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
Saturday, March 17, 2007
Saturday, March 10, 2007
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
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
Wednesday, March 7, 2007
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.”
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.”
Monday, March 5, 2007
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.
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.
Saturday, March 3, 2007
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
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.
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.
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