Driven by high urbanization rate, new infrastructure development in the city and coupled with the potential for high capital growth makes Pattaya one of the most attractive places in the country to invest right now.
Residential investment on the rise
Condos in prime locations and proximity to the beach have had increased sales performance in the recent years. The stunning high-rise views of clean beaches, well curated premises and easy maintenance services offered by grade A development projects in Jomtien have been attracting both local and foreign investors. With fewer freestanding residential properties available, a strong demand for quality properties and the tranquility of Jomtien Beach has established Jomtien as an increasingly popular choice for condo development by reputed developers.
Jomtien, located about 5 km from Pattaya city, is a seaside township with an impressive beach that extends almost 6 km along the Gulf of Thailand, which falls under the province of Chon Buri. As a popular tourist spot, Jomtien is generally preferred for its luxury hotels, serene beaches and water sporting events. Apart from the pristine clear waters, Jomtien Beach is currently among one of the most sought-after residential property markets in the country, popular among both Bangkok residents purchasing holiday homes and retired expatriates.
If you are a foreign investor looking to invest in condo developments, which are mostly located in prime real estate locations in Pattaya, Jomtien is an excellent area for investment in residential condos. There are about a dozen large property developers in Jomtien with a solid reputation and many completed projects under their belt.
Making sure the numbers work
With due diligence, buying a new condo from a reliable developer can be a straightforward process. Many condo units are sold by the developer before or during the build, and this often involves offering steep discounts to buyers. It usually takes between three to five years for a condo development to be completed from the time sales first begin through to when the construction has been completed. Provided all things go to plan, it could be lucrative to buy off-plan and selling the units at a profit when the building is nearing completion.
To reserve a unit and sign the contracts, you often only need to make a down payment of 10-30% along with another 10-20% gradually over the course of a few years with installments payable monthly. Fortunately, the purchase of a condo in Thailand attracts minimal property taxes, however, of course, you’ll need to account for assessments and ongoing maintenance costs. While we want the condo to generate an acceptable cash flow over time, it is advisable to account for ongoing maintenance costs and vacancy for when times are dire. We find that setting aside at least 10% of the rent to cover for vacancy and an additional 10% to cover any maintenance costs, assessment, and association costs, will be a safe bet.
If you choose to rent out your investment property in Pattaya, rental income taxes are extremely low as there are many deductions. Your exact amount of tax payable will depend on any deductions allowed.
Large, reputed condo developers usually have fixed pricing outlining the details of the unit in the project, the features and amenities offered making it easy to calculate the gross rental yield. The Riviera Group and Reflection Condo, which are major completed projects are familiar names in the luxury high-rise condo segment. Riviera and Reflection developments pride themselves with successful track records in the residential developments in Jomtien.
All about the location
Located within a 10-minute drive to Pattaya City, Riviera Jomtien is a high-rise luxury condo with modern architecture design in a perfect combination of classic and luxury. Developed by The Riviera Group in 2019, the Riviera Jomtien consists of 1,095 high-rise residential units in the 46-storey high tower. Situated close to Jomtien Beach, Riviera offers a tranquil atmosphere with majority of the condos overlooking the sea. Proximity to Sukhumvit Road means that the development is close to shopping malls, tourist attractions and public transport with a rental yield of 5.4%.
Reflection Jomtien Beach Pattaya, developed by Major Development is an exclusive Bangkok based property developer who was one of the first developers to introduce the high-end condo segment to the Thai market and gradually expanded through to urban and affordable-luxury condominium segments. It has an achievable gross rental yield of 4.89% making it an attractive investment property.
Surrounded by major shopping malls, not too far off Jomtien Beach is Copacabana Beach Jomtien, which is a luxurious high-rise condo development project due for completion in 2022. The project will have 1644 units across 59 floors including a pool, beach club and spa while being surrounded by garden views that complete a relaxation vibe amid nature.
Completed in 2017, Urban Property’s developed AERAS is strategically situated on one of the best beachfront locations in Pattaya, Jomtien Beach Road. The development has panoramic views of the sea offering the perfect balance between the beachfront serenity and the vibrant life of urban living. It has two towers with 4 storey and 38 storey residences complete with a beachfront pool, sundeck, courtyard garden and jogging track. The units are ready to move in.
Located within 500m from AERAS is Cetus beachfront condo, built in the style of a modern resort with emphasis on experiencing nature up close. This is an excellent development that offers sea views up and down the coast with easy access to tourist attractions, public transportation to and from Pattaya, making it an attractive investment property with a gross rental yield in of 5.4%.
As your trustworthy real estate agent, we will handle all aspects of property management from guiding you to source the best condo to renting out the property on your behalf.
Investing in upscale markets and prime locations like Jomtien will have a constant demand from all over the country, and at varying price ranges guaranteeing high occupancy levels and thus high rental yields.