Pattaya is the jewel in the eastern development crown, but it’s by no means the only diamond in the rough. And with a new international airport opening just 40 minutes away, one could say that the sky is the limit for the sheer size and scale of future Pattaya property developments, and the international agents that wheel and deal them.
Spotlighted in countless local and international publications, the potential for property investment on the eastern seaboard is attracting an increasing amount of attention. With the bursting of Thailand’s property bubble in 1997, the market was pretty cool for several years thereafter, but the past half-decade has seen some tremendous growth potential.
Previously, oversea agents channeled their efforts towards Phuket, but the positive press, scale of projects and potential for growth has lured them into the market. This should help educate and attract more international prospects. Walking around the town, it’s easy to see that there’s a large contingent of companies ready to dive into the lucrative, expanding market. Sales agents and property companies are nearly as easy to spot as 7-11’s. It’s clearly a market rife with companies waiting for the coming influx of cash.
It was to be expected – after all, for every success story in Thailand, be it movies or fashion or restaurants, there are five others that crowd onto the bandwagon, often without meeting the minimum requirements that others spend so much time attaining.
But Pattaya isn’t a self-supporting economy, sequestered from the rest of Thailand; the two are linked. Keep in mind that over 80 percent of housing units in this area are bought by Thai buyers, who are a product of the economy. Growth here is a direct mirror of economic growth in general, and we all know how quickly that can change.
The biggest change that the region has ever seen will arrive shortly, with the opening of the Suvarnabhumi International Airport. But it’s not just Pattaya that will profit from the new airport. The surrounding areas will get an injection of cash and opportunity as well.
Nevertheless, skittish nerves about all the activity on the eastern seaboard are hidden not too far under the surface. There are a few projects around that trigger raised eyebrows when their names cross the table. For obvious reasons, people don’t want to go into too much detail, but the best advice that anyone can take is to research where a project’s financing is coming from and how it’s structured. There have been projects in the past where the money has flowed in, the construction has started and then poof. A half-finished building and a few unscrupulous individuals who flee the country with suitcases full of cash. Being forewarned is being forearmed. Having a real estate lawyer familiar with Thai law go over things probably wouldn’t hurt.
But, with prices rising an average of 30 to 40 percent each year for the past several years – one of the highest rates in South East Asia – the future is definitely looking bright for property investments. Many people are taking advantage of the market by investing in short term properties – getting in and out with a small but easy return.
