Hello September! or “Wake me up when September ends”
Please forgive the repetition and for the sake of sounding like an echo of my own feelings, but 2018 is passing me by somewhat speedily.
Not to open the argument of whether times passes or continues – all I’m trying to say is this year is flying by, well for me it is.
For those of us living in Pattaya it’s currently what we would describe as ‘low season’. Truth of the matter is I’m not sure currently it matters. The demographics in this country’s ‘tourism’ have changed so colossally many of us ‘old timers’ are still trying to work it out.
With that being said the ever-changing scenery of our playful city is set to evolve and grow even more over the coming months with Terminal 21 North Pattaya nearing completion and the huge infrastructural development of East Pattaya, Lake Mabprachan, Na Jomtien and The Eastern Seaboard ongoing.
All of the above I see as positive additions to the landscape of Pattaya, Jomtien and the surrounding areas.
This positivity is something I am seeing within the real estate industry with more condo launches and sales being reported by developers than we have seen in the previous couple of years.
Clearly the influx of Chinese buyers has had a huge impact on the market. However embracing the domestic market seems to be key at present with the majority of people I speak to (at least those who are presently successful) finding this market as their mainstay.
Areas south of Pattaya City such as Jomtien, Na Jomtien, Bang Saray and beyond are reveling in the current boom with Bangkokians lapping up their beachfront condominiums and pool villas.
Obviously focusing on Thai buyers makes common sense as foreign buyers are a lot more transient and may often only stimulate the market over short periods.
Having said this, with the EEC Development Plan destined to propel Thailand as a powerhouse for industrial production and being initially focused in the three eastern provinces of Chonburi, Rayong and Chachoengsao it opens up the area to serious investment which is guaranteed to spill over into the real estate market.
Rayong is a prime example, hosting seven million visitors alone last year.
In fact, it has been well reported that property firms over the past year have spent in excess of Bt200 billion launching new projects across the three mentioned provinces with the government alone targeting the areas with an investment budget of more than Bt700 billion for development along with 700+ domestic and foreign firms expressing an interest in the EEC.
The Eastern Seaboard of Thailand is already responsible for more than 20% of Thailand’s GDP.
Put simply, the EEC is already the breadbasket of Thailand and it’s about to increase its capacity ten-fold.
With all the current investment both from Thailand and overseas It’s being reported that 80% of foreign property sales within The Kingdom are Chinese which, in itself, is a mind-blowing statistic with 75% of these buyers being aged between 30 and 49.
Juwai.com states these five things as major factors drawing Chinese buyers to Thailand:
Thailand is just a short six hours away from China, and that makes it a pretty perfect location for Chinese buyers to move to, as it is far enough for them to savour a more liberated and desirable lifestyle, yet close enough for frequent trips back to visit friends and family.
Compared to the red-hot property prices in China right now, Thailand’s CBD condominiums and resort properties look like a downright bargain for homebuyers from mainland China.
Some 67% of Chinese buyers claim to have an investment budget for overseas property of between US$70,000 and US$150,000.
Thailand allows foreign buyers direct freehold ownership of condominiums, as well as common property co-ownership.
Large Chinese presence
Thailand is already home to one of the world’s largest Chinese diaspora out of China, so its culture and cuisine already offers enough similarity that would be easier for mainland Chinese to adapt to.
Besides relatively inexpensive housing prices, less complicated sales-purchase conditions, as well as lower down payment rates and property transfer fees, real estate in Thailand offers good rental yields too.
By Paul Johnson