The property development market in Thailand is seeing more and more residential property development, with competition for the best residence in Pattaya as more and more developers work on residential properties in order to bring in premium prices and meet buyer demand.
A research by the property consulting group C9 Hotelworks, noted the number and spread of these new developments across Thailand. Currently, there are approximately 29 new hotel residence projects in the country being developed, with an overwhelming majority of them being developed in or in close proximity to the resort areas of the country.
According to their research, the Southeast Asia Hotel Residence Market, the top 3 locations for such properties are Phuket, Pattaya, and the country’s capital, Bangkok, with 26, 10 and 9 projects respectively.
With 41 completed residential projects amounting to over 21,000 units, Thailand currently accounts for 41% of the region’s supply, according to the research by C9 Hotelworks. Indonesia follows, whilst Vietnam’s Danang is drawing more and more attention to itself as a favoured market for developers in the region.
In Thailand, Phuket has recently had 13 completed development, with an additional 13 still in the works, matching the area’s reputation and history of luxury hospitality-led residences such as Amanpuri, and Sri Panwa. Bangkok, however, has made some headway in the residence market, with marquee brand projects from global icons such as Four Seasons and Mandarin Oriental, resulting in prices in the city skyrocketing to an average exceeding Bt315,000/m2, in comparison to the national average which sits at around Bt101,000/m2. Most of the marquee brands that pop up in the capital tend to be located around the Chao Phraya River. Pattaya, whilst not as big a hotspot as the other two, does see some competition for best residence in Pattaya, clocking in as the third city in terms of residential developments.
C9 Hotelworks’ Bill Barnett has already commented on the data, saying that there is a clear connection between branding and pricing premiums. According to him, their research show a brand premium demonstrated by prices ranging at 15-20%. He adds that, with the vast majority of the supply; approximately 92%, being brand affiliated, C9 Hotelworks expect this trend to continue in the foreseeable future, seeing it as the primary preference for both property developers and buyers alike.