How will the rail project impact Pattaya's real estate market?

A survey found that Pattaya is a major residential supplier in Chonburi, with condos accounting for 55% of its properties. Investors recognize Pattaya's attractiveness, and Habitat Group's CEO, Mr. Chanin Vanichwong, foresees continued growth for the city's real estate market in the next 3-10 years. The imminent high-speed rail project is poised to trigger substantial changes in Pattaya's real estate market, potentially boosting property prices and demand.

Mr. Chanin Vanichwong noted that the latest survey data from the past two weeks, as reported by Colliers Thailand's research and communications division, shows that Pattaya is the main hub for residential suppliers in Chonburi, with 55% of them being condos. Looking ahead to the next 3-10 years, Mr. Vanichwong remains optimistic about Pattaya's potential for growth, expecting it to more than double. As evidence, he points to the skyrocketing price of land in Thonglor, which was previously valued at 5-6 hundred thousand baht per square wah but has now reached 2.5-3 million baht per wah due to saturation.

However, if you look at the picture of Bangkok during the time when there were no BTS or even MRT trains, the price of a condominium unit was 50,000 baht per sq.m. Condominium prices have jumped to 300,000 baht per sq.m. We also look at Pattaya City in the next 5-7 years. The high-speed rail project will be another factor that changes the image of real estate quite a lot.

Pattaya land prices jump more than 100%. Take condominiums and turn the COVID crisis into opportunities. "During the time of COVID We do not have new investment projects. But focus on existing projects, plan, schedule, move forward, which in 2023, Habitat will increase the company's growth, will not increase Growth from investment alone, but actually, the COVID that happened is not just an issue. good But there is a hidden opportunity. causing Habitat to invest in finding new projects And developed into a new project under the name "Bayphere Premier Suites" adjacent to the Best Western Bayphere Pattaya project, the price we received when calculating as a margin. Higher than the margin of the overall real estate market Which is about 15-18 percent, but now land by the sea costs about 3-3.5 hundred thousand baht per square wah, 120-150 million baht per rai, but if going to the Wongamat zone, a large plot of 140 million baht is also available, but go back 6- Seven years ago, land by the sea was about 70-80 million baht, "said Mr. Chanin.

Mr. Chris Cherdsuriya, Advisor to the Executive Board of Honor Group Co., Ltd., discussed the direction of investment that with the potential of Pattaya city growing continuously. As a result, the company's future plans continually focus on investing in the eastern region. Both in the area of Pattaya, Sriracha and Rayong provinces. Currently negotiating land purchases with the owners of many plots of land. For the development of residential projects for sale and rent. By focusing mainly on the condo market, in 2023, a new project will be launched in the form of a pool villa with 75 units worth 200 million baht on 8 rai of land in Na Jomtien Soi 2.

Ms. Thida Cherdsuriya, Chairman of the Board of Executive Directors An affiliated company of Honor Group discussed the progress of the mixed use project on more than 4.5 rai of land on Pattaya 3rd Road that now the ONCE PATTAYA project is a 32-storey condominium with 427 units, with an average selling price of 140,000 baht per square meter. m. The project value is about 2,000 million baht, about 70% of which have been sold, divided into 50% of Thai customers and 20% of foreigners who buy for living as a second home and buy for investment. The construction is expected to be completed by the end of 2022 and will begin to gradually transfer condominium units to customers by the beginning of 2023.

Mr. Chalermpol Khoncham is the managing director of Color Development Co., Ltd, a real estate company investing in Pattaya. He noted that despite the luxurious nature of beachfront condos, they still receive positive feedback from Thai customers who purchase them for holiday relaxation or as a primary residence.

The buyer profile of "Arom" (AROM) condos suggests that Thai senior executives and business owners in Bangkok are the primary customers, while residents of Hong Kong and Europe make up the foreign clientele. Meanwhile, customers from China have only requested information but not committed to buying.

Currently, Color Development Co., Ltd has two condo projects under the brand "Arom" (AROM) available for sale in Wongamat Beach and Jomtien Beach. The company achieved 20% of sales during informal pre-sale and about 90% after the launch. The 314-unit development comprises 45 floors, of which 11 floors have been sold primarily to Color's repeat customers who purchase them as a second home.

Investors are drawn to the real estate market in Pattaya due to its potential for future growth. Developers such as Honor Group Co. and Color Development Co. have expressed interest in investing in the area, primarily in the condo market for both sale and rent.

The high-speed rail project is set to bring significant changes to Pattaya's real estate market, including a surge in demand and property prices in the region. These changes present promising opportunities for both buyers and investors, and the future of Pattaya's real estate market looks bright.

In conclusion, the Pattaya rail project is a significant infrastructure development that aims to connect Pattaya with Bangkok including other nearby provinces through a modern and efficient rail system. This project is expected to have a positive impact on the Pattaya real estate market in several ways:

• Increased accessibility: The Pattaya rail project will make it easier for people to travel to and from Pattaya, which is likely to increase the number of visitors to the area. This increased accessibility will make Pattaya a more attractive destination for both tourists and residents, which is likely to boost demand for real estate in the area.
• Improved transportation: The new rail system will provide a more reliable and efficient mode of transportation, which is likely to encourage people to commute more frequently to Pattaya. This may increase demand for residential properties in the area, as people look for convenient places to live near the new rail stations.
• Boost in tourism: The Pattaya rail project is expected to increase tourism to the area, which is likely to have a positive impact on the local economy. This may lead to an increase in demand for short-term rental properties, such as holiday homes and also serviced apartments.
• Potential for commercial development: The new rail stations may provide opportunities for commercial development, such as shopping malls, restaurants, including other amenities. This may increase demand for commercial properties in the area, as businesses look to capitalize on the increased foot traffic.

Overall, the Pattaya rail project has the potential to significantly boost the real estate market in Pattaya. With increased accessibility, improved transportation, and the potential for commercial and tourism development, the project is likely to make Pattaya an even more attractive destination for investors including property buyers.

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