Known for beautiful beaches with an overall tone of tranquil sophistication, properties on the Northern Beaches of Pattaya make up some of the country’s most prime real estate. The proximity to the beachfront, access to amenities and high rental yields make Pattaya a popular lifestyle choice for investors, families with children, and people looking to buy holiday homes.
There are several ongoing development projects in Pratumnak Hill and Central Pattaya areas. Most of these projects are condo developments dominating the real estate industry in Thailand, which are easier to purchase than a house on the land. With the help of a reputed real estate agent and a Thai lawyer, purchasing a condo should be a straightforward process.
Choosing a property that fits your lifestyle
Whether you’re an overseas investor looking for investment property in Thailand, or a holiday home buyer from Bangkok, you have a variety of options to suit your needs and budget. Whilst Wong Amat is popular among local holiday makers from Bangkok, Pratumnak area, which covers the thoroughfare between Pattaya and Jomtein Beach, is tranquil and well-suited for residential developments, making it attractive for new condo developments.
With breathtaking views of the ocean from high-rises, and its central location, Pratumnak is a popular location for investors looking to get good value on their investment. Central Pattaya has a relatively high demand for rental property and makes it a great choice for an investment property with high rental returns. If you’re on a budget, well-developed suburban Jomtien has affordable condo options, from reputed developers such as Apus Developments, who offer great value for money. With modern, stylish architecture, Riviera Developments have luxury high-rises; Blue Sky Developments offer luxury condos for those seeking a resort-style lifestyle, all in the popular Jomtien area. Heights Holdings, Matrix Developments, Raimond Land, and Sansiri are also some of the prominent names in the industry to look out for.
Luxury projects offer beachfront properties with well-curated landscapes, including recreational facilities such as a fitness center and spa, tennis courts, and plenty of green nature strips. With the cost per square meter of condos being considerably reasonable in comparison to Bangkok, it’s not hard to see why so many people from Bangkok want to buy holiday homes in beachside Pattaya.
What you’ll need to know before buying a condo
We can guide you when buying a condo in Pattaya, whether you’re looking for a home to live in or an investment property. When buying a condo from a developer, you may want to understand the different ownership structures that are available to you. With condo developments, developers are allowed to sell up to 49% of the total units available to foreign nationals on a freehold basis. For this reason, you may find that pricing is often varied, or that payment terms can be listed separately for each project depending on whether it is for foreign ownership or purchase by a Thai national.
You will want to ensure that the development is covered by the Condominium Act.
Learn about the taxes that you may need to pay
For off-plan properties, you will need to pay various taxes to the Land Department once the property is registered in your name. There is a transfer fee of 2% paid either by the seller or the buyer or both, depending on the agreement, a special business tax of 3.3% and stamp duty of 0.5% and may be paid entirely by the seller. Each developer may split the taxes differently, however, the total taxes payable by the buyer do not usually exceed the maximum of 6.3%. These are not upfront costs but expect to settle them in usually about 3-6 months after the handover process.
With the annual property taxes in Thailand as low as 0.02% for owner-occupied homes, this means that the only ongoing costs you may incur after the purchase includes the maintenance fees and your utility bills. If you are going to be renting out your condo for commercial uses, a ‘rental’ tax will apply at a rate of 12.5% per annum.
What you need to know about buying off-plan
While buying off-the-plan in prime locations is very lucrative, however, it does not come without a couple of risks. You will be purchasing your off-plan condo before the construction has been completed, with the risk that the project may be delayed or left unfinished, postponing your investment returns.
Before you make a deposit, you want to ensure that you are aware of what, if any, inclusions you will get as part of the condo on completion. You want to verify that the developer has refundable deposits or contract terms that are favorable to you should things not go to plan.
It is advisable to inquire about future infrastructure projects, commercial or retail developments planned in and around the area as this can have a positive impact on the property’s price for the future. Ensure that you understand all the teams in the contract, payment plan structure, as well as the clauses if the developer were to default.
Look out for the track record of developers
Condo developments in Pattaya move rapidly and reach their 49% foreign ownership limit in no time. With gross rental yields in Pattaya varying from 5% to over 10%, it’s no surprise that these units go quickly.
First-time developers may often have less experience in complying with government regulations or may risk discontinuing projects for the lack of funding options available to them. On the other hand, if you have a good risk appetite, many successful first-time developers may offer you a great deal with huge cost savings.
You can verify the track record of the developer to understand their completion rates and turnaround times. A reliable developer will usually have a long-term history of project completion and a variety of projects for you to view in person.
You can refer to marketing brochures for ongoing projects while you inspect a unit for sale at one of the developer’s already finished condos to compare the finishes, floor plate, and features of the home, to give you confidence in the purchase.
If a mid to large scale developer is selling to you an off-plan property, it is likely they will mention that they are Environmental Impact Assessment (EIA) approved. Most countries have a law on the books to ensure that future developments are economically feasible, similarly, EIA ensures that Thai people in the area are benefited from the new development. And projects are given the green light to commence only if they satisfy all the building regulations.
You may want to evaluate reviews on real estate forums to get an idea of how likely they are to complete projects on time. In recent years, few developers decided to put a temporary pause on the construction and sales in the Jomtien area, some mid-tier developers slashed their prices to boost sales or announced the sale of the project to larger developers for further development and completion due to insufficient funds. You want to do your due diligence to ensure that you are buying from a reliable source.
Buying off-plan or properties under construction in Thailand allows investors to invest in prime real estate with a high rental yield, and if you purchase a quality development, you will see the greatest returns.
As your real estate agent, we can handle all aspects of property management from helping you source the best condo, to renting out the property on your behalf and streamlining your rental revenues to a bank account of your choosing.
Rental properties across Pattaya have a constant demand from all over the city, and at all different price ranges so occupancy levels are always high. Buying in upscale markets or prime locations will involve making an off-plan purchase from a builder, however, if you buy from a reliable developer with a proven track record, you can rest assured that you’re making a great buy.