trail for much of this to happen. Now it is the turn of property developers to build on this platform, contribute to the local economy and to the happiness of investors, and those who want to live in the destination in the winter months.

This is the first in a series of three articles that draws on research by Raimon Land detailed in the upcoming publication, 'Why Invest ... Pattaya'. In the next article on Feb 18, we will look at rental yields and capital gains in Pattaya.

View Talay 7 - Admin Court Ruling - Implications for Present & Future Condo Projects in Pattaya and Jomtien Beach

View Talay 7 is on the move again. No it isn't going away - I am sad to say. It is once more going upwards, you know the way skyscrapers should when they are being constructed.

Now this is a fact. And about the only fact that can be accurately ascertained at this time. However the question is - why is View Talay now suffering from that Pattaya syndrome - an infrequent and unpredictable erection?

This sudden spurt, if you will excuse the pun, has certainly led to more questions than answers. For example why have they been allowed to start again?
Has the Admin court in Rayong ruled in favour of View Talay or are they just in favour of View Talay but not ruled yet?
Are you confused now?

That is another question. At the moment the questions keep piling up and the building keeps piling up.

If the court hasn't ruled and rules against VT7 in the future. Will View Talay be forced to remove the levels that exceed the apparently legal height of 14 meters? If the Admin court does rule, or has already ruled that they can go ahead what are the implications for condo projects in Pattaya that were built apparently legally at the minimum distance allowed to the beach only to find
that the goalposts have been moved and the referee is calling for a penalty.

That penelty will be extremely severe. It will open the door, or the goal, to any developer who manages to buy up land on the edge of the beach to build skyscraper after skyscraper. A veritable concrete wall along the beachfront of Pattaya and Jomtien beaches.

Future projects are in danger also. Take for example, and it's no small example Ocean 1 - that monolithic 90+ storey tower that is about to set it's concrete boots into the sandy soils of
Jomtien Beach. After months, nay years in the planning and millions of Baht if not millions of dollars at today's exchange rate the developers recently announced that they have received a building permit from City Hall.

When asked how the VT7 decision could affect the project a spokesperson pointed out that there was "no problem" as Ocean 1 is more than 200 meters from the beach.

Whoops!!!

So if View Talay is deemed to be legal that means that the 200 meters IN FRONT of Ocean 1 is going to become prime Real Estate. Who in their right mind is going to buy into the promise of uninterrupted sea views (at a premium price) when another monolith could spring up smack in front.

Funny old world isn't it?

The Spinnaker Condominium Jomtien - Positive Comments

Well I have been getting lot's of feedback from the article about White Sand Beach Complex and especially the Spinnaker Condominium project in Jomtien. Here is one comment left on the Blog. Certainly a very happy future owner.

tovenaar has left a new comment on your post "White Sand Beach Residential Complex , The Spinnaker...":
Today 18 Jan 2008 I was at the office of the Spinnaker and I was really surprised that they have sold allready more than 58%. I could not resist the beauty of this project and put my signature under the Contract.I can barely wait to see the completion of my Pristine dream home at this white sand beach .Congratulations to the architect and designers it is the utmost project I ever seen . Even more beautifull than in my wildest dreams. I feel so luky tat I can buy one.

When I first saw the pictures of this future project I was impressed too:

Will this property actually get off the ground? I love the artist impression pictures. However is it artistic license that has shown these high rise towers to be so close to the beach.

You can read more about the Spinnaker Jomtien on the property section of this website.

I haven't got round to visiting the site or sales office for The Spinnaker. Anyone have any comments - positive - or negative? Anyone else bought into the project? What are the prices?

9 Karat Condominium - Residents Opinions

9 Karat Condo in Pattaya surprised me enormously. My visit there left me with no doubt that the place is a dump. However other folks have other opinions. Below are some of them and they will probably surprise you. You can find out more about 9Karat Condo on our main website with pictures too

I lived at 9karat for a long time and I've found little bad to say about it. There is very good security and the problems of the past are just not found there anymore. I never saw anything "fishy" or suspect during my 1 year there. The staff are wonderful and the value is terrific in the best location in town. There's even various side roads if you want to avoid Klang altogether. Sukhumvit is mere minutes away. They also have a restaurant and motorbike rentals.

One side overlooks an elementary school. The other is a sea view. The sunset is unparalleled. The price is starting at 5000/month for a furnished rental. The pool is massive for those who enjoy doing laps. 24 hour in house uniformed Security runs to any calls to their private phone line. Just call out your room # and they come running in minutes. There's 2-3 guards on duty 24 hours a day. They have been helpful in countless ways.

Don't even compare 9karat to Nirun Condo. News headlines aside, 9karat has a large team of cleaners mopping the corridors daily and always flash a smile in passing. The garbage disposal is discreet and tidy (unlike Nirun who leaves the large garbage bins in front of each main door which is offensive and smelly if I have to make just 1 comparison).

If you have any questions, ask me because I'm a 9karat survivor and I would stay there again with no hesitations. I don't like 9karat bashing because I feel it's often made by people who haven't lived there or are misinformed. I have no ownership there, just a satisfied customer. I'm one of many.

Well said, I am typing from there now, been here for 2 years, it amazes me how people post here giving advice when they actually don't know any more than the OP, some people just like to be heard it seems, 9 karat has a few minor issues but doesn't everywhere,

POSITIVE

good location, good security (cctv throughout) friendly staff, good facilities (pool, shop, poolside resturant, laundry, fitness suite, wifi if you're close to my room) chea pnice, views from high floors facing west

NEGATIVE

Some room renovating going on continuously (sometimes very noisy although time limited after 12pm only) some maintenance issues (lifts etc) parking for bikes open to weather for most (my Honda Blackbird exposed to rain)

.

Read more about 9Karat Condo and other Condominium Projects in Pattaya and Condos in Jomtien Beach

Flannigan's Jomtien - The First Irish Pub in Jomtien - Opening Today

Flannigan's Jomtien - The First Irish Pub in Jomtien is set to throw it's opening party today. Guiness, Kilkenny, and more importantly John Smith's on draught. Rumour has it that the residents of Jomtien Complex will get a 50% dicount. Now that is just a rumour or wishfull thinking on some minds. Or is it the work of some leprechaun in the marketing department.

So being a resident of Jomtien complex myself I feel it is my duty to investigate this new pub in Jomtien and bring you a full if somewhat hazy report at the earliest convenience

White Sand Beach Residential Complex , The Spinnaker Condominium - Planned to Start January 2008

Announced recently is the White Sand Beach Residential Complex comprising a five star hotel, low rise condominium and two high rise condos called The Spinnaker Condominium. Good news to hear of some more developments on this stretch of the coast. This area should attract more Bangkok Thai investors who generally shy away from the 'seedy' image of Pattaya City.

Curious to note that this announcement comes just a matter of a couple of weeks that the prestigious project The Sails, which is to be the White Sand's neighbour, has been 'Put on Hold'

Apex Development Plc, formerly known as Sun Tech Group, expects to generate 6.3 billion baht in sales from developing the White Sand Beach residential complex in Pattaya from 2008-10. Apex chairman Pongphan Sampawakoop said the company would spend four billion baht to develop the 56-rai plot of land on Jomtien Beach in Pattaya.

"We plan to use our working capital of around one billion baht and borrow the remainder from banks to develop the Pattaya project," he said.

White Sand Beach, located next to The Sails and the Ambassador Jomtien Hotel, will comprise The Spinnaker high-rise condominium, The Island Lagoon low-rise condominium, as well as a five-star hotel with 300 rooms, which would be managed by the Mavenpick hospitality chain from Switzerland.

The Spinnaker has two buildings; the 42-storey North Tower and the 45-storey South Tower with the total of 303 units facing the sea. Selling prices start at 95,000 baht a square metre. The Island Lagoon includes a total of 240 units starting from 75,000 baht per sq m. Sales of the two zones will begin by the middle of next week.

Construction is due to start in January and would be completed in 24 months for the low-rise condominiums and 36 months for the high-rise condominium and hotel.

Mr Pongphan, who has 30 years' experience in the real estate business, led a group of investors to acquire a 78% stake in Sun Tech, which was completed early last month. Sun Tech, a steel manufacturer owned by the well-known industrialist Sawasdi Horrungruang, has already exited its business rehabilitation plan.

Apex now has property development as its core business. Amornsakdi Ketcharoon, senior vice-president of The Brooker Group Plc, the company's financial adviser, said Apex was preparing to improve its balance sheet by reducing the share par value to one baht from 10 baht each. The share premiums would be used to clear accumulated losses of 1.9 billion baht.

After the capital reduction, the company's registered capital would be around 1.3 billion baht, from the unusually high level of 13 billion baht currently.

"We're building our profits over the next three consecutive quarters or a year, so that we can seek approval from market regulators to resume trading of our shares, which have been suspended since 2000," he said.

After the company's shares resume trading, Mr Pongphan said, Apex would then be in a position to pay dividends to shareholders as well.

The five major shareholders of Apex are Mr Pongphan, who holds 23.54%, Tropical Holdings has 22.74%, Puangchan Sampawakoop 8.4%, Ekpong Na Ranong 8.02% and Thaiseri Property Co 4.96%.

Thailand Property Investments - A Positive View

I think making an investment in Thailand - whether in Phuket property or Koh Samui property is one of the smartest investments you can make. There are some reasons why Thailand is a desirable investment location:

* Thailand is the largest growth market in Asia. Some businesses choose Thailand as a regional base from which to keep their employees working all around Asia.

* Thailand has recently attracted significant foreign investment. It has become one of the Asian economic leaders and is one of the fastest-growing economies in the region.

* The completion of the Suvarnabhumi-Bangkok International Airport (SBIA) is expected to spur growth in commercial property markets in eastern Bangkok as well as make Thailand even more accessible by air.

* Thailand is one of the cheapest places to fly to in Asia.

* The country has strong business links with China and has an excellent infrastructure as well as world-class facilities in many resort towns.

* Property is much cheaper in Thailand than elsewhere and an increase in overseas interest in property purchase has helped to create an economic recovery in Thailand. Property investors who bought post 1999 have witnessed impressive capital growth, particularly in major cities.

* Rental potential is great, due to increased government spending luring growing numbers of tourists.

* No capital gains tax for private investors, and low ongoing taxes.

* Today, foreigners are regarded by the government as a big investment opportunity in Thailand and they are actively welcomed and encouraged to invest.

A positive view of investing in property in Thailand - Courtesy of Thai Property

Royal View Talay Jomtien - Condo Developer Does a Runner - Scam?

Royal View Talay is located on 2 rai of land (38 meters wide and 85 meters deep) just 50 meters from the Jomtien Beach Road on Na Jomtien Soi 2/1.

Breaking News

Just received this story about Royal View Talay on Jomtien Beach. The thing that strikes me is just 50 meters from the Jomtien Beach Road

Now could it possibly be that the developer has realized that his condos may NEVER get built. 50 meters from the beach 8 storeys, That is over the 14 meter legal limit. Oh dear!! looks like the pack of cards is starting to collapse big time.

ATTENTION! TO ALL ROYAL VIEW TALAY OWNERS (NA JOMTIEN)
All investors in this project, I would like to invite you to this community I have created myself (investor or RVT too) to unite our efforts in finding out the truth and getting our money back (unless you still trust the developer and the project).

Since last week Thursdays press release by the company, nobody has been able to make contact with the developer (RICHARD IAN SILVER) or the company. I would appreciate if this blog can serve the purpose of gathering all information anybody can have at this time. However, and to play safe, with the evidence I have at this time, we have to assume the worst.

This LOOKS LIKE AN OUTRIGHT SCAM! If anybody can prove me wrong?? Lets get together in this online community and decide a course of action for the benefit of us all now.

RVT InvestorJose

For a whole week, the developer RICHAR IAN SILVER has been missing. He is missing with all the money.

I suggest we organize ourselves to defend our interests more efficiently. If you know anybody who has invested in this project or is about to, please pass on this information.

Royal View Talay Investors Blog

From the Royal View Talay Website
Royal View Talay is located on 2 rai of land (38 meters wide and 85 meters deep) just 50 meters from the Jomtien Beach Road on Na Jomtien Soi 2/1.

The Ultimate Executive Seaside Condominium Project on Jomtien Beach, Thailand!
The Royal View Talay Co., Ltd. is pleased to announce that they will launch booking of condominium units in Royal View Talay Condominium (TWO) on September 1, 2007. Their amazing Royal View Talay Condominium (ONE) project at Na Jomtien Soi 2/1, Na Jomtien, Thailand is now over 50% sold. A total of 77 condominium units are being sold off the plan at attractive introductory prices starting at 34,000 Baht per square meter. Construction is scheduled to begin on August 27, 2007 with completion in January 2009. At the start of construction prices for units in build (ONE) will be increased by 10% for these quality condos. Hurry and book now before the price increase and enjoy a superior investment providing outstanding returns.

Royal View Talay is located on 2 rai of land (38 meters wide and 85 meters deep) just 50 meters from the Jomtien Beach Road on Na Jomtien Soi 2/1. This is in the municipality of Na Jomtien and Na Jomtien Soi 2/1 is located between Na Jomtien Soi 2 and Na Jomtien Soi 4. Both Na Jomtien Soi 2 and Na Jomtien Soi 4 are very special roads in that they are two of only five roads that connect Sukhumvit Road to Jomtien Beach Road. Na Jomtien Soi 2 is next to the Royal View Talay Condominium property (50 Meters to the north) and runs from the Jomtien Beach Road to Sukhumvit Road. This makes for very quick access to Pattaya Shopping, Dining and Entertainment.

Royal View Talay Condominium (ONE) is lowrise, high tech 8 story condominium.

Ocean's Edge Condominium Pattaya Scandinavian property development in Thailand

This article appeared recently in The Bangkok Post. As far as I know this company has only one condo project in Pattaya - Ocean's Edge Condominium Pattaya. There are however numerous other properties condos and villas being developed or in the planning stages by Scandinavian property development companies.

The article highlights two points:

1. The problems and inconsistancies with the rules regarding ownership of property by foreigners.

2. How "foreign style" developments can be attractive to foreign investors but as foreigners can only own 49% of a condo development who is going to buy the other units?

Source Bangkok Post
At SeaRidge in Hua Hin, condominiums starting at a roomy 112 square metres and costing four million baht are expected to draw plenty of interest, but the developers acknowledge that the villas on the site might be a tougher sell.

Attempts to amend the Foreign Business Act this year have led to foreign investment in the Thai real estate market plunging, says Lars Lang, a partner of Thai Estate Scandinavian Company, a niche developer.

Scandinavians in recent years have been active investors in Thai property, but lately the big players have become very hesitant about large-scale commitments, says Mr Lang. Individual Scandinavians are still buying but are shying away from anything costing more than seven to eight million baht.

Mr Lang himself said he recently failed to secure an investment from a Scandinavian who is now looking at the Vietnamese and Malaysian markets which are perceived to be more open and friendly to foreigners.

''So of course I hope [the government changes] something and I only look at it from the real estate point of view.''

The FBA amendment process is currently stalemated, following the adoption by the National Legislative Assembly on Aug 8 of a version that was even stricter than the military backed government's original draft. The NLA favours using management control as a criterion of ''foreign'' status, which would bring thousands more business activities under the scope of the law. Lang: Legal interpretations "confusing"

The two sides are now attempting to find some common ground. However, with the country moving into election mode, the chances of any meaningful legislation being passed for the rest of the year are slim. Whether the next government takes up FBA reform again is anyone's guess.

Even the current rules related to foreign investment are very confusing, according to Mr Lang, who says the same law is being interpreted differently in different areas such as Samui, Phuket, Hua Hin and Pattaya.

''That is very confusing. Of course, you have a government law but even the lawyers and the people around the area don't say the same thing.'' For this reason he hopes that any FBA amendments will be easy to understand.

He singles out leasehold terms as a prime example. ''I don't have a solution but if there is leasehold, just make it 90 years so that people don't have to get 30 years and then maybe an extra 30 years, and people have to set up a company.''

The issue is whether the government wants foreign money because there are other countries vying for it Malaysia and Vietnam being prime examples that Mr Lang warned could overtake Thailand in a decade. ''I have people from Malaysia who want me to start a company there.''

The Danish entrepreneur, who also sits on his country's chamber of commerce locally, says Scandinavian businesspeople in Thailand are talking about focusing more on Vietnam where things are cheap, access is easy and the people are friendly.

''In the business network people talk in different ways and I know a lot of businesspeople here who say that we should actually look another way.''

While this may be so, Thai Estate Scandinavian Company is already heavily involved in Thai resorts with as many as five projects in Hua Hin, Phuket, Samui and Pattaya on hand.

The project in Hua Hin is the SeaRidge condominium and villa development with the smallest unit being 112 square metres and costing four million baht. Villas are in the range of 4.5 million baht but Mr Lang admitted it is not easy to sell this type of property right now.

There are two projects in Phuket. Scandinavian Lagoon Resort, on Chalong beach, is ''a very special project'' with a Swedish doctor in residence and a school. The price of 66-square-metre condominium with 21-square-metre terrace starts at four million baht.

The company is also starting a large project with a Danish investor at Kamala Beach called Kamala Falls. The smallest condominium unit is a 67-square-metre one-bedroom pad with a
15-square-metre terrace costing 5.5 million baht.

In Samui, Thai Estate Scandinavian has tied up with a Danish and a Norwegian investor for a designer villa project. Each unit will be custom-designed and will have its own name. One 700- square-metre villa with aquarium walls has been named Nemo by the buyer.

In Pattaya the company is marketing the Ocean's Edge luxury condominium on Krating Bay.

The flow of Scandinavian property investment in Thailand started from Sweden and later spread to Denmark and Norway. Earlier people of these countries generally bought resort properties in Spain and France but over the past three to four years, aside from Thailand, they have snapped up real estate in Turkey and Bulgaria but investment to the former has now dropped off.

''If you look right now there are quite a lot of Scandinavians it's not going to stop, this is only the beginning,'' says Mr Lang.

However, he noted that Thai-developed projects might not fly with Scandinavian buyers given differences in cultures and tastes. ''The problem, if we can say so, is that Thai people cannot sell to Scandinavian people and Thai people don't understand the way Scandinavian people think we don't want big walls, we don't want a project that looks like a prison.''

To help Thai developers reach the lucrative Scandinavian market better, Mr Lang has been working as a consultant for Thai businesses. ''I've just been down to the north of Khao Lak and I've been in Krabi to meet some people. It's not being rude or anything but there is a difference between Thailand and Scandinavia and maybe we Scandinavians cannot buildwhat Thai people want.''

NINA SUEBSUKCHAROEN - Bangkok Post

Pattaya Property Market - Media Reports

Pattaya has an image problem. Conventional wisdom holds that the seaside city is a uniformly unsavory red-light destination, one that’s far from family-friendly and somewhat at odds with up-scale real estate development. And many people feel that the city’s reputation is well-deserved: It does, in fact, contain a proliferation of neon-lit go-go bars, ramshackle pubs, threadbare hotels, and tattoo parlors. And — most of all — Pattaya is home to swarms of middle-aged foreign men attracted to the city’s raucous nightlife and anything-goes attitude.

For the last several years, however, Thailand´s real estate industry has argued that Pattaya is changing for the better, that it’s becoming a more conventional beach-side resort town. But is this really the case? What is the current state of Pattaya’s real estate market? And what does the future have in store? Will a slew of new real estate developments help clean up Pattaya’s image?

“A more diverse expat community”“In the past, [Pattaya] had a reputation as being seedy, a sex tourism trap,” says Arthur Napolitano, managing director of property developer Kudu, which is currently working on The Lakes at Phoenix, an upcoming luxury condominium project on the outskirts of Pattaya. “But if you look at the area around the Dolphin round-about, you’ll see that things are changing. Amari spent something like Bt200-300 million on Mantra restaurant,” he says, referring to the sparkling new pan-Asian restaurant that has attracted positive media attention in a city not known for its glamorous eateries. “Beer bars have been demolished,” he says. “There’s a California Fitness coming, a big Central department store is coming. While Pattaya will never shed it’s image, it’s becoming gentrified.”

Henri Young, marketing director of developer Raimon Land, points to several new projects aimed at a more sophisticated clientelle. “The people behind J Avenue are launching a mixed-used development. And you can look at what Amari’s doing with Mantra,” he says. “More five-star international hotels are looking at Pattaya for sites.” And even though it’s no longer new, “the Sheraton having a property in Pattaya is attracting a different sort of clientelle…now there’s a more diverse ex-pat community,” he says.

“We’re seeing a lot more families,” says David Gray, director of East Coast Real Estate. A long-standing Pattaya property expert, Gray says that the city´s demographic may well be changing. “Now whole families are coming over, not just single men. The schools — like St. Andrews International School — are expanding rapidly. There are great options here.”

Pattaya is slowly cleaning up, says Clayton Wade, of Premier Homes, another well-established local figure. “And I wish it would rub off a lot more on the real estate industry,” he adds. “It’s getting sleazier by the second.”

Raimon Land´s Young notes that Pattaya’s emerging distinction as a sailing destination is adding value to the market. “The number of boats at Ocean Marina has increased,” he says. “People are actually mooring their boats there now. It’s added to the variety of recreational options. Golf, of course, is one of the prime attractions since there’s something like 20 golf courses in Pattaya,” he says. But sailing is a burgeoning attraction: “The wind compared to other parts of Thailand is more consistent in Pattaya,” he says, pointing to the success of Pattaya’s annual Top of the Gulf International Regatta, sponsored by Raimon Land, Jomtien’s Ocean Marina Yacht Club, and Thai Airways.

While developers might point to how Pattaya is changing, the resort´s bad-boy vibe is alive and well in the center of the city. On Pattaya Beach Road and along Walking Street — Pattaya’s central ocean-front avenues — the number of families to be seen out and about on a weeknight can be counted on one hand. (While couples with children may well choose to steer clear of this area, it still contains the bulk of Pattaya’s commercial activity.) And throughout downtown Pattaya, pharmacies display large advertisements for drugs such as Viagra, Levitra, and Cialis. Adjacent to one such pharmacy on South Pattaya Road is a small medical clinic with a sign in the window: “HIV Quick-Tests.”

And then there are the newspaper headlines. Bangkok and other cities in Thailand certainly have their fair share of unlawful activity. But if Pattaya’s local papers are any indication, there seems to be a concentration of illegal dealings and violence by the sea.

The Pattaya Today news headlines from the July 1-15 edition included, in the space of just two pages, the following headlines: “Uzbek prostitutes arrested en mass: Problem getting out of hand;” “German ex cop found shot;” “Suspected pedophile arrested;” “Faithful dog guards corpse;” “Woman drowns in paddy field well: But husband didn’t know her name;” “British restaurant owner dies at home;” and “Unhappy Norwegian hangs himself: Fell in love with go-go dancer.” Meanwhile, the Pattaya Mail from June 29 supplied these other curiosities on page 4: “Hungarian’s sex pills story doesn’t stand up;” and “Swedish businessman dies after eating som tam.”

“There will always be bumps in the market”Pattaya’s current real estate market has not been immune to the governmental instability in Bangkok. “It’s quite slow compared to last year,” says Khun Aliwassa Pathnadabutr, Managing Director of CB Richard Ellis Thailand. “One of the reasons is politics. It has happened in Bangkok, too. The overall perception from buyers and investors is that it’s not the time to buy,” she says. But the situation will begin improving, she feels, once new elections are announced.

Khun Sombat Chancharoensin, Managing Director of developer Wise Power Land, which is developing a popular condominium and villa project, says that although the market is a bit sluggish at the moment, “the demand is still there, and people are just waiting for new elections.”
Right now, says Young, “it’s the low season, so there’s not as much tourism traffic coming through town. That will pick up in October or November. We’re currently experiencing a seasonal change, as tourist traffic drives a lot of condo sales.”

“The real real estate market is fine, but the speculative market has crashed,” says Wade of Premier Homes. “But even though the boom might be over, the real existing real estate market is doing well and fine.” The Kingdom’s political instability, he says, “has almost killed the market.” But he remains upbeat: “Having said that, Thailand has always been resilient, and I can see the comeback to normality already well under way. I’m very confident that the new government can get the foreign interest in Thailand’s real estate back on track.”

Gray is also cautiously optimistic. “The property market is still here. Houses and land are still selling, but fewer people are jumping in, and some people need to get out. Prices are dropping. Some properties are undervalued. But things are still selling okay," he says. "What we need is clarification on the political situation. When people know what they can and can’t do, a lot more people will start buying…We need the new government to clarify things. Then hopefully people will commit to buying.

Thais are affected just as much as foreigners. They need guarantees, too.”
Stu Sutton, of local agency Jomtien Property, also believes that the market will survive. Things are looking up now, he says. “The dust is starting to settle after the coup. House sales still sluggish, but there’s more interest in condos.”

The political uncertainly is troubling however, and he says time will help eliminate some of the uneasiness. “Grey areas make people nervous,” he says. “It’s always a roller coaster ride in Thailand — we had SARS, bird flu, the tsunami, these issues with the government, the violence in the south. But the market is very resilient. There will always be bumps in the market — that’s Thailand.”

Projects on the horizonOf the new projects coming to Pattaya, perhaps the most prominent - at least in terms of architectural impact - is Ocean 1 Tower, a luxury condominium development which, at 367 meters in height, will be Thailand´s tallest building and one of the largest residential constructions in the world. The developer, Siam Best Enterprises, hopes to break ground soon at their Jomtien beach site, with completion slated for 2010.

Another prominent development is Raimon Land’s Northpoint, a large, high-end condominium project in the Wong-Amat area of Pattaya, north of Pattaya Bay. Raimon Land is credited with kick-starting interest in Pattaya with a previous project, Northshore, and their new follow-up development will consist of two buildings of 54 and 64 floors.

Kudu’s The Lakes at Phoenix is another notable upcoming project. Located on a 14-rai site near the Phoenix Golf and Country Club 15 kilometers outside of Pattaya, the development will comprise two low-rise, low-density buildings. Construction is expected to start in the third quarter of this year, with an anticipated completion date of 2009.

CB Richard Ellis’s The Sails has a particularly striking planned design: the luxurious beachfront condominium project will be shaped like two enormous sails. One tower will house condos, while the other will be home to a hotel. The Sails will be located on Jomtien beach; it’s due to be completed in mid-2008. Another Jomtien development, La Royale Beach, will offer both villas and condominiums.

Clayton Wade says to keep an eye on three of these new projects: Northpoint, Ocean 1 Tower, and The Lakes at Phoenix. “If they do well,” he says, “the market will do well.” Gray, meanwhile, says that the splashy new developments may grab headlines, but the smaller projects shouldn’t be overlooked.

“Some of the local projects are doing very well,” he says. “For example, A.D. Condo, in Wong Amat — probably 90 or 95% is sold already. And it’s probably 60% Thais, 40% foreigners. They offer payment schemes, and the average price is something like Bt25,000 per square meter.” He also points to La Royale, in Jomtien. “People are interested in the projects that have sold enough to guarantee completion,” he says. Ninety per cent of the other developments can’t say that.” Another project worth watching, he says, is Town and City Gardens. “They have two bedrooms for Bt4 million baht — these will sell, and they have been selling. Thais are buying.”
Young says he’s encouraged by Raimon Land’s progress in Pattaya. “We’re still making steady sales at Northpoint, and some encouraging re-sales,” he says. “One recently made a 20% gain on purchase price over a period of eight months.”

And he’s sanguine about the project’s prospects for success. “People like to see the evidence of construction,” he says. “A lot of people in Pattaya buy and want to move in as soon as possible. They’re coming for holidays and they have a sense of urgency about them, more than, say, in Phuket.”

The future“If the situation improves and confidence returns, Pattaya is a city where you have everything,” says Aliwassa of CB Richard Ellis. “There will be consistent demand. Pattaya may not be booming all the time, but there’ll be consistent demand for the market.”

“When I started, years ago, there were three or four agencies, and four or five villages,” says Gray. “It’s only been in the last two or three years that the new developers have started coming in. Northshore satisfied a lot of pent-up demand for something new." In the future, the market will continue to thrive. “The main thing is that the infrastructure is improving,” he says, noting that new malls and other attractions are in the works. “It’s a good place,” he says. “The market is there.”

Young notes that the market is shifting, and this will affect Pattaya´s future development. “What’s happening is that [the market] is being segmented a lot more. Before, all projects could be lumped together. But now the northern end of Pattaya has become a premium area, along with Jomtien,” he says, adding that Raimon Land is still actively seeking out new projects.
“I think there’s a lapse in the middle market,” he says. “There are a lot of lower-end projects and higher-end projects, but there’s a bit of opportunity between say Bt60,000-90,000 per square meter. People will start to realize, especially when the new expressway is completed, [Pattaya’s] appeal as a weekend destination across all market segments. Prices that seem relatively high compared to Bangkok will actually be good values.”

“[Pattaya] has started to improve,” says Khun Aliwassa. “Pattaya…can be a nice place for families, but it may take a bit more time for people to see this.”

The Pattaya paradox By Newley Purnell

The Property Market in Pattaya, Thailand

The local media is full of reports on the property market in Thailand and in particular the property market in Pattaya.

The reports vary from pessimism. Stories of a slow down or even decline in sales and new projects starting. Optimism mainly put out by companies starting new projects. Or stories of a lull in the market.

A comment from a local Pattaya real este agent, for me, tells the stark reality.

"Last month" (July 2007) - he says - "we had not a single customer"

"By single customer I don't mean buyer. We didn't have a single enquiry. We didn't have a single new enquirer walk through the door. We didn't have a single telephone enquiry"

My comments are superfluous

Ocean Property delays five projects - Ocean Portofino Condominium on Jomtien Beach to go ahead

Developer yields to weak economy and political uncertainty

Real-estate developer Ocean Property has delayed investment plans worth up to Bt5 billion involving five major projects, because of Thai-land's sluggish economy and continuing political uncertainty, says president Nusara Banyatpiyaphod.

The company had planned to launch all five new projects this year. Three of them are condominium projects on Rama III and Vibhavadi-Rangsit roads, another is a town-house development near Suvarnabhumi Airport, and the fifth is a hotel and resort on Phang Nga's Koh Yao Yai.

Nusara said although interest rates were expected to fall, demand for residential property continued to fall slowly, because most home-buyers were delaying their decisions to buy. Foreign investors are also delaying their purchases of residences in Thailand, because of the Bank of Thailand's 30-per-cent withholding measure on capital inflows.

"We must delay our investment plans until next year, when the political situation will be clearer after new elections," she said.

However, the company is continuing to develop four existing projects worth Bt3.7 billion and on which construction began last year. These are the five-star Asara Villa and Suites in Hua Hin, costing Bt900 million and whose soft opening is this week; Ocean Portofino Condominium on Jomtien Beach in Pattaya, worth Bt1.8 billion and which will be completed next year; O2 HIP Condominium on Withayu Road and worth Bt400 million; and a residential project called Ocean Villas in Hua Hin, worth Bt600 million.

Nusara said these four projects would generate up to Bt500 million in revenues for the company this year and as much as Bt2 billion next year. The company announced total revenues of Bt145 million last year: 50 per cent from rental fees, 25 per cent from services and 25 per cent from sales. To achieve the company's revenue targets for this year and next, Ocean Property has set aside a Bt17-million marketing budget. It will hold a road show for its projects in Hong Kong later this year.

"We'll focus on foreign investors who want to buy a second home and whose long-term investment should earn good income. In- vestment in the property sector is now generating a yield of 6-8 per cent a year," Nusara said.

The company's existing projects will focus on the high-end market, because this has both strong demand and purchasing power, which the middle to lower-end market lacks in the current economic environment, she said.

"If our road show succeeds, and foreign demand for our property projects grows higher than our target, we may be ready to launch our postponed projects before next year. However, that depends on market demand," she said.

Ocean Property is an affiliate of the Ocean Group, which is run by the Assakul family. The group also includes Ocean Life Insurance, Ocean Glass, Koh Samui's Bandara Resort and Spa, Saint Stephens International School and Ocean Marina Yacht Club.

Ocean Property operates two office buildings for rent: Ocean Tower 1, located opposite the Queen Sirikit National Convention Centre on Ratchadaphisek Road; and Ocean Tower 2 in Sukhumvit Soi 19.

By: Somluck Srimalee

Thailand Property Guide

Read More about Ocean Portofino Condominium

Beach Condominium: The Sails revitalises Pattaya market

Grande Asset to build twin towers to mark a new era for resort city

In marketing The Sails, Grande Asset Development chairman and CEO Pongphan Sampawakoop said the firm had made a point of differentiating the project from other older sites in Pattaya.

“We designed the condominium banner to read: ‘Splendour of Modern Pattaya’, to distinguish The Sails as symbolising the new Pattaya,” said Pongphan, a veteran developer. “Old Pattaya stirs images of a messy, dirty, crowded and noisy place, full of traffic jams.” Indeed, no one enjoys driving from Sukhumvit Road into the town with its narrow roads and unruly pickup buses.

The Sails is located at kilometre 156.5 on Sukhumvit Highway, which allows its residents to avoid all the congestion and stress in the older part of Pattaya.

“Here the beaches are not spoilt, the air is cleaner, and there’s no overcrowding on the beach,” he said.

Constructed on a massive 25-rai estate, the 43-floor condominium tower will house 151 freehold units.

It also shares the site with a five-star hotel. Grande Asset is looking for a global chain to run it. Among the chains vying for the site are Le Meridien and The Regent.

Before joining Grande Asset, Pongphan himself was an established developer of several properties. Among them was the first resort condominium in Pattaya, called Siam Penthouse 3, in Nak Lua during the early 80s.

Since then, the beach resort has boomed, but not always with positive outcomes as poor city planning and runaway tourism destroyed much of the resort’s charm and natural beauty.

Today, certain areas in Central and South Pattaya can be highly stressful and unhealthy due to traffic jams, pollution and noisy nightlife.

But in the outer Jomtien stretch near Ocean Marina, where The Sails is situated, life is still relatively unaffected by the mad rush on the part of greedy operators to milk the beach town dry.

To justify being a Grade A condominium, Grande Asset realised it had to provide a quality location that would inspire confidence in buyers. It wants to ensure that the site will be free from all the undesirable elements that wrecked Pattaya.

Its twin towers is set to be Pattaya’s new landmark on Sukhumvit Highway.

The company will offer a 5-per-cent discount on the selling price of the first 30 units. That comes to about Bt75,000 a square metre.

“The price will include built-in furniture, kitchens, air-conditioners, everything except free-standing furniture.”

Two key elements that will set The Sails apart from many projects are its ceiling height of three metres and big terrace space, said Pongphan.

The Sails will also have its own beach frontage of 100 metres. The plot on which the condominium tower stands will be divided from the overall 25-rai estate.

Construction is expected to begin soon, and the mock-up show units at the site will be ready for viewing next month.

Both the condominium and 210-room hotel are expected to be completed towards the end of 2007. The Sails is valued at about Bt1.8 billion, while the hotel is valued at more than Bt2 billion.

Itthi C Tan The Nation Published on November 07, 2005

La Royale Beach Condominium - One of the best

Although this article was first published on February 19, 2006 I think it is still a very relevent article about La Royale Beach and also other condo projects in Pattaya.

La Royale Beach Condominium will be the first new high rise residentialProject to open this year in Pattaya, said Wise Asset Group chairman Eric Laias the company celebrated its topping out ceremony on Monday.
By capping off the topmost floor at the 10-rai beachfront estate, valued atmore than Bt2 billion, we will now begin fitting the units, said Mr Lai, a veteran developer.
Bank Thai chairman Tawee Butsuntorn, who presided over the ceremony, said he had been observing the project closely form the start.He endorsed it as possessing quality designs and professionalmanagement. Mr Tawee was also former director at Siam Cement Group and former chairman of the Federation of Thai Industries.“From the strong foundations to the topmost floor, this is truly a first class job,” he said. “I can find no comparable project in Pattaya today that can match La Royale’s location, design and price.”
As the project is located at a secluded plot at the far end of Jomtien Beach, it is protected from noise and crowds. “Yet it is convenient as it is not too far away from the shops along Jomtien and the spot is easily accessible by road,” he said.
Mr Tawee was also pleased that Lai, who is an architect by training, has upgraded the project to be equal to a five-star hotel standard.
Mr Lai was a top director running Hong Kong & Shanghai Hotel’s property division. The group operates the global Peninsula chain and Lai’s work for them include the designing of the Kowloon Hotel, Peak Tower and Repulse bay apartments.
Mr Lai said his buildings carry his trademarks as they are distinct in appearance, practical to use and over time, create value for investors.”
Wise Asset’s managing director Sombat Chancharoensin said La Royale “will be the first of the many mega project to open later this year after nearly a decade.”
Project such as Northpoint, The Sails, Portofino and Ocean 1 are scheduled to be completed in two to three years or more, said Mr Sombat.
Last year, Raimon Land fitted out an old building and renamed it Northshore on Beach Road Soi 5 but La Royale, is the first to be built from scratch, he added.
La Royale has 150 luxury units with prices for furnished freehold apartments starting from about Bt7 million.
The development is constructed by K-Tech Construction and is financially supported by TMB Bank.
The property comprises 149 units of 2-3 bedroom apartments, 3 units of penthouses, 32 units of garden exclusive suites, and 6 villas.
All condominium units have clear views of sea while offering residents total privacy. Sales of La Royale Beach Condominium have reached 70 per cent. La Royale is the first of Wise Asset’s endeavours in Pattaya and the firm is working on more projects that will be announce later in the year, Mr Lai said.http://www.nationmultimedia.com/property/newsarticles.php

High end developers reshaping Pattaya market

With a new international airport opening just 40 minutes away, one could say that the sky is the limit for the sheer size and scale of future Pattaya property developments, and the international agents that wheel and deal them.
Spotlighted in countless local and international publications, the potential for property investment on the eastern seaboard is attracting an increasing amount of attention. With the bursting of Thailand’s property bubble in 1997, the market was pretty cool for several years thereafter, but the past half-decade has seen some tremendous growth potential.
“International agents are very interested in this area,” said Roland Steiner of Siam Royal View Projects. “The problem is that most projects are too small for an international agent to get involved with. They have a long lead time for sales and typically, good projects are sold out before those agents have had a chance to respond.” Mr. Steiner went on to say that this trend was telling: the internet remains the primary tool for overseas agents to research potential investments, but even the bang of instant knowledge at their fingertips doesn’t seem to let them in on the game fast enough to scoop the locals.
Henri Young from Raimon Land agrees that international agents are starting to take a greater interest in the area. “Overseas agents are only just starting to pick up on this market,” he says. “Previously, they channelled their efforts towards Phuket, but the positive press, scale of projects and potential for growth has lured them into the market. This should help educate and attract more international prospects.”
That being said, with the economy emerging from a long slumber, developments in the region will most definitely start to grow in size, as will the time and money spent by foreign agents in ensuring that they’re able to stake their claim. David Gray of East Coast Real Estate echoes the sentiment.
“The area is starting to attract a lot of attention, especially from big agents like CBRE, Jones Lang LaSalle and others,” he explained. “Many of them are doing business in this area but don’t yet have offices here, which will change over the next little while.”
Walking around the town, it’s easy to see that there’s a large contingent of companies ready to dive into the lucrative, expanding market. Sales agents and property companies are nearly as easy to spot as 7-11’s. It’s clearly a market rife with companies waiting for the coming influx of cash.
It was to be expected – after all, for every success story in Thailand, be it movies or fashion or restaurants, there are five others that crowd onto the bandwagon, often without meeting the minimum requirements that others spend so much time attaining.
“When we started here ten years ago, there were three main property companies, ours included,” says Gray. “But now, there are over 120 of them, all jockeying for slimmer and slimmer pieces of the pie.”
Engaging in casual, chew-the-fat type of conversation with people involved in the area’s industry leads one to believe that of this large number of property offices, few are capable of navigating the treacherous waters of the property market. Probably about 90 percent of the companies in the area are seen as ‘cowboy’ entities, there to get as much as they can, as quickly as they can. In this regard, the ingress of international ‘big boys’ setting up shops in town will probably be looked upon as a blessing. In response to this question, Gray says: “In order to compete with these guys, you need professional service that offers the right properties, the right contracts, the right prices and the right commissions. I think that within the next few years, many of these smaller, less professional operations will be gone. It will give the industry the professional edge that it needs to maintain in order to thrive.”
Indeed, ten years ago when Gray set up East Coast Properties, the market for lavish, expensive condos simply didn’t exist. Pattaya was a boom town, but the property influx that was to define it for the new century was years away.
“A new breed of developers has appeared with the emergence of the high-end Pattaya market,” said Steiner. “High end constitutes properties that cost 10 million Baht or more. This market segment did not exist 5 years ago.”
One of the clearest examples of the new trend in high-end living is La Royale Beach, a new project being managed by Wise Power Group. The 34-story tower on the Jomtien side of town boasts its own private beach, jogging track, underground parking and a host of other tweaks and amenities that make it a first class property. And the view is excellent.
“I’ve worked with many five and six star hotels and top-tier condos in Hong Kong, and I have a lot of experience with what works, what doesn’t work and what tenants expect,” says Wise Power Group Chairman Eric Lai. “I made a very conscious effort to take what I’ve learned and apply it to La Royale to make sure that we develop nothing less than a first-class environment.”
Gray, whose East Coast Real Estate is the sole vendor for La Royale Beach, says that it’s his single biggest project right now. “We’ve sold over 75 percent of the units there, which represents over 1 billion baht for that project alone.”
This is only the latest of what will surely become a trend in first class properties catering to those willing to dig deep to buy that kind of lifestyle – but will sales levels eventually come back down to less lofty heights?
In Steiner’s opinion, things look like they’ll stay peachy into the near future. “The condo market anywhere is very cyclical due to oversupply situations, which makes it more competitive and risky,” he said. “Smaller houses – in the 2 to 6 million baht range – are being stamped out 100 to 300 units at a time, so oversupply is definitely possible in that market. But many high-end projects are quite small – 5 to 30 units – which are bought and then built, so it’s hard to have an oversupply in this situation.”
But Pattaya isn’t a self-supporting economy, sequestered from the rest of Thailand; the two are linked. Keep in mind that over 80 percent of housing units in this area are bought by Thai buyers, who are a product of the economy. Growth here is a direct mirror of economic growth in general, and we all know how quickly that can change.
Driving down the first beach road in Jomtien it’s strange to think that in several years, the entire area will be likely be spiked with high-rise condos offering views that would make Donald Trump pine for a spot on the waiting list.
“I think that Jomtien will be the next ‘hotspot’ for the region, if they do it right,” answered Gray when asked where developments will start springing up next. “If they go in with the right planning and infrastructure, you’ll see big developments there for years to come. It’s got 7 km of beach and miles upon miles of land that’s just empty. There is huge potential.” Grey went on to suggest other prime areas around town include Pratumnak hill, which is mostly smaller, residential developments, and Mabrachan Lake, as it has easy access to motorways amid a tranquil setting. He explained that these two areas simply don’t have room to support massive, sky-scraping towers of steel and glass - and that may be a good thing.
In spite of everyone’s love for luxury, there’s still only so much a person can use. Gray, despite representing many of these large pieces of property, sees a time when buyers will tire of them and look to invest in smaller, cosier places to live. “I think that’s what we’ll start to see more of eventually, because many of these huge spaces are just too big,” he said. “You don’t need an extra 20sqm of space for a sofa.”
This is a fair assumption to make. Although several massive projects have already been planned for Jomtien, one can imagine that land prices out this way are still reasonable enough to warrant smaller, more personal spaces that still provide a return on investment. An example of this on Pattaya beach is the View Talay Condominium project, a 26-story condo offering mainly studio and one bedroom units that many think will be quite successful. Steiner seems to agree, echoing Gray’s comments when he says that the market in Pattaya is being driven by a growing Thai middle class, taking up most of the properties in the 2 to 6 million baht range, and they’re growing fast.
Mr. Young and Raimon Land has bet big that the Wong-amat beachfront will be a desirable location that will draw investors to North Pattaya for their Northpoint development. “Wong-amat offers a more peaceful alternative to Central Pattaya and Jomtien with a distinguished heritage, relative proximity to Bangkok and superior beachfront,” he said. He also adds that the Raimon Land research shows that demand will stay high for some time to come.
“Our pre-sales interest in Northpoint indicates that several qualified buyers are scouting the market,” he said. “Also, geographically speaking, there are still some good sites in and around Pattaya and while niche and price driven locations will continue to emerge, the main draw card will still be the city itself.”
The biggest change that the region has ever seen will arrive shortly, with the opening of the Suvarnabhumi International Airport. Depending on whom you believe, the airport will either open this June, this July or this December, but no matter which month it is, it will undoubtedly have a tremendous effect on the area, transforming it nearly overnight. Mr. Young recently toured the facility and came away impressed. “Our tour revealed a tremendous facility with a credible ‘wow’ factor. We’re looking forward to its opening.”
But it’s not just Pattaya that will profit from the new airport. The surrounding areas will get an injection of cash and opportunity as well. Steiner says that with the new airport, buyers will be ready to venture down not just as far as Rayong, but Maptaput and Laemchabang ports.
He also sees Koh Chang benefiting from the new air link and is hoping to take advantage of the island’s proximity to the airport with Siam Royal View’s development there (as well as the one in Pattaya). “It’s conceivable that you could be in downtown Pattaya faster than you could be in downtown Bangkok. Just compare the lifestyles,” he says with the authority of someone who’s maybe had a bit too much of big cities.
Gray agrees that things will change drastically once the planes start landing. “You have industrial ports, deep sea zones, tourism and schools. I think a lot of companies will relocate from Bangkok to here. With the planned high-speed rail link it’ll make the whole commute a pretty painless experience.”
“It will be faster to get to Koh Chang from the new airport than it will be to get to Patong beach from Phuket airport. You can also get flights to Trat from Bangkok 3 times a day, and they’ve just announced a Samui-Trat flight, with Phuket to follow,” explained Steiner. “The effects of the airport will be explosive.”
But when people see big potential, they tend to have big ideas, and developments don’t come much bigger than the 91 storey Majestic Tower, a new skyscraper that will have its official launch sometime next month. There is surprisingly little information to find online, but queries to the listed developer (Siam Best Enterprises) end with an email that says: “According to our architects this will be the tallest residential building in the world and we spent considerable time engaging world renowned experts in the field of property construction. It has been in the planning for almost a year and we anticipate the official launch will be within the next six weeks.” Undoubtedly, the building will change the Jomtien landscape (and probably Koh Chang’s too – you might be able to see the behemoth from the faraway island), setting the bar pretty high for others to follow.
Thankfully, the effects of the ’97 crash have been studied and lessons have been learned. “It’s important for potential investors to remember that the crash of ’97 was not actually a real estate crash, but a currency speculation crash,” said Steiner. “There was exorbitant over lending by banks at the time, but if you try to get a loan now, you will feel the mechanisms that prevent serious overheating.”
Gray, who came to Thailand shortly before the market fell, agrees with this statement. “The banks used to give money to anyone – he’s your brother or he’s your friend, have some money. But they’re much more careful now and it’s much more stable.”
Nevertheless, skittish nerves about all the activity on the eastern seaboard are hidden not too far under the surface. There are a few projects around that trigger raised eyebrows when their names cross the table. For obvious reasons, people don’t want to go into too much detail, but the best advice that anyone can take is to research where a project’s financing is coming from and how it’s structured. There have been projects in the past where the money has flowed in, the construction has started and then… poof. A half-finished building and a few unscrupulous individuals who flee the country with suitcases full of cash. Being forewarned is being forearmed. Having a real estate lawyer familiar with Thai law go over things probably wouldn’t hurt.
But, with prices rising an average of 30 to 40 percent each year for the past several years – one of the highest rates in South East Asia – the future is definitely looking bright for property investments. Many people are taking advantage of the market by investing in short term properties – getting in and out with a small but easy return. “One guy I know bought a property for 9 million baht, and sold it for 12.5 a few months later,” said Gray. “That’s not too bad.”

Jomtien Complex - My Choice - My Home

Well finally made the move. After ten years hard work living in the dusty realm of Sukhumvit I made it down to Pattaya. First came here twenty years ago and dreamed of making a home and life 'by the beach'Bangkok was the place to be for work and money. Now courtesy of the internet I can do most of my work from home.

I spent many trips from Bangkok looking for the best condo I could find for a reasonable price.
I chose Jomtien Complex. Pool, Gym, close for transportation into Pattaya. Most of all I chose it for silence. After living in Bangkok I realized the joy of actually hearing the waves lapping on the beach. 200 meters from the beach. The condo I chose is on the 5th floor with the pool and gym just underneath on the next floor.

Buying Condominiums in Pattaya - Wise words of caution

Now that the government is tightening up the Foreign Business Act to prevent foreigners setting up Thai nominee companies to buy property, condominiums are even more popular. The law is aimed at discouraging foreign developers buying large plots to build housing estates and condominiums. Even though the new law has not gone into effect yet, the announcement about the change was enough to stop almost all home sales. The resulting slump in the housing market has already hit major Thai developers. They are pulling back and aiming at the low to medium market instead.
However, condominium developers are seeing a rise in their sales. People are rushing in to buy up whatever they can. New condos are selling off-plan before the ink is even dry. Construction has already started on several new condo projects in Pattaya and Bangkok, and more are getting ready to start.
A word of caution here, though: Two clients this month have told me about deals that went bad. One was for a housing project in Samui Island, and the other was for a condominium project in Pattaya. Both were lucky enough to get their deposit back when the projects fell through. But I know others have not been so lucky. So, if you are looking at the market now to invest in property, make sure you check out the developer's credentials thoroughly before putting down a deposit on a new project. Make sure the developer has solid financial backing and that he owns the land already. Look for those who have a track record of finished projects.
Some so-called developers are drawing up plans for their projects, putting a retainer on a plot of land, and then pre-selling enough units to finance the land purchase and their project. Buying from developers like this is risky. Sure, it has worked plenty of times in the past, but how can you be sure it will work when you put your money down?Some Wise words from Marc Holt read the rest of the article Holt Reality

Pattaya Jomtien Past Present and Future

So I finally made the move. 12 years in Bangkok more than enough to make a poor man humble. Back to Pattaya. Back to the place I spent my first holiday in Thailand way back in 1989. Back to Jomtien Beach the place I used to escape from the noise and craziness of the nightlife of Pattaya.
Back to the place I called home in 1991, where I lived, loved and worked for almost a year before I returned home to The UK to sort out my life and get my act together.

My oh my how this place has changed, is changing, will change in the not too distant future.