Review of “Changing Trends”

Back in December 2011, I wrote an article discussing how over the last 8 years or so, developers have changed the way their buildings and marketing have altered to accommodate rising inflation and still accommodate customer demand. As an example we spoke about how a few years ago standard studios were all around 40 square meters in size, with one and two bed units being bigger and more spacious accordingly. We reflected on ever increasing construction cost and the impact of this on the type and size of units developer could afford to build, hence designs changed to allow for as small as 20 square meter studios with new space saving furniture and TV’s etc.
Around 4 years ago my Real Estate business was working closely with a local developer on his marketing and we we’re about ready to launch his project and start construction. Unfortunately the economy took its sudden ‘plunge’ and the project was put on the back burner as to speak rather than become a half built project sitting there with very little sales being made.
The project and construction were re-launched just a couple of months ago, and I was apprehensive to see how the sales would progress, with all the units being of the sizes we used to see back in the day, and not to my surprise, things have been going extremely well. What this has highlighted to me is that there is still a huge market in Pattaya for the end user. All of the units we see being developed are these small, specifically designed condo’s. Has it got to the point now where the market has been flooded by these projects and many of these developers have missed the boat with the end users.
I heard that one of Pattaya’s most renowned developers has just recently expressed his own concern about this at a local seminar and that his marketing and design are going to diversify to meet this end user clientele.
Through my years of experience (which is limited), I feel that in marketing terms the end user is also much easier to accommodate. Many investors come and buy for one of two reasons. One is for capital gains and the wish to “flip” the property within the construction period or soon after, or to secure good rental returns from the properties. The end user is the person that knows what they want. They want space to live. They tend to have a higher budget and with this you tend to find they will pay for what they want rather than haggle too much and to squeeze every last drop out of the developer.
If you look at the number of these space saving condo developments that have been built or are soon to be constructed in the Jomtien area, I feel there is going to be a major over supply in this type of condo, and even with an increase in demand with tourism and people expatriating to the area, is this going to be enough. I feel the rental prices in the Jomtien area over the coming years will not increase, and may even go down slightly with landlords fighting to get tenants rather than paying fees for empty property.
With this in mind I think many of Pattaya’s condo developers would be astute in concentrating a little more on the end user product. Rather than trying to mix these smaller units with a ‘few’ larger ones to accommodate the different clients, design a ‘Residence’ to accommodate and give the end user what they want.
I have recently been shown a new development soon to be released in the Cosy Beach area. I was amazed to see a splendid 21 storey building with large sweeping balconies and large unit sizes, some as big as 120 square meter one bed units. It is planned to have just 72 units throughout the project and the developer has a vision of this new project being a Pattaya landmark and one of the area’s most exclusive properties. So, with what my thoughts are as I have mentioned above, I feel its watch this space and let’s see how sales go. I hope for my own sake I can sell a few so not to look such a fool!
For more information on this forthcoming development feel free to contact me on pattaya@paradisecityproperty.com or call on 0817613238.

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