These 3 Thai resort destinations
still prove irresistible
F
oreign interest may have waned a
little in the Thai resort market but
three locations are still attracting
interest from offshore buyers,
according to property services firm
Knight Frank Thailand. Demand for
real estate in the top resort destinations
of Hua Hin, Pattaya and Phuket is still
there, despite recent stumbles in investor
activity.
“While such activity has slowed,
each of these markets retains specific
attributes that continue to drive sales and
new project developments,” according to
Risinee Sarikaputra, director, Research
and Consultancy Department of Knight
Frank Thailand.
Risinee added that diverse buyer
profiles characterise the three resort
markets, and developers and investors
should take note of each locality and
even global events that could affect
certain markets.
In Pattaya, condominium developers
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June 15 - July 15 , 2015
could expect difficulties in selling
properties that are specifically marketed
towards Russian buyers, who are
among the top investors in the area.
Risinee noted that the Russian economic
recession is definitely impacting the
purchasing power of Russian expat
buyers and, more generally, cautioned
that investors – whether Thai or foreigner
– should check if a particular developer
is capable of completing a development
and deliver to buyers in time.
On a positive note, Knight Frank said
that certain zones in Pattaya, such as
the non-tourist area of Wongamat, still
upholds its ‘exclusive residential’ area
reputation with a higher average selling
price than the more affordable Jomtien
area, where condos sell in the range of
THB40,000-60,000 (USD1,190-1,780) per
sqm. In swanky Wongamat, affluent
buyers from the United Kingdom,
Scandinavia and the United States
outnumber moneyed Thai investors.
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Meanwhile, in Hua Hin, Knight Frank
observed that developers are tapping on
the resources of middle-income buyers,
who prefer smaller studio and onebedroom units that made up 71 percent
of supply in the past year. “This was
due to improvement in accessibility,
namely the proximity to Bangkok, better
infrastructure, and completion of large
retail venues and entertainment parks.”
Knight Frank noted that one- to
two-bedroom units, valued at around
THB3-5 million (USD89,170-148,600)
per unit, remain good investments in
the area. Seaview units also command
a 59 percent uplift in prices, with some
projects surpassing the USD100,000 per
sqm threshold.
Elsewhere by the Andaman Sea, the
resilient Phuket market boasted an