Real Estate development in Bangkok, Pattaya, and Phuket to remain hot!

Developers  continue to remain confident in the property market in 2013. Predictions are property will grow by 5-10 per cent, this based on strong growth in gross domestic product, which is anticipated at roughly 4-5 %.

This confidence is spurring a plan to launch new residential projects worth more than Bt200 billion next year. locations targeted are the  Greater Bangkok community and upcountry regions such as Chon Buri, Pattaya, Hua Hin, Chiang Mai, Phuket and Khon Kaen.

The top three property firms - Pruksa Real Estate, Land & Houses and Sansiri - told The Nation last week that they would each launch between 30 and 40 projects, totalling nearly 100. These 3 developers projects are estimated to be worth around Bt90 billion to Bt100 billion.

Asian Property Development, a top 10 listed real estate firm, is planning at least 18 projects worth a total of Bt20 billion. SC Asset Corporation is also planning at least 14 projects worth Bt20 billion, and LPN Development is planning at least another10 projects. their projects will also be worth between Bt15 billion and Bt20 billion. This creates a total investment budget for these launches next year will be between Bt100 billion and Bt130 billion.

 Pruksa Real Estate president and chief executive officer,Thongma Vijitphongpun has stated that the company has strong confidence demand for home purchases will grow next year at an estimated 5 to 7 %. This is in line with Thailand's expected GDP growth.

Kree Dejchai, SC Asset Corp chief operating officer, said the company would continue to focus on the middle-to-upper-income market next year. Up to 70% of its new projects will be low-rises projects including detached houses and townhouses.

Most property firms stated that the market this year would post 5-per-cent growth over 2011.



 

Caution on Condos in Pattaya

There has been much speculation in recent years regarding the condo boom around the Pattaya area...is it getting over built. I saw this article in the Bangkok Post todaystating smaller developers may run short on funds for completion of projects due to rising construction costs and Pattaya possible getting over built. Future prospective buyers are always advised to consult a lawyer and conduct their own Due Diligence. Best advice is to stick to the more established developers and consult with local real estate professionals. Here is the article:

Pattaya condos 'may not be built'

Home buyers must be extra cautious in purchasing condos in Pattaya as smaller developers are expected to face difficulties in actually starting construction of their projects, according to a major developer, SET-listed Raimon Land Plc (RML).

Reuters Photo

According to the latest Raimon Lands annual research publication Condominium Focus Thailand: Update for Inner-City Bangkok and Pattaya, 28,892 condo units are expected to be completed in Pattaya over the next three years.
However data gathered over the last one year (from the second half of 2011 to the first half of 2012) shows that 3,258 units have already been officially suspended.
Simon Derville, Raimon Land’s deputy vice president for business development said the majority of the units suspended tend to be low rise, 8-storeys high and without beach front or sea view, which makes it difficult to sell.
He forcasts that the number of development projects that would not be able to secure financing due to low pre-sales could reach up to 10,000 units over the next three years.
"If you are buying from someone you never heard of, you should definitely double check, ask a lot of questions and do our own due diligence," he said adding that buyers should find out if the developer actually owns the land if they have secure financing for construction and what their previous construction projects include.

Ultra Modern New Lowrise Condo going up in Na Jomtien

Pattaya and Thailands Eastern Seaboard continue to develop! Old third world charm seems to be diminishing as developers continue to push for Nu Vo artisitc designs combined with affordable luxury. Porchland's latest developement will be located in Na Jomtien and already appears to be a hit as approximately 40% of the units have already been reserved. Check out this artice from Pattaya Times:

The unique concave arc-shaped exterior of the Feelture will surely attract new generation buyers.

The Feelture is a new condo project that will rise in Pattaya with the starting price of just THB 900,000 fully-furnished.

Mr. Chisanucha Pukdeesaneha, Project Director, said “The Feelture is the sixth project under Porchland. It has an investment of THB 50 million. The project will be built on four rai of land consisting of two buildings of eight storeys each totaling 301 units. There are three room types;

• Type A: One bedroom (36-54.5 square meters)

• Type B: One bedroom (37.5-63 square meters)

• Type C: Two bedrooms (57.5 and 59 square meters)

All the rooms are fully furnished including electrical appliances, sofa, stove, air-conditioners, television and refrigerator. The starting price begins at THB 900,000.”

The project is designed with a very modern concept: its concave arc-shaped structure as its signature. The room contains modern art that is in harmony with nature. The project facilities include a 450 square meter swimming pool, a fitness center, restaurant and a rooftop garden.

“The project has been well received by customers so far due to its below-market price that makes it affordable by local citizens. About 100 units have already been reserved-- about 40% of available units. We are hoping to close the reservation period in about three months,” he added.

The project is located on Sukhumvit Soi Na Jomtien 4. The project is expected to begin construction in December this year and will be completed by December 2013.

“Porchland is committed to affordable residential condominiums. Our next project will be building Bang Sarai, suitable for those who prefer peace and quite,” he concluded.

Show units are available at the office located opposite Tesco Lotus on Sukhumvit Road at Threpprasit. For more information visit their website www.prochland.com.