Jomtien Area Shines Even In The Current Overwhelmed Pattaya Market
Of all the five zones that comprise the Pattaya region, Jomtien and Na Jomtien are considered the most prolific for investors looking to purchase condos and land in Thailand. In a recent report issued by Colliers International, in the first quarter of 2014 the supply of condominiums in the Jomtien area has increased by roughly 40%, meaning that it’s now over 70% higher than the previous months.
A possible explanation
Due to the political unrest in 2013 and the beginning of 2014, most buyers were forced to postpone their decision on making investments in the Pattaya region. Take note that many countries have warned their citizens to avoid Thailand as a destination during this period, especially since the NCPO showed no intention of cancelling the martial law.
The investors’ decision has determined major construction groupsto focus on sectors classified as below the high-end bracket. Thanks to the low prices and the numerous perks and incentives guaranteed for three years, Jomtien and Na Jomtien have become the main attractions for the condominium market in Pattaya.
Additional factors that made the Jomtien area attractive for buyers
Besides the lower price, construction companies preferred this area because of the high availability of land plots situated in the proximity of the beachfront. Nowadays, you can find affordable 1 and 2-bedroom apartments in luxury condominiums located as close as 50 metres away from the beach.
Moreover, constructors have put in an effort to draw entertainment companies in the region, services that will ultimately transform Jomtien into a genuine tourist attraction. Consequentially, there are several water park projects developed in the area that are expected to be completed until 2016.
Supply and demand
As previously mentioned, the Colliers International report suggests that around 40% of the available condominiums in Pattaya are in Jomtien and Na Jomtien. Since 2001, these areas have grown gradually and are currently outpacing other popular locations in Thailand. With over 20,000 units to be launched in the next three years, Jomtien seems set to take the highest share in the Pattaya real estate market.
As far as the demand is concerned, the investments have stagnated in the first quarter of 2014 mostly due to the political unrest in Thailand. However, as soon as the situation stabilized in the region, statistics showed an increasing demand. To be more precise, starting with June, the take-up rate increased by approximately 5%, the main investors being foreign citizens who were looking for a second home in Thailand.
Current prices of condos in Jomtien and Na Jomtien
While the price per SQM in the Pattaya region was estimated at 62,000 baht, in the Jomtien and Na Jomtien regions investors could purchase units with as little as 48,500 baht per SQM. According to the aforementioned report, the affordability of the condos has lead to massive investments in mid-range and low-range condominium projects. In spite of the fact that most of these developments are relatively far away from the beach, both locals and foreign investors state that the luxury facilities and amenities constituted the major factors of their decision.