Invest in Pattaya Property? Real Estate-Property Investment


1.   Real Estate in Pattaya

Investing in the Pattaya property market is nothing new. All major players in the international hotel industry have invested billions in Pattaya in recent years yet there is still a shortage of hotel rooms in the high season. Investors from Japan and Hong Kong are all very active in Pattaya and seize every opportunity to increase their capital. Fact is that even at a time when the US Dollar is weak, firms from the US are lining up to invest in Thailand.


Joint ventures between local and Singapore based real estate development company’s are no rarity. Large supermarket chains like the UK’s Tesco Lotus and the France’s Carrefour are both present and in December 2009 at a cost of 600 million Baht, Makro opened its 44th Thai branch here in Pattaya. The Hilton group built new hotel above the new Central Festival shopping mall. Cartoon Network Waterpark is near, over 50 Golf courses are built with international standards.

2.  Why should you invest in a condo in Pattaya ?

Little Pattaya has as many tourists in a year as Spain’s entire Costa del Sol but weather wise, Andalucía lags well behind. Stats show that people go to Spain for the enjoyable climate but March & April can be extremely wet and if you are unfortunate, you may even see snow in winter. If you go to Pattaya at any time of the year, you are certain that the summer clothes in your luggage are all you need and that your swim suit will be put to good use. Even during Thailand’s wet season, the temperature remains the same and rain very rarely lasts more than a few hours before the sun is back out.

Then compare the price you pay in Pattaya for a 360 sq.m villa on a 1500 sq.m plot with lush landscaped gardens, a guest house, large swimming pool with Jacuzzi, computerized irrigation system, car port for 2 cars and a remote controlled sliding gate; with the price you will have to pay in Marbella on the Costa del Sol.

You will most likely end up with a bill that is 3 times higher and the question is would you have everything listed above in the package – probably not. All of the luxuries available here in Pattaya are for a fraction of what you might be expected to pay in America or Southern Europe in areas where holiday makers flock to a sun spoiled climate.

As your property appreciates in value in Thailand, the profit is all yours when you sell. Capital Gains Tax does not exist in Thailand and investments are appreciating year by year.


3.  How to invest in a condo?

As a rule, studying ‘rock solid’ facts & figures is the minimum any investor should do before looking to invest anywhere. Successful investors always check the total of the country’s economy and its trends, the region, the city and its future perspectives, to try to ascertain the actual status of the market.

The market in Pattaya is far from saturated and the demand is higher than the condominium market can cope with, especially in the elite luxury sector. The market is still wide open.

As a foreigner there are certain restrictions to buying land or a single house on a plot of land but you can own a new condo / flat / apartment in your own name. Therefore foreigners purchase condominiums as Second, Vacation, or Retirement Homes in much higher numbers than in other countries where purchasing of plots of land is without hindrance.

The purchase of land and a house is achievable but it is a complicated process so for an easy, trouble free purchase, Condos are really the best way to go. We have no hesitation in recommending that prospective investors in Holiday Homes, Permanent Residences or Buy to Let Investments look no further than our developers can satisfy their needs in Pattaya’s real estate market.

High quality properties developed here in Thailand by our developers use advanced state of the art construction methods that stand the test of time. Interiors are finished in the finest of materials such as tropical hardwoods, premium natural stones, first quality ceramic tiles and top quality sanitary ware. Each bedroom enjoys its own en suite bathroom and these are just the general features on offer when you invest into a condominium or apartment building constructed and developed by our developers.

4. Wondering about  Foreign Ownership?

Non-residents are permitted to purchase condominium units in Thailand, according to the 1991 condominium act; payment of the unit must be transferred from outside Thailand, entering the country as foreign currency to be exchanged into Baht, with instructions that the funds are to purchase a condominium and providing details of the unit. A “Foreign Exchange Transaction Form” from the recipient bank must be completed for each transaction, all of which must be presented at the Land Department to register the condominium.

If the purchaser has permanent residence or holds a nonresident or foreign currency bank account containing Thai Baht, they may use these funds for the payment of the unit in Thai Baht. For the transfer of the condominium, a withdrawal receipt and certificate issued from the bank is required.

The law also stipulates that foreign ownership of the entire building should be a maximum of 49%, owned by non-Thai and 51% owned by Thai or Thai company. This is calculated on the basis of floor size rather than units. Each unit holds its own title deed. It is the only law within the Thai property legal framework which allows foreigners to have direct property ownership.

5.  Pattaya Property Market

Known as the Thai Riviera, Pattaya is regarded as one of Asia’s top beach resorts. There are more than 30 international-standard golf courses within 30 minutes drive of Pattaya, designed by household names such as Jack Nicklaus and Nick Faldo. Pattaya’s other leisure attractions range from the sedate (tropical gardens, Buddhist temples, zoos, fishing and sailing) to the more active (amusement parks, museums, go-karts, horse riding and shooting ranges), ensuring a constant flow of tourists not merely looking for beach pursuits and attracting more famillies.

The project is located in the coastal resort of Jomtien, Pattaya in the province of Chonburi. Pattaya is nestled along a picturesque bay on the East Coast of the Gulf of Thailand, roughly 170 kilometers southeast of Bangkok. From a fishing village in the 1960’s, Pattaya has emerged as the favourite Southeast Asian vacation centre.

Since the opening of the new Suvarnabhumi Airport just outside Bangkok, Pattaya has begun to see the widespread construction of new retail facilities, entertainment and shopping centres as well as international hotel chains, golf courses, international restaurants and family entertainment. All of these will benefit Pattaya and broaden its appeal to both tourists and investors alike.

The Chonburi region has a significant expatriate community and growth increasing at more than 20% year-on-year over the past three years. The strength and growth of the expatriate community highlights the growing demand for property rental and resale. Property buyers in Pattaya are looking for both second home and investment. Demand for more permanent rentals is also emerging with increasing local business activity and foreign long-stays (retirees.)

Pattaya continues to attract astute property investors, who believe today’s market conditions offer the opportunity to lock into excellent future returns, either from rental income or through capital growth.

Condominiums are popular among international investors as they are more affordable and the only type of property in Thailand that a foreigner can own 100% freehold. Security and maintenance issues are handled by common area management, adding to the confidence in a holiday home investment.

Russia recently entered the top five buying nations to demonstrate the emergence of Eastern European investors. Increased interest from China and South Korea is due to the easing of restrictions on fund transfers. The Germans, French and Scandinavians are also important buyers, and reflect the increasing trend for Europeans to purchase second homes outside traditional European resort destinations. Many have either relocated to Pattaya, spend the European winter there or live in regional business centers such as Singapore, Hong Kong and Shanghai.



6.  Return Of Investment (ROI)

There is a strategy for all types of investment, from a short-term hold approach that relies on the capital growth alone, to a long-term investment scenario where the estimated 12% rental yields will add a supplementary income to the investor.

Almost all of our projects are now being sold at 25% under average market value, which gives the investor an immediate return on investment.

Short-Term Hold

For investors who wish to adopt a low capital approach to the market and dispose of their investment as soon as the property is built. The plan is to buy off-plan under market value and sell it immediately after completion. This scenario illustrates a cash purchaser and not leveraged through loan to value mortgage products.

For this short-term investment scenario the following has been assumed:

• The property is to be held for the next two years and is to be sold immediately after completion.
• After 2 years and considering a 15% capital appreciation the apartment will be sold,with a Return on Investment (ROI) of 65%.

• The apartment will be resold to the local market and benefit from the demand generated in the Pattaya area.


Mid-Term Hold

This strategy is better suited to the leverage-based investor who wishes to generate income as well as capital growth.

For this mid-term investment scenario the following has been assumed:

• The property is to be held for the next five years to benefit from the capital growth of the property and the benefits of the 12% estimated rental yield.

• After 2 years the property is ready to rent out.

• As the apartment is fully ready at completion, the investor will not only benefit from the rental yield, but will also be able to sell it easier and at a higher price.

• After 5 years and considering a 15% capital appreciation the investor will sell condo with a Return on Investment (ROI) of 170%.

Here is EXAMPLE ( please take this as example, this is past information and cannot be used as future calculations)



Off-Plan Project Investment

When purchasing an “off-plan” project in Bangkok or Pattaya, you should be able to achieve at least an 8% ROI if you purchase the right property. Buying/Investing in this kind of Property can get you Pre-Sale price from 25%-30% which can be your profit, when Project is fully finished !

Off-plan projects is a property before a structure has been constructed upon it. Pre-constructions are usually marketed to Real estate developers  and to early adopters as developments so that the purchaser can secure much better finance terms from their lenders.


Investment scenario for a studio apartment details
Total purchase cost in USD 33828
Equity in 100,00%
Investment period (years) 5
Time to completion (years) 2
RENTAL (from completion)
Conversative monthly rental income 511
Occupancy 80,00%
Commission Letting costs 10,00%
NET monthly rental income 368
NET Annual Income 4419
NET Yield 13,07%
Total NET Income over 3 years 13,259
Investors cost
Condo average Price 33828
Sinking Fund + Water + Electric meter 611
Setting up company+Lawyer fee+ 1989
Annual Balance Sheet (28.000 USD capital)
Cable Fee 102
White Goods + Furniture (some projects free) 5655
Transfer fee 3.3% 1116
Maintenance costs over 3 years 1211
Total Investor cost 44506
Purchase value 33828
Estimated Purchase Discount 25,00%
Estimated Market Value 45093
CAPITAL Growth Rate 10,00% 15,00% 20,00%
Potential value after 5 years 72624 90699 112212
Additional Income (Rental) 13260 13260 13260
Total Income 85884 103959 125472
ROI (profit) 41379 59455 80964
ROI (%) 92,97% 133,59% 181,91%
Estimated calculation. Actual calculation may vary, prices in USD, use 1 USD = 35,18 THB