Beach Spots Attract Investors

Phuket, Pattaya, Hua Hin show rise in demand despite overall downturn. This year, the property market will likely grow 3-5 per cent, says Real Estate Information Centre general director Samma Kitsin. He said although the property sector in the greater Bangkok area had declined, the overall market was supported by growth in tourist destinations.

Samma said the property market showed a slight drop in the first half of the year following a rise in construction costs and decline in consumers’ purchasing power. However, demand for residential property in Phuket, Pattaya and Hua Hin has shown strong growth.

He also said home-buyers were likely to make their buying decisions before the current tax-incentive package expires next March 30. “At present, local and foreign buyers receive a tax benefit. Due to this, the number of residential-property buyers, especially foreign investors wanting to buy retirement homes in beach destinations, is expected to rise,” Samma said.

A survey conducted by The Nation showed that a number of residential projects in Phuket, Pattaya, and Hua Hin had sold out even at prices of up to Bt10 million a unit. Supharat Group managing director Sumeth Sukahanpatharam, who launched the Pran-a-Luxe luxury-villa project in Hua Hin, said demand for retirement and second homes in that town from both local and foreign buyers had shown strong growth. “Our project, worth Bt660 million, has 47 villas starting at Bt10.5 million a unit. We’ve already sold nearly half of the project’s value,” he said.

Research conducted by CB Richard Ellis shows demand for a luxury residence at beach destinations like Pattaya, Phuket and Hua Hin has risen.

In Pattaya, a number of recently launched projects fall into this category, including The Cove, The Spinnaker and Northpoint projects. About 30 per cent of units in low-rise condominium projects have been sold. Among low-rise projects, the highest sales rates have been seen in units priced at or under Bt5 million inside Pattaya town.

Overall sales for grade-A condominium projects in Pattaya stood at just under 40 per cent for the second quarter. Combined existing and future supply is roughly 3,500 units, but only half of these have been launched since the beginning of last year - a factor in the overall low sales rate. The highest sales rates have been achieved at cheaper projects priced at or under Bt5 million.

In Phuket, demand for residential property has grown, especially in the high-end market, ever since the government announced plans to upgrade Phuket Airport by 2010. Infrastructure improvements have also helped fuel demand for property in Phuket, which has three existing marinas and another three slated to be completed soon.

Written by Somluck Srimalee
Published on The Nation - nationmultimedia.com