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Pattaya – Why is Big Money Building Everywhere?

image img_0050.jpgRecently I was driving around East Pattaya and had to be amazed by the amount of development going on there. There is a 4 kilometer stretch over there by Paradise Villa Two (about 4 km from Tesco South) where I counted about a ten high powered 50 + rai huge developments. Development is simply everywhere. Of course it isn’t just East Pattaya. You can see many new huge condo projects going on in Pattaya and Jomtien. Every corner of available land that can get a pre planned development on it seems like it is either currently being developed, or has been subdivided and is waiting development.

Some changes since the crash of 97 and implosion of that building bubble. That time it was easy for any Jane, Dick and Harry to go and borrow money and start a development of some kind. There were a lot of throw together shop houses being put everywhere, many of which still aren’t occupied. Nowadays, the situation is different. First off, bank money is tight. Secondly, the money coming in to do development seems to be for large well financed projects. Even if the projects aren’t built out at the beginning, it still takes a large amount of capital to purchase development land, subdivide and put in infrastructure.

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What is happening? There is a super expressway from the new airport to Sattahip aready approved. A new crocodile farm near Ambassador. Of course the biggie — persistent rumors of a casino going in, first at Ambassador and then another one possibly. Anyone have any thoughts or other comments on what is driving this rash of development here?

For the time it still seems there are more units going in than can be occupied. As I speculated here [previous article on building bubble](‘http://coolthaihouse.com/blog/?p=17″ bubble) are we in the middle of a bubble? Now, however, I’ve changed my outlook somewhat in a more property bullish stance. This is partially driven by the world wide appreciation in property prices. ergo. consider Pattaya a mini Europe or America, with Expats driving up property prices.

Pattaya continues to grow as a tourist destination and is continually attracting more and more visitors. If indeed the legalization of casino gambling comes to pass and casinos are located in Pattaya that would be a great boost for the fun city of Pattaya. The new expressway coming in from Bangkok won’t hurt anything either.

The big money must know something. My prediction is that even if there is some slow down in the take up rate of new units coming on line, the demand will continue to drive up property prices, especially land prices within close proximity to Pattaya.

2 Comments

  1. corruption

    same kind of black money that built jomtien

    after all you cant hide your ill gotten billions stolen from the public purse in a bank, so you hide it in land (in your wife’s name or close relatives)

  2. but would they put it there if it was a lousy investment?

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