According to international property firm CB Richard Ellis, Pattaya is on the upward trend of the property cycle albeit the growth of the overall property market in the resort city is below projection due mainly to the Foreign Business Act amendment.

The Bangkok Post 18 November reports an interview with Aliwassa Pathnadabutr, CBRE’s managing director: total condominium stock in Pattaya including Condotels is about 24,800 units in 2006 and is expected to reach 27,800 units by the end of this year. Less than 10% of the total condominium stock is the luxury supply.

Among the recent launches of luxury properties are the 543-unit White Sand Beach on Jomtien Beach and The Chateau Jomtien in the Pratumnak area, housing 317 units in four towers. CB Richard Ellis expects more launches of condominium projects in Pattaya.

She said the residential market in Pattaya faced challenges from strict enforcement of the property ownership law that limits foreign ownership in a condominium project to 49%. Demand from foreign buyers exceeded the limit and the challenge for developers is to sell the 51% Thai quota of a condominium.

“To effectively strengthen this resort market, the foreign ownership quota should be enlarged,” said Ms Aliwassa.

Pattaya is now viewed as Thailand’s most accessible resort destination.

Its villa segment is growing in line with the tourism industry and the rising trend of second and retirement homes in Thailand. There are 17 luxury villa projects, comprising 626 units, being marketed in Pattaya as of the third quarter of 2007, and about 54% have been sold.

Most of the projects are located next to a beach or within proximity of Jomtien Beach. Prices of these luxury villas ranged from 6.8 million baht to 60 million baht. However, as a result of increasing land prices, more villa projects are expanding to Na Jomtien and Bang Saray to the east of Sukhumvit Road.

Ms Aliwassa added that the 9%-per-year average growth rate in tourist arrivals to Pattaya was a positive sign for both the hotel and residential markets.

Hmm. Again the statistics tell us the ‘slump’ is being over-egged. Or maybe we simply haven’t seen the ripple effects from the sub-prime debacle.

What’s your view? Do you think the sceptics are right and Pattaya’s property market is overheated – or do you go with CBRE’s view? Let Thai Property News have your views now.