Bangkok Citismart Co, the brokerage subsidiary of Asian Property Development Plc (AP), yesterday opened its first office outside
Pattaya’s property market is expected to reach a new peak within three years.
During that time, the new subsidiary will study the market and collect data before deciding to invest in property development here.
The Pattaya office will be followed by one in Hua Hin in next year’s first quarter and Phuket in 2013.
The first phase of the Pattaya operation will target Thais looking for condominium units priced from 2-6 million baht.
Sometime next year, the focus will shift to foreigners seeking condos priced more than 6 million baht, followed in 2012 by marketing towards people living in or near Pattaya who want single houses or townhouses.
“Pattaya’s property market slowed in late 2008 on the global financial turmoil and has not yet bounced back,” said Pumipat Sinacharoen, the chief executive of Bangkok Citismart.
Foreign buyers have not yet returned, but the number of completed condo units grows each year 32,000 to 38,000 entered the market each year from 2007-09 and about 39,000 just in the first half of this year.
At the same time, construction permits peaked at 1 million square metres in 2008, dropping to about 700,000 sq m last year due to the economic crisis.
Mr Pumipat said that while Pattaya’s resale market remained sluggish, the rental market was bright due to the city’s location near major industrial estates.
Jomtien has the largest condo market in the area with 38% of the supply, followed by Pattaya (35%), Pratamnak (17%) and Wong Amat (10%).
The company now has 300 resale condo units available in Pattaya worth a combined 1.5 billion baht or five million baht each on average.
It expects to have 500 to 1,000 units next year and targets 2011 sales of 150 million baht from the Pattaya market alone. About 70% will be resale units and the rest rentals.
AP’s total resale housing stock now comprises 10,000 properties worth a combined 4.5 billion baht, 60% of which are active. Of the number, 85% are condos and the rest single houses and townhouses.
AP had 1.96 billion baht in sales last year and targets 2.4 billion this year and 3.2 billion in 2011. For the year to date, AP has achieved 2.1 billion baht in sales.