Pattaya new zoning regulations are expected to increase value for property investors who wanna buy quality condo project in prime locations on sizable land.
The regulations, which come into immediate effect, decrease plot ratios from 10:1 to 5:1 and are aimed at reducing the density of buildings in Pattaya and decreasing pressure on the city’s infrastructure.
Effectively, developers now need a four rai site (6,400 sqm) to build a 30,000 sqm condominium, which guarantees optimum size for efficiency and aspect, while on a two rai plot (3,200 sqm), they can only build a 15,000 sqm building.
Nigel Cornick, CEO of Kingdom Property, the developer of Southpoint Pattaya, welcomed the new regulations, saying they are good news for city planning.
“It will cut out the 16 floor buildings that have been emerging on 1 rai sites and cause a shake out in the market,” he said. “It will also create an even playing field and developers who focus on quality and long-term value to buyers will be comfortable with the regulations.”
Kingdom Property recently sold 87 units of the company’s debut project to Hong Kong-based Purple Link Investment Company (PLIC), a sale which represents total space of 3,983 sqm.
Total sales of the twin-tower Southpoint Pattaya development now stand at over 60 percent, with the entire Suites Tower sold earlier this year to a local Thai investor who will develop the 224-unit building into internationally managed serviced residences.
Cornick said the latest sale to PLIC was indicative of the re-emergence of the quality-focussed Hong Kong market as a property purchasing force in Pattaya.
“The Hong Kong market is demanding in terms of build quality and on-schedule project completion,” he explained. “We have a long track record in Thailand for delivering on both, which is one reason why we are a good match.”
For property buyers, Cornick believes Pattaya represents excellent value as an investment option, especially given that the tourism industry is expected to bring 10 million visitors to the destination this year.
Domestically, the city is also expanding at pace thanks to a booming manufacturing sector on the Eastern Seaboard, which helps drive the local economy.