Thailand has always been a popular travel and investment destination for South East Asian Investors. It is no surprise that Bangkok, in particular, has attracted a high influx of foreign property investors in recent years due to its rapid economic development and infrastructure.
Yet, there are many other “up-and-coming” investment hotspots in Thailand that were previously under the radar. For instance, Pattaya.
The first thing that comes to mind with Pattaya is vacation. Pattaya is one of the most popular tourist destinations in Thailand and millions of tourists visit Pattaya each year. In the more recent years, the number of tourists from China has also risen significantly.
This beachfront city is located on the Gulf of Thailand and is only 90 minutes from Bangkok, and just a short hour away from the main international airport, attracting throngs of local and international visitors from around the world. The new high-speed rail link from Bangkok is also expected to further cut the journey time down from 90 minutes to just 30 minutes.
Pattaya has everything you need, stunning beaches with mesmerizing views, large shopping malls, world-class hospitals, renowned international schools – all at highly affordable prices.
Here are 3 things you need to take note of when investing in Pattaya:
Homes in Pattaya are more affordable than Bangkok
For the same amount as Bangkok, you will be able to get 2 condos instead of just 1. Rental demand is just as strong in Pattaya with the millions of tourists that flock to the city each year. What more, real estate in Pattaya is still surprisingly affordable with average prices in Pattaya starting from just 7,340THB psf (~230USD psf)in comparison to that of Bangkok. It may also be worth noting that investors who enter the market now may still be able to invest in areas with beachfront views although more and more areas are being developed into high-end resorts.
Choose the Right Location
It is important to choose the right location, regardless of whether your objective is to purchase for investment or retirement.
Choose areas that are within walking distance to the main attractions like Beach Road, Second Road or Central Pattaya. It should be close to shops and restaurants because this will ultimately make it easier for you or any tenant to explore the city or run errands.
The right location will eventually help you attract short and long-term tenants and even secure attractive rental rates of up to 5% to 10% rental yield.
Choose a Reputable Developer
Does the developer have a proven track record? Is the developer reliable? Will the property be completed on time?
It is important to invest in properties built by reputable developers. Firstly, local buyers tend to trust the larger developers and the properties built by these developers tend to be able to better preserve the value of the property or even command capital appreciation.
For example, Sansiri, one of Thailand’s leading real estate developers recently saw the successful sale of a 30-year old unit in Baan Kaimuk condominium at 80 million Baht (~2.5Mil USD), a remarkable price for a relatively old property, further validating demand for properties by these developers.
Leading developers may also provide after-sale services which would be an important factor for those looking to buy-and-rent-out.
For instance, Sansiri provides after-sale services that include real estate brokerage services, project sales management, and real estate consultation services.
Sansiri also has a partnership with Hostmaker, a London-based upmarket Airbnb management service, to help turn your property into an ideal holiday rental home. From interior designing to pricing review to housekeeping and 24-hours key exchange, Sansiri and Hostmaker take care of every aspect of your rental property, saving you the hassle of having to manage a foreign property.
This May, Sansiri will be launching its new condominium – EDGE at Central Pattaya. For those interested in finding out about the investment potential for Pattaya, feel free to check out the project website, or simply send Sansiri’s Relationship Management team a message via the form below.