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dirtydog

Thought I would post one of the Pattaya real estate agents monthly newsletters I get, have to admit I have rarely seen prices come down in Pattayabut there does seem to be a bargain in this one if you got 14 odd million baht to spend, and even I have a Pattaya feel good story

A few years ago my mate bought 3 rai on Soi Thepprasit, ex rice paddy with some dirt on top, paid just under 6 million baht for it, never done anything to it, anyway they built a nice concrete road next to his land, only one slight problem, he felt that the road was enroaching on one side of his land a bit, so he pays the land office the 3,500baht for them to come and stake out his land, seems the road went a bit wonky and they have taken a bit down one side of his land, he wasn't that worried but thought he should find out what the value is now, luckily a plot next to his land had just been sold, at the price given at the land office it values his land at 54 million baht, that tiny little bit of land they have enroached on is worth over a million baht, he is now in negotiations with them

September 2009 During the course of the last month, in general terms, the market has remained very quiet. However, as a business, we have experienced a couple of bright spots amongst the gloom. I don’t think they have been enough to justify a belief that the market is set to improve to any significant extent in the near future, but they have at least reinforced my view that the market has bottomed out. Personally, I suspect that we will bounce along at or near the bottom for a little while before confidence returns to the extent that the local real estate market will properly recover.

I am very well aware of the kinds of views that more pessimistic individuals tend to share. However, I am an optimist and won’t apologize for focusing on the positive rather than the negative. I have watched the way that foreign visitors react to Thailand, and to Pattaya, for a long time. In simple terms, the vast majority of them love it and a significant proportion of them quickly become somewhat addicted to the lifestyle they can have here. Personally, I don’t believe that is going to change. So, while things may continue to be quiet for a while, in the slightly longer term, I am convinced that visitors, purchasers and investors will return in significant numbers.

Anyone who knows the Pattaya real estate market at all well understands very clearly that certain sectors of it are driven to a significant extent by foreign money. Accordingly, the performances of certain key economies overseas are important to the state of health of those sectors within the market. Thus, the news reports from overseas indicating that most major Western economies are now emerging from recession are potentially very good news for the local market. While it is unlikely to result in an immediate improvement in the Pattaya market, as economic recovery in the West continues, there will come a point at which more Westerners will again look to invest in property overseas.

One thing that has been apparent in recent weeks is that we are being instructed upon fewer so-called “fire-sale” properties. It is possible that, with the traditional high season now just around the corner, sellers are more confident of finding a buyer in the coming months without having to drop their asking prices to such low levels. However, it could also be an indication that the financial pressures suffered by individuals during the global economic crisis are now starting to ease, and so they no longer need to sell so quickly. Therefore, for anyone who has been waiting for the market to fall to the greatest extent before buying, now might be the time to commit.

However, there continue to be a few good deals around. Just today, I received instructions upon a foreign ownership unit in the popular Baan Suan Lalana development in Jomtien. I understand that the unit is a standard studio, which would make it 42 square metres, looking out to the communal swimming pool. I am told that the unit is nice inside, but, as we are due to view/photograph it tomorrow, I can’t yet comment. However, at only 990,000 Baht, the asking price is very attractive.

I have also just been instructed upon a very nice 80 sq m 1 bed/bath condo in the Northshore development on Pattaya Beach Road. This unit is on a high floor and is owned in the foreign quota. Accordingly, the price of 7.2m Baht is a very good one (apartments in Northshore have changed hands for up to 200,000 Baht per sq m), particularly bearing in mind that it is said to be negotiable.

For investors, we have a very interesting apartment block for sale, close to the South Pattaya Big C (actually just over the other side of South Pattaya Road). There are forty rooms, all of which have air-conditioning along with a good standard of decoration and furniture. The asking price is 23.9m Baht. The presence of air-conditioners in the rooms makes it the kind of place that would be attractive to a lot of foreigners looking to live here cheaply. Moreover, along with the standard of furniture, it means that the monthly rents that can be achieved are quite significantly more than for apartments without air-con. It represents a very good business opportunity.

It is also worth mentioning this house. Originally it was priced, not unreasonably, at 27.5m Baht. However, the owner has become increasingly frustrated by the continued slump in the property market and doesn't want to wait around any longer. For a cash deal, he has now agreed to reduce his price to 14.5m Baht, which is a superb offer. The property has double skin, cavity walls, UPVC double glazing windows throughout, nearly 3 rai of land, a sprinkler system in the garden, CCTV cameras, salt water swimming pool, etc, etc. There is also a tenant (the lease is in the name of a multi-national oil company) paying 1.32m Baht in rent for the next two years at least, a return of 9% per annum. It is a fantastic deal for an investor.

A few days ago I had a meeting with one of Pattaya’s most active developers. I was interested to hear that they have recently started construction on two new, very attractive and extremely competitively priced condominium developments, in spite of the fact that sales have not yet officially been launched for either building. As a cash rich company, they are in a position not only to do this, but also to offer extremely attractive financing deals to buyers. While the specific deals on offer vary dependent on whether a buyer is buying in foreign or Thai quota, the size of the deal, etc, I particularly like the entrepreneurial spirit of this developer. To a very significant extent their concern is the buyer, and they will do everything they reasonably can to make a deal. Accordingly, for anyone looking to buy a condo on finance, or for any investor looking for outstanding deals, my advice is to sit down with these people for a chat. I have always found them to be extremely good people to deal with.

Finally, by way of an up-date on the Gardens at Bang Saray, I was there last week to have a look at the first of the new style of house that is currently being built. For one thing, it is surprisingly big. For another, the materials being used are far better than one would normally expect for a house of that price. The walls are being built from 6 inch thick super-blocks, which offer very good insulation. The amount and thickness of the steelwork is also extremely impressive. If you have the time, I would strongly recommend going out and taking a look for yourself.

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For many more listings, please visit our website. If you are looking for land, investment property, commercial property or hotels, please contact me direct, either by telephone (+66 87 137 0392) or by email.

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