Rising prices of beachfront locations prompt developers to avoid ocean views in Pattaya property market. Pattaya’s Songkran festival, which ended last week, is a good indicator of just how rich this beach town has become because of the hotel and condominium boom.
Sukhumvit Highway, the main artery feeding Pattaya, was jammed with traffic all day and night. However, the town can now afford to turn away tourists during the weeklong event.
Pattaya’s real-estate sector is flush with cash as more projects flood a market that is already swamped with supply. A number of new sites were launched recently – some offer big discounts while others are taking advantage of the boom.
There is also a sharp difference between the offerings of the new sites and the older ones.
The move today is toward the inland areas that were once shunned by developers since they do not have ocean views. Some beachfront land costs more than Bt12 million a rai, which is too steep for most builders.
Many developments, such as Urban Pattaya and Avenue Residences, are built away – not just a few metres but entire blocks away – from the beachfront.
Some do not afford sea views at all as beachfront land has become so scarce and expensive that it no longer draws interest from many builders.
Urban Pattaya, for example, is a 2-rai, 45-square-metre project between Beach Road 2 and Beach Road 3.
Its two towers, eight floors each, to be completed next year, will have 158 units, priced at Bt58,000 a square metre, equivalent to many mid-range Bangkok projects.
The developer is confident of meeting the construction schedule as it does not need to wait for an Environmental Impact Assessment (EIA) approval. Like many astute builders, it has split the project into two, each containing 79 units.
According to the law, estates with less than 80 units need not obtain EIA approval. Buyers should therefore not fear long delays.
Since most of Urban’s one-bedroom units are booked, it is now selling two-bedroom apartments spread across 78 square metres with a starting price of Bt4.6 million.
The move toward inland condominiums started some time ago. Pattaya City Resort on South Pattaya Road near the Sukhumvit Highway junction, was one of the first high-end projects that saw no need to take up a beachfront location two years ago.