If you have travelled around Pattaya, you will no doubt have noticed that lots of older and more run-down properties have been demolished and the landscape in the area is changing. There are lots of reasons for why this may have happened and knowing the definitive answer is possibly debatable but here are some of the reasons that have been suggested, but we would be interested to hear your thoughts.
Make way for superior buildings
Without a doubt, one of the main reasons for knocking older buildings down is to make way for more modern and superior replacements that will generate more revenue for owners. With the changes in the demographics of people coming to Pattaya, this makes plenty of sense and confirms the idea that Pattaya is continually evolving. Whether this represents value for money is only something that can be answered in the forthcoming years.
Why not investing in a large condominium in front of a land where a landmark project is to be built ?
Illegal buildings in the first place
Another reason for buildings being demolished is because they were illegal in the first place. It was common a few years ago after the military coup, but it still something that is happening. Generally, buildings that are deemed to be illegal lay derelict such as the Waterfront Condo at Bali Hai Pier. Although this would appear to be a waste of prime real estate, the cost of demolishing such a building would be enormous.
Owners want to make the land available
Properties that either lay empty or under-occupied are not attractive to investors looking for land in prime locations. Vacant land that perhaps even has planning permission for a new condo or hotel is far more marketable with developers and hoteliers being in a position to “break ground” far faster. Land in prime locations is steadily increasing in price, so this is a desirable option for landowners and makes perfect sense for clearing the land.
A new plot of land on the market at a strategic location just at the beginning of Pratamnak hill not far from South Pattaya fly-over
Underused properties became expensive to run
A problem that has become evident in the Naklua Road area is that many of the older hotels had long periods of under-occupancy, making them costly to run. Rather than merely closing the hotels and leaving them to decay, thus losing value, many owners decided to knock down the properties as soon as they closed. Again, this is something that makes perfect sense and makes the land more attractive to investors without incurring the wrath of the authorities who may not appreciate large amounts of derelict buildings.
Alleged incentives to improve the area
Although it may only be gossip and rumour, it does hold some credence that incentives have been offered to property owners to knock down disused or poorly maintained properties. Pattaya has been trying to smarten up its image for several years and to have rundown buildings in some of the area’s most prestigious locations does little to enhance the perception that City Hall and the Tourist Authority of Thailand are trying to portray. The incentives may not have been financial, and they are only rumoured.