At the Krungthep Turakij seminar on the outlook of the property market in the resort, Raimon Land Plc development director David Alexander announced a new development worth Bt2.5 billion which would be introduced this year.

The property company is now selling Northshore Pattaya, a condominium project launched in the third quarter of 2004 and one of the Grade-A condominiums in the city selling accommodation units at Bt60,000 per square metre or more.

Out of a total of 5,051 units in 15 projects, Grade-A units account for 521 units, and 79 per cent of them have been sold.

"The market should continue quite well, especially in Grade-A condominiums, as reflected in the high take-up rate," said Alexander. "The market should remain healthy if supply is kept at this rate, and the price should not go down unless a very bad situation occurs."

Alexander pointed to the emergence of several five-star hotels which would bring in top-end international travellers who could

turn out to be buyers and the Suvarnabhumi Airport, which would bring more visitors to the city. Among buyers of Northshore Pattaya, 35 per cent are British, 25 per cent American and 18 per cent other European. Thai buyers account for only 19 per cent.

Aliwassa Pathnadabutr, managing director of CB Richard Ellis (Thailand) Co Ltd, agreed that investment in Pattaya had grown with the advent of the new international airport.

"Demand for new investment in hotels and resorts has increased in the last two or three years because almost all foreign and local investors believe that tourist business will come back to Pattaya, especially in the high-end market," she said.

Pattaya properties are cheaper than those in Bangkok and Phuket, another resort destination where

a residential unit can demand a price of more than US$1 million (Bt38.3 million).

"After the disruption in development, Pattaya's boom cycle has started. While Phuket is oriented to foreign buyers, there are a lot of Thai buyers who are interested in buying a property in Pattaya. The units in the preferred price range are limited. Thai buyers won't pay more than Bt15 million for a resort home. On average they pay only Bt10 million," said Aliwassa.

Meanwhile, the second-home market also has potential growth in Pattaya, according to Phanom Kanjanathiemthao, managing director of Knight Frank Chartered (Thailand) Co Ltd.

Foreign investors in Pattaya mainly come from China, Russia and Scandinavia, he said.

International Real Estate Association secretary-general Nivat Lamunpandh said there had been a rapid increase in land prices in the resort.

"Three years ago a 10-rai plot near the beach went for Bt4 million a rai, but now it is Bt8 million-Bt12 million a rai. Plots in the inner area are now about Bt800,000 a rai, up from Bt300,000 a rai three years ago," he said.

Following the property market growth, Nivat said that Pattaya's mayor should review the city plan and rebrand Pattaya from sex area to prime tourist destination.

"I think Pattaya is ready to change its image," he said.

He added that the mayor should also look at the infrastructure, especially water supply and security, as the city continued to grow.

Alexander also said the infrastructure had to be improved and entertainment venues revived as people demanded more retail space and facilities for families.

He was certain that, despite political uncertainties, Pattaya would enjoy a lengthy boom period if it got everything right.

Achara Deboonme,

Somluck Srimalee

The Nation