Is it the End of Condo Mega Projects?

Just a few years ago there were plenty of high-rise condos making their mark on the Pattaya skyline and no shortage of investors keen to purchase space within these large-scale mega-developments. However, since the advent of COVID-19 this year, even though there are still new projects available, the focus now seems to be on low-rise condos where local buyers and investors remain active.

In the Bangkok Post recently, (August 2020), Thai developers Sansiri Plc reported total sales revenue in the past seven months of 24 billion baht of which 15.4 billion baht (or 64%) stemmed from sales of low-rise condos. Moreover, Mr Arnut Kittikulmethee, executive vice-president for low-rise project development at Sansiri declared that for the second half of this year, Sansiri is preparing to expand into the low-rise market with ten new projects worth a total of 11.7 billion baht.

Important national developers such as Sansiri are now adjusting their marketing strategies to concentrate on low-rise condo development and housing projects. They have even created a sub-brand Anasiri to target and support what appeals to a new generation of customers – those primarily with families. The Habitat Group is also looking at low-rise developments with an emphasis on vacation homes. Their CEO Chanin Vanijwongse believes “As the condo market slows down condo buyers perceive that if they buy a unit today, they should have a discount.”

Smart investment with the possibility of rental guarantee and cashback in the awarded development Albar Peninsula

Indeed, aggressive discounting or guaranteed investment returns and buyback deals seem to be the norm for this year’s developers of condominium projects with buildings of only around eight floors rather than the huge skyscrapers of yesteryear. The Wealth Asset Group, broke ground this month on The Rhine 1 Jomtien constructs in this way. Encouraging a more boutique, exclusive condo experience they have a total unit availability of just 150-200 units for their projects. They also see adding vacation experience facilities such as onsen spas, sky gardens, infinity pools etc. It is vital as is appealing to investors, residents and ex-pats keen to secure a unit in a country that has shown such resilience to the CO-VID 19 pandemic.

Hotel groups such as The Radisson Group are also keen to take part in the Pattaya property market with an association out towards the growingly popular Bang Saray area with Albar Peninsula. Having a hotelier association allows developers to have their property managed by experts in the field. Habitat’s projects in Pattaya are also hotel-branded residences with offers of an annual yield to target investment buyers. “During the lockdown, the average occupancy rate of pool villas rose to 80% from the usual 60%. Those residences were fully booked during weekends as people sought privacy while unable to venture out”, Mr Chanin said.

The COVID-19 pandemic has undoubtedly brought about a shift in buying habits with many buyers who have experienced lockdown or time spent working at home seeing life in a condo as instead too crowded without enough private space. Single luxury housing is becoming one of the fastest-growing markets with local buyers looking for new homes that can afford them more living space and greater privacy in keeping with the ‘New Normal’ way of living.

Buy a luxury house in the new trendy development near the future Thamassart University hospital near Mapbrachan.

So with this new way of living, it seems that property developers here in Pattaya and fact all over Thailand will have to carefully consider their strategies over the short, medium, and long-term. Already in areas such as Lake Mapbrachan and Huay Yai boutique housing projects are springing up to look after a new customer locating in Pattaya as the Easter Economic Corridor (EEC) develops. For example, The Plantation estate is following the success of its predecessor The Vineyard by the same developer. Also, new projects are emerging closer to town such as the beautiful Inara and Serenity Villas, which will be located just off Jomtien 2nd road.

Rather than build what might be seen as purely profit-led mega-developments, as was certainly the case in the formative years of the Pattaya property market, it is more important than ever to listen to prospective customers and find out what is important to them. High-end developers Grand Paradise Villa go so far as to say that their Prospect project will provide residential development that “metamorphoses together with your personal growth, and is expandable to compliment your ever-evolving lifestyle.”

Seeing how customers in the local property market want to live and the facilities they require will reap dividends. An appreciation of the fact that residents of Pattaya may come with families that need space, as well as proximity to good schools and recreational facilities, together with a preference for low rise facilities will be more critical than ever.

A sophisticated blend of urban and zen design for this new development just 5 minutes from Sukhumvit