In response to the growing market, CB Richard Ellis plans to open a new office in Pattaya.

As a result of the opening of Suvarnabhumi Airport and continued improvements in both infrastructure and the property market, more property developers are now entering the Pattaya market and launching a variety of developments, including residences, international chain hotels and retail and lifestyle facilities. This will benefit Pattaya and increase its attractiveness as a convenient leisure-home location.

The company is seeing more people buying houses and condominium units in Pattaya as first homes, second homes for leisure and relaxation and retirement residences. CB Richard Ellis managing director Aliwassa Pathnadabutr said the rise in demand had been seen in all grades of residential property - particularly condominiums - and proven by good sales performances.

A good example of a successful project in Pattaya is The Sails, a five-star beachfront condominium project that has already sold more than 75 per cent of the total units. Another successful development is Baan Talay, a luxury single-detached housing project on Jomtien Beach with a starting price of Bt15 million that has received a lot of interest from Thais and foreigners looking for luxury resort homes with true privacy. Prime locations in Pattaya include Wong Amat, Khao Pratumnak and Jomtien, where many commercial and residential developments have been constructed.

For residential projects, especially in the luxury market, prime areas have been extending towards Bang Sarae and Tawanron Beach, both of which feature stunning scenery, clean beaches and higher levels of privacy. Most of the projects are located on the beachfront or within close proximity of the beach. Ensuring sea views from units is a crucial element for grade-A developments in achieving high prices.

The latest survey of residential condominium projects in Pattaya conducted by CB Richard Ellis' research team reports there are six high-rise developments being actively marketed totalling 966 units, 70.4 per cent of which have been sold or reserved.

CB Richard Ellis forecasts there will be only 329 grade-A condominium units at several projects that are scheduled for completion next year and another 463 in 2008. The total supply of grade-A condominiums will then reach 2,100 units next year, which represents only 8.5 per cent of the total market.

Given the strong demand and limited high-quality supply, prices have been increasing. The average price of grade-A high-rise condominium developments at prime beachfront locations is now Bt85,000 to Bt110,000 per square metre.

CB Richard Ellis believes Pattaya is now riding the rising wave of a new property cycle as demand continues to improve and expects to see developers launching more new residential condominium and holiday-home projects in Pattaya next year.