Pattaya City Condominium market rePort | H1 2012

H1 2012 | condominium

Pattaya City Condominium market rePort

THAIlANd

Pattaya City Condominium Market

HIgHlIgHTS
A similar number of newly launched units were introduced in the first half of this year, as compared with the second half of 2011 Just 250 units were completed and transferred during H1 2012. this is primarily due to a lower introduction of project launches during the worst of the economic crisis of 2008-2010 mARKET INdICAToRS
H2 2011 / H1 2012 Supply lAuNCHES pRICES TAKE-up

a large number of Pattaya and Bangkok based developers continue to make a strong vote of confidence for the Pattaya market The average take-up rate for the first six months of 2012 increased by more than 4.6% on 2011 the new Jomtien Second road will remain the most densely developed area throughout the municipality during the first half of 2012, with many more projects scheduled for the second half.

NEw lAuNCHES powER pATTAyA mARKET

NEwly lAuNCHEd IN H1 2012

Newly launched units in the first half of 2012 were similar to the total launched during the second half of last year. this was due mainly to a large number of smaller projects being introduced with a selling price of less than 3 million baht, particularly within the Jomtien area.

Source : Colliers international thailand research

www.colliers.co.th

Pattaya city condominium rePort market | H1 2012

Supply
HISToRICAl Supply

CumulATIvE Supply IN BANgKoK

Source : department of Land and Colliers international thailand

At the end of H1 2012, the total supply of condominium units amounts to market. From one extreme to the other, we expect to see a whopping approximately 46,350. During H1 2012 a rather low figure of just 250 5,900 units completed during the second half of the year according to units were completed and transferred. developers reports. this is primarily due to the massive decline in condo launches following the wake of the worldwide economic crisis, when many developers decided to put their projects on hold off until there was an upturn in the

COLLIERS INTERNATIONAL | P. 2

Pattaya city condominium rePort market | H1 2012

Supply By loCATIoN, H1 2012

CumulATIvE Supply IN BANgKoK

Source : Colliers international thailand research

Pattaya proved to be the most popular zone for the condominium market in the years prior to 2000; however from 2001 onwards the Jomtien area has displayed continual growth due to the abundance of remaining beachfront and secondary development sites, Pattaya on the contrary now faces a scarcity of development sites and those that are available are becoming prohibitively expensive. During 2005 the Pattaya City administration initiated improvements to be made along thappraya road and introduced a new Jomtien Second Road extension. The road was designed to alleviate traffic congestion from beach road and now has many sois linking both roads together.

With the introduction of this new road which is still an ongoing project, weve witnessed the entire area opening up and become available for large scale resort style mass development, mostly appealing to the lower end of the market. The condominium supply expected to be completed between 2012 and 2015 in the Jomtien area is expected to surpass 14,000 mid to low end units.

CoNdomINIum Supply By loCATIoN, H1 2012

The largest condominium supply is in Jomtien, representing about 41% of the total followed by Pattaya with approximately 31%. Condominium projects in Pattaya are predominantly low rise in nature and the average number of units per project is approximately 140, which is similar to projects found in the Wongamat and Pratumnak areas. the figure for Jomtien was around 360 units as until recently many of the projects have been high rise. as land costs are generally less along the Jomtien Second Road it has enabled developers to launch low cost, low rise resort style projects often numbering over 1,000 units surrounding a large lagoon swimming pool and often based on a theme. The pattern of overall real estate development is different for Jomtien and Pattaya, as Pattaya contains the vast majority of both hotels and commercial developments, which leaves very limited land supplies for large scale condominiums. on the other hand Jomtien was largely spared this kind of development during the 80s and 90s and as a result sizable tracts of land still remain available for larger scale projects.

Source : Colliers international thailand research

COLLIERS INTERNATIONAL | P. 3

Pattaya city condominium rePort market | H1 2012 fuTuRE Supply

CumulATIvE fuTuRE Supply By yEAR ANd loCATIoN

Source : Colliers international thailand research Remark : Developers expected completion dates

According to claims by developers almost 5,900 units are scheduled to years 2013-2015 Jomtien will continue to be the main player in the be completed and transferred during the second half of 2012, which Pattaya condominium market, particularly in the middle to low end represents an increase of more that 12% on total supply. Throughout the sectors.
NEwly lAuNCHEd uNITS By loCATIoN ANd HAlf yEAR

Source : Colliers international thailand research

new launches for H1 2012 were very similar to the second half of last year, with Jomtien leading the way followed by Pattaya city. Three new projects were launched in Jomtien comprising more than 1,000 units in each project. the majority of condominium projects launched in the last 12 months have focused on mid to low end buyers, though there are some exceptions

concentrating on the upper end of the market, also reporting strong sales figures. Mainstream buyers both foreign and Thai are mostly looking for an affordable holiday home, not far from the beach, with good facilities and trusted management from a recognized developer with good track record.

COLLIERS INTERNATIONAL | P. 4

Pattaya city condominium rePort market | H1 2012 CoNdomINIum pRojECTS wITH HoTEl mANAgEmENT
the trend for condominiums with brand named hotel management or a hotel component continues strongly in Pattaya and there are several more due to be launched this coming high season. the addition of an international or quality domestic brand adds kudos to the development, as well as significant improvements to services and facilities to unit owners and to those who will choose to rent. the upshot is that capital values and strong yields are likely to increase with the addition of a hotel element.
No. 1 2 3 4 5 6 pRojECT NAmE movenpick White Sand Beach Pattaya amari residences Pattaya Centara avenue residence & Suites Pattaya Waterfront Suites & residences Centara Grand residences Pattaya modus Beachfront Condominium & al Fresco resort Hotel BRANd movenpick amari Centara Park Plaza Centara al Fresco resort loCATIoN na Jomtien Pratumnak Pattaya Pratumnak na Jomtien Wongamat

Source : Colliers international thailand research

dEmANd
TAKE-up RATE of lAuNCHEd pRojECTS SINCE 2010

CumulATIvE Supply IN BANgKoK

Source : Colliers international thailand research

the average take-up rate for Pratumnak increased by an average of approximately 12% from the second half of 2011, highest of all locations in Pattaya city market. The take-up rate of Wongamat, Jomtien & Na Jomtien increased by an average of approximately 8.8% from the second half of 2011 and the remaining location, Pattaya recorded a slight decrease. During the first half of 2012 three new large scale projects were launched in the Jomtien area, comprising more than 1,000 units per project, which

were warmly welcomed by investors and the take-up rate rose in Jomtien. on the contrary Pattaya area witnessed a slight decrease in H2 2011 with no new launches during this period, however over 2,000 units were introduced during H1 2012, yet the majority of buyers preferred locations away from the city, which affected the average take-up rate.

COLLIERS INTERNATIONAL | P. 5

Pattaya city condominium rePort market | H1 2012 foREIgN owNERSHIp / domESTIC dEmANd
in contrast to the last few years where foreign buyers were the mainstay of the Pattaya and Jomtien property scene, were seeing a remarkable entry into all segments of the market from thai buyers. For many years the majority of the foreign owned local development companies struggled to sell their 51% Thai requirement, however there is now a shift in as much as many thai developers coming to Pattaya sell well to the thai market and do not come close to filling their foreign ownership quota. the thai market is particularly brand conscious and tends to follow well known names such as LPN, Q House, Major Developments and other big names such as Sansiri and Supalai, who we believe will soon enter the marketplace. other lesser known local developers have discovered the attraction of adding a brand name hotel component to their project which adds prestige, desirability and in turn sales to both Thais and foreigners are encouraging. than other nations. Europeans, British and American buyers have not shown such demand as in previous years, however buyers from Australia have also been notable throughout early 2012 due to preferable exchange rates. emerging markets such as india and China have now started to put their toes in the water. We believe that these countries could quite possibly become the superpowers of the future when it comes to buying property in Pattaya.

during the early part of the year we witnessed a wide selection of condominiums enter the market and were astounded by the massive success of many and the incredible take up rates in most areas. Certain projects have been almost sold out as soon as they were launched, others took several months to reach 50% to 70% sold out, however the overall results are very encouraging for the market in general and there The Russian market continued its resilience during the first half of the seems to be no stopping the immense popularity that Pattaya holds for year and it appears that theyre less affected by global economic problems both investors and end users.

pRICE
AvERAgE SEllINg pRICE pER Sq m By loCATIoN, H1 2012

Source : Colliers international thailand research

the average selling price in Wongamat remains the highest in all of Pattaya city. there were only two new projects launched in this area during the first half of 2012, so the area appears to be retaining its exclusivity. The average price in Pattaya, Jomtien and Na Jomtien in contrast decreased slightly, in part due to the increased amount of newly launched projects aimed at the mid to lower end of the market.

COLLIERS INTERNATIONAL | P. 6

Pattaya city condominium rePort market | H1 2012 BEACH fRoNTAgE ANd HEIgHT of CoNdomINIumS AffECT oN pRICE H1 2012
AvERAgE SEllINg pRICE (THB / Sq m.) BEACHfRoNT 109,900 oTHER AREA 43,500 HIgH RISE (> 8 storey) 65,650 56,000 58,950 67,462 104,700 42,600 41,500 58,950 69,550 low RISE (< 8 storey) 62,500 43,200 51,650 40,860 40,856

loCATIoN Wongamat Pattaya Pratumnak Jomtien na Jomtien

AvERAgE SEllINg pRICE (THB / Sq m.) 64,793 54,000 55,270 46,803 51,500

Source : Colliers international thailand research

Beach frontage is the key driver in attracting higher prices for luxury having a sea view from all units also attracts a premium. However, condominiums. Prices can rise by over 100% when a project is located certain low rise projects with an emphasis on facilities such as a large by the beach, especially in Wongamat and Na Jomtien areas. themed lagoon swimming pool or amenities youd expect to find in a resort will often command higher pricing. the average selling price of a high rise project is higher than that of a low rise, due to the increased construction costs and the privilege of

COLLIERS INTERNATIONAL | P. 7

Pattaya city condominium rePort market | H1 2012 ouTlooK

The condominium market in Pattaya has remained robust over the last 6 months following the solid performance of 2011. Jomtien is the most popular area for many foreign and thai buyers looking to buy a second home in close proximity to the beach at an affordable price. Most of the projects launched during the first six months of 2012 and in the coming months are focusing on the mid to low end of the market. Jomtien in particular runs the risk of oversupply to investors looking for strong yields and high capital appreciation. as a lifestyle choice and as an end user Jomtien can offer some very attractive properties at affordable prices, particularly long Jomtien Second Road. Foreigners and Thais are almost equal in numbers as buyers, which assists developers in selling out projects 100% based on quotas. However, with the on-going EU debt crisis issues it will have a negative impact on visitors coming from countries within the euro zone. emphasis should be placed on developers selling to the domestic market with an increasing disposable income and a new found fondness of Pattaya following the flooding in many areas during late last year. the second half of 2012 will bring with it high season and many new project launches in Pattaya, we expect the take up rate to increase significantly higher than in H1.

COLLIERS INTERNATIONAL | P. 8

Pattaya city condominium rePort market | H1 2012

AppENdIX

COLLIERS INTERNATIONAL | P. 9

Pattaya city condominium rePort market | H1 2012 ZoNINg

COLLIERS INTERNATIONAL | P. 10

Pattaya city condominium rePort market | H1 2012

Pattaya is a city located on the east coast of the Gulf of thailand about 165 km southeast of Bangkok. It is within, but not under the jurisdiction of amphoe Bang Lamung in the province of Chonburi. the city of Pattaya is a self-governing municipality that covers the whole tambon of nong Prue, Na Klua, parts of Huai Yai and Nong Pla Lai. It is located within the heavily industrialized Eastern Seaboard zone, along with Sri Racha, Laem Chabang and Chon Buri. It has a population of 556,916 and covers an area of 49.37 Sq km. Pattaya city occupies most of the coastline of Banglamung (one of the 11 districts that comprise Chonburi Province). it is divided into a larger northern section that spans the areas to the east of naklua beach (the northernmost beach) and Pattaya beach (the main beach), plus the Buddha Hill headland (immediately south of Pattaya beach), and a smaller southern section covering the area to the east of Jomtien beach, which lies directly south of Buddha Hill. the report covers the Pattaya city area as well as na Jomtien and a distinction is made between Pattaya city and Pattaya bay which constitutes part of the overall area under consideration. Pattaya city can be divided into five zones for the purposes of this report. Below is a summary of each zone.

5. NA jomTIEN
na Jomtien beach is south of Jomtien and partially does not have a beachfront road and is less developed as a result. the main road connection is Sukhumvit road, which is located between 5001,000 meters from the beach, this area extends to Ban Amphoe beach in Sattahip district. Note: The report covers residential areas located on or west of Sukhumvit road.

1. woNg AmAT
this is the area to the north of Pattaya nua and is considered a more peaceful, up-market location and a relatively new setting for condominium development. Wong Amat beach is considered the finest in Pattaya and boasts several of the higher end luxury hotels and condominiums. Limited beachfront land should ensure that prices increase in tandem with the popularity of this area from both thais and foreigners.

2. pATTAyA
this area is considered as the city centre. the section of beach from Central road south to the harbour runs adjacent the core of Pattayas abundant nightlife area. Pattaya nua and klang are the areas favoured by Asian visitors, especially Chinese & Korean. A large number of expats employees also prefer this location due to easy access of the main highways. The area of South Pattaya is popular among Middle Eastern, South asian and russian visitors. the area along Soi 15 Second road is enjoying resurgence in popularity amongst buyers.

3. pRATumNAK
Located to the south of Pattaya and bordering Jomtien, Pratumnak is considered a quiet residential area with a mix of luxury villas, high and low rise condominiums. Pratumnak area features two beaches, Cosy Beach and Haad u thong which are popular with russian and Scandinavian visitors. Restrictions on condo development, limited availability of land and desirability of the area should ensure that property prices in Pratumnak will steadily rise.

4. jomTIEN

Jomtien beach is about 1 km south of Pratumnak Hill. the locale is home to many high-rise condominiums, beach front hotels, shops and restaurants. The area at the beginning of Jomtien is considered busier, while the area located at the end of this beach known as na Jomtien is considered to be much more peaceful and less congested.

COLLIERS INTERNATIONAL | P. 11

Pattaya city condominium rePort market | H1 2012 CollIERS INTERNATIoNAl THAIlANd mANAgEmENT TEAm
Pattaya oFFiCe mark Bowling | Senior Sales manager Supannee Starojitski | Senior Business development Manager / Office Manager ProJeCt SaLeS & marketinG monchai orawongpaisan | associate director reSidentiaL SaLeS & LeaSinG napaswan Chotephard | manager reSearCH tony Picon | associate director Surachet kongcheep | Senior manager oFFiCe & induStriaL SerViCeS narumon rodsiravoraphat | associate director retaiL SerViCeS asharawan Wachananont | associate director adViSory SerViCeS | HoSPitaLity Jean marc Garret | director adViSory SerViCeS napatr tienchutima | associate director reaL eState manaGement SerViCeS Prasert Saiphrawan | Senior manager inVeStment SerViCeS nukarn Suwatikul | associate director Wasan rattanakijjanukul | Senior manager VaLuation & adViSory SerViCeS Phachsanun Phormthananunta | director Wanida Suksuwan | associate director Hua Hin oFFiCe Sunchai kooakachai | Senior manager
RESEARCHER: thailand Surachet kongcheep Senior manager | research EmAIl surachet.kongcheep@colliers.com

522 offices in 62 countries on 6 continents

a leader in real estate consultancy worldwide 2nd most recognized commercial real estate brand globally 2nd largest property manager 1.25 billion square feet under management Over 12,300 professionals
coLLierS internationaL tHaiLand: Bangkok Office 17/F Ploenchit Center, 2 Sukhumvit Road, Klongtoey, Bangkok 10110 thailand TEl +662 656 7000 fAX +662 656 7111 EmAIl info.th@colliers.com Pattaya Office 519/4-5, Pattaya Second Road (Opposite Central Festival Pattaya Beach), Nongprue, Banglamung, Chonburi 20150 TEl +6638 427 771 fAX +6638 427 772 EmAIl info.pattaya@colliers.com Hua Hin Office 27/7, Petchakasem Road, Hua Hin, Prachuap Khiri Khan 77110 Thailand TEl +6632 530 177 fAX +6632 530 677 EmAIl info.huahin@colliers.com

thailand Property awards

Best agent (eastern Seaboard) 2010 Best Bangkok agent 2010 Best agency deal 2011 Best Commercial agent 2011 Best Property management Company 2011 Best Property Consultancy 2011 Best residential agent (resort) 2011

This report and other research materials may be found on our website at www.colliers.co.th. Questions related to information herein should be directed to the research department at the number indicated above. this document has been prepared by Colliers international for advertising and general information only. Colliers international makes no guarantees, representations or warranties of any kind, expressed or implied, regarding the information including, but not limited to, warranties of content, accuracy and reliability. Any interested party should undertake their own inquiries as to the accuracy of the information. Colliers International excludes unequivocally all inferred or implied terms, conditions and warranties arising out of this document and excludes all liability for loss and damages arising there from. Colliers International is a worldwide affiliation of independently owned and operated companies.

accelerating success.
www.colliers.co.th