Thai property developers continue to search for buyers by looking at new targets. One developer, Habitat Group, has recently decided to bypass end-users and instead focus on creating condominium projects for investors. Local media outlets reported that they will test the idea in Pattaya by offering buyers a higher yield than bank deposits provide. These yields will be guaranteed.
Habitat Group CEO Chanin Vanijwongse told media that he believes a different approach is needed for condo launches in Pattaya since the market is flooded with unsold units and full of competition.
“Pattaya has huge potential for growth, driven by the rising number of tourist arrivals, U-tapao airport’s expansion and a new motorway to Rayong,” Chanin explained. “But selling a condo for residence or as a vacation home is not enough due to the many units still available.”
This plan will begin with the developer launches its newest project, Best Western Premier BayPhere Pattaya, in September. The condo is estimated to be worth THB700 million and unit prices start at THB3.2 million. Investors who purchase a unit will be offered a guaranteed return of at least seven percent per year during the first five years. In addition to this, all owners can stay at their unit for 14 nights each year.
It was also noted that Habitat is looking to launch a villa project worth THB800-900 million in Na Jomtien between now and the end of the year. This development will have a return guarantee as well, but the amount has yet to be determined.
The developer has launched two projects during the past few years using similar techniques to attract investors. The Ville Jomtien was launched in 2013 and has already been completed. Habitat offered a return guarantee of eight percent during the first three years to buyers. Another project was launched in 2014 and will be operated by the X2 brand. That development has sold out already and should soon be open.
