Pattaya Property Report

November 2010 As we move into the year's penultimate month, we hit the beginning of the traditional tourist high season for Pattaya, although I think it is fair to say, from a real estate market perspective at least, that not much usually changes from October to November. And so it has proved again this year. Accordingly, it would be a mistake to suggest that the tourist high season is identical to the high season for property sales, even though the former obviously has a significant impact on the latter.

Typically, in real estate terms, the busy tourist season manifests itself in an increase in activity for a couple of weeks in early December before the Christmas and New Year festivities begin. Then things tend to be busiest from early January through to March/April. Of course only time will tell if things are going to follow a similar pattern this year.

One thing that certainly has followed the expected pattern is the weather. As normal, once November came around, someone somewhere turned off the taps so the rain showers stopped. Thereafter, we have had dry, sunny weather and generally extremely pleasant temperatures, typically in the late 20 degrees centigrade. It really is a fantastic time of the year to be here. That being said, it is only fair to point out that in this part of Thailand, with the exception of the six weeks or so in September and October when most of the rain falls, the rest of the year is actually pretty good weather-wise. It can sometimes get a little hot, but that is far less of a problem when you are on holiday than when you are going into work in long trousers and a collared shirt.

Since last month's column, we have taken on a new member of staff. Our new sales manager, Lee Knights, has a total of eight years experience working in the Pattaya real estate market and accordingly is well known by developers and other real estate people around town. We welcome Lee to Sallmanns and very much hope that he will be a member of the team for many years to come.

We have also recently entered into a business partnership with a leading solar power company run by Professor Dusit, PHD, Thailand's leading authority on solar power. As a result, we are now able to offer extremely interesting solar power solutions for all sorts of potential customers, ranging from individual home owners to property developers and commercial clients, such as factory owners. The on-grid options involve connecting your solar panels up to the electricity grid and selling the electricity you generate to the Provincial Electricity Authority. Due to the environmentally friendly nature of solar power, the government pays incentivized rates for such power to the extent that these systems generally pay for themselves in a period of between 9 and 10 years, i.e providing a return on investment of around 10% per annum. With systems starting at as little as 300,000 Baht they provide an amazing opportunity to "go green" and also to make a healthy financial return on your money, particularly bearing in mind that the panels come with a 20 to 25 year warranty. I will provide more detailed information next month.

As sellers prepare for the expected busier months, we have been spending a lot of time recently visiting properties and taking details of new listings, many of which are very interesting in terms of the value for money that they offer. As usual, you can find details of several properties below, including, unusually for this newsletter, a Bangkok condo. As you will see a number of the properties have been reduced in price, making them particularly good deals.

In addition, I have an update to report on the apartment building in Bang Saen that I mentioned a couple of months ago. The place is now operating at 100% occupancy, which is indicative of the quality of the place and the excellent value for money that it offers to its tenants. Now it is full it earns roughly 400,000 Baht per month. At the same time, in an attempt to encourage a quick sale, the owner has reduced the price to 49m Baht. Bearing in mind how well the business is operating and the quality of the construction it really does represent an extremely good deal.

For investors looking for somewhat of a smaller investment, we have a couple of very attractive pool villas for sale, at 5.4m Baht and 5.9m Baht respectively. At the moment they are being rented out as holiday villas on short term rentals. They are currently earning verifiable net incomes of 14% and 13% per annum respectively, which again makes them very interesting propositions for investors who are seeking a solid income from their property investments.

Simon, the developer of Tudor Court Condominium on Pratumnak Hill called this morning to ask me to mention that they have just “topped off”, i.e. put the roof on, their development. Obviously he is proud of his achievement, particularly bearing in mind the challenging market with which he has been faced during the lifespan of the project. Units remain available within the development, which benefits from double skin-cavity wall construction and other Western standards, notably those related to the mechanical and electrical aspects of the building.

For immediate notification of the best new deals as they crop up, register to receive messages on www.twitter.com, from account TJG1969.

For many more listings, please visit our website at: http://www.sallmansthailand.com

If you are looking for land, investment property, commercial property or hotels, please contact me direct, either by telephone (+66 87 137 0392) or by email.

Have a great month.
Tim Gladwin
Sallmann International Property Consultants