As we enter a new year it’s the perfect opportunity to consider what may lay ahead for Pattaya’s real estate market. You can have all the corporate strategies in the world, but it is often events outside of any one business’s control that shapes the direction of things, and this is certainly true when it comes to real estate.
Think economies and think natural disasters.
So it should have been no surprise that the recent flooding in Thailand would impact on the national real estate market both in terms of renovation to damages and in the emergence of people thinking differently about this sector.

Extended time in the city
If there could ever be termed a ‘winner’ from this tragedy it was Pattaya which saw large numbers of Bangkok residents, both Thai and foreign, spending an extended time in this city. It gave Pattaya the chance, previously not afforded, to showcase just how far it has come as a destination and state its claim for real estate investment.
It made Thai news that many expats working in Bangkok have yet to return there and now wish to relocate to Pattaya; such was their surprise at how the city is ditching its seedy reputation.
Condo sales grew significantly during this period as a direct result of the flooding and this trend from the Bangkokian market could very well continue to grow in 2012.

Expansion and growth
Jason Young of Vistas Development believes all areas across town should continue to see expansion and growth. He said: “Existing condo prices in Naklua continue to rise due to demand and lack of new land. The new Jomtien Second Road and the availability of land around it has opened up a whole new area of development, with many resort-style projects already planned.
“Consequently, with this mass development in Jomtien, I feel Pratumnak will grow even more as the city’s most desirable residential area. It’s very much at the centre of things now.
“All of these areas suit different types of people and their differing needs. The end of 2011 has been very active and I think 2012 will see a continuation of this all the way through.”
Everyone needs to keep an eye on what is happening in the American and European economies, if Europe falls into recession again then this would hamper the whole global market. We should also consider the growing Indian market, whose middle classes are seemingly going from strength to strength. They are buying in Phuket, so why aren’t they buying in Pattaya?
Once again I will beat the drum for golf in Pattaya, which has been voted the top destination for golf across Asia and Australasia. With the Thai tourist authorities armed with an additional Bt500m baht to market Thai golf around the world, this has to have an impact on real estate in the city.
Golf tourists spend 120 per cent more than average tourists according to IAGTO – the leading global golf travel brokers association – and this would be good for Pattaya in general.

Competing locations
Keep an eye on competing tourist locations in Thailand. Samui has seen tourism decline for the past two years and the only growth is from the lower-end, backpacker type. Could it be that a Samui hi-so would ever consider a place in Pattaya? Don’t discount the scenario too quickly.
Situations can change in an instant, but with a condo you do have something tangible that will always be there, it’s not like owning a stock that can be reduced to worthless in a flash.
So as investments – and homes – go, buying a property in Pattaya does appear a good option for 2012.