Unixx in South Pattaya has enjoyed continued sales success and will begin transferring units to its buyers before the end of the year. But with so much reported doom and gloom in the Pattaya property market, what are the secrets behind the success of this development.
Dot Property Group’s Andrew Batt spoke to Kipsan Beck, the Vice President of Branding and Marketing for developers Raimon Land to discover more about the project.
AB What stage is the development at now, and what level of sales have you seen to date?
KB Unixx South Pattaya is being built by Prebuilt PLC, a leading Thai contractor, and was topped off in May 2015 (pictured). The interiors of many of the units are already complete and within the internal inspection process timeline. Facilities on the ground floor 5th floor and the sky gardens are mostly complete.
We will be starting transfers to the owners in December 2015, which is as planned, and allows the owners to enjoy high season in Pattaya. From late this year, visitors to Unixx South Pattaya will be able to view units in the actual building, which is a major selling point particularly for Thai buyers looking for a second home.
The current sales progress is that Unixx has sold 805 sold of its 1,209 units which equates to about 67 percent sold.
AB What are people buying, why are they buying (investment or second home) and what is the breakdown of nationalities?
KB We do not know precisely for every owner, but Raimon Land estimates based on sales feedback the split of theee groups of buyers at Unixx – 20 percent primary residence owners, 50 percent secondary residence owners (holiday homes) and 30 percent investors looking to rent the units out long-term.
The most popular units sold so far are the higher floors overlooking Pattaya and Jomtien Bay, since these were the ‘safer’ choice buying off-plan. Now we are seeing a substantial increase in the sales of the other types now that we can show images of actual views, as well as the upgraded facilities package.
Due to Raimon Land’s conservative down-payment policy, buyers tend to be purchasing mostly buy to use or rent rather than buying to speculate, and this also maintains a very high transfer success rate in the past (99 percent), which is expected to continue for Unixx. A substantial number of buyers chose to pay 100 percent upfront for their units.
AB What nationalities have been purchasing to date at Unixx?
KB Thais have purchased approx. 40 percent, and this is expected to increase this high season as buyers want to purchase and move in when building is complete. Europeans account for 31 percent (of which around 10 percent are Russians and 6 percent are from the UK).
Asians make up 21 percent of which around 10 percent are Chinese and almost 5 percent are Japanese. The remaining 14 percent includes a mix from around the globe and more than 40 different nationalities.
Beck added: “We are continuing to sell on average between one and four units every week in Pattaya, split fairly evenly between Thai and foreign buyers – and this is during low season. We are looking forward to solid high-season sales when the number of Thai buyers traditionally increases.
“Raimon Land’s policy of higher deposits has, in turn, has prevented any substantial exposure to either Chinese or Russian currency movements
“We’ve added Chinese and Russian speaking staff to our company, which helps to sell to international clients. During the last two weeks we have seen increases in the numbers of enquiries from international clients, reflecting construction progress and attractive Thai Baht exchange rates.”
AB There have been many media reports about the current and future oversupply situation in Pattaya?
KB There are a lot of properties in Pattaya, many of which are selling off plan, but properties which have unique features from leading recognised developers, particularly those with a proven record of delivering and completing in Pattaya, still remain highly sought after.
For example Zire Wongamat and Northpoint, as well as other waterfront locations, are seeing solid rental returns as they provide a high quality of life and are highly sought after. Obviously, there is a premium that buyers are willing to pay for a development when they can see the physical building, and Unixx occupies a prime location overlooking the central Pattaya area.
We do note that international buyers, particularly from across Asia, have a strong preference to buy from South Pattaya to Wongamat, including Pratumnak Hill, further south in Jomtien skews far more strongly towards Thai in terms of owner proportion.
For Unixx we believe our reputation, efficient layouts and price points with extensive facilities, which we think are some of the best in the city, with great views across both Jomtien and Pattaya, is a solid value for money proposition. This is reflected in the sales achieved to date. Our deposit policy also will enable us to maintain a high transfer rate.
Raimon Land is open to doing further developments in Pattaya because we believe there is always scope for good developments in a fantastic resort city like Pattaya. In the short-term our focus will be selling the remaining 9 percent at Zire Wongamat and finishing and transferring the units at Unixx South Pattaya.
Unixx has sold THB 304 million this year versus THB 200million during the same period last year, therefore the proof in sales shows that demand and volumes are high and increasing. The only question is the supply.
We expect to see the supply consolidate in the future while demand will continue to grow as a result of AEC, increased popularity of the Pattaya Bay area, ongoing gentrification and appeal for the Bangkok Thai market.
AB What are your thoughts about this and how are you adjusting (if at all)?
KB We believe the reasons people buy Unixx South Pattaya remain unique, attractive and relevant to both the Thai and international markets, and these include a prime location with dual bay views, extensive facilities, easy access to Pattaya South town centre for both owners and rental market and value for money – with prices from THB 1.6 million – with efficient layouts ideal for weekend trips or second homes
Raimon Land will also be hosting a property seminar for international investors on October 3 at The River in Bangkok to showcase all its properties including Unixx South Pattaya. All guests welcome to register.
AB What are your predictions for the “high season”, or is these no longer such a thing in Pattaya?
KB There is still a definite high season in Pattaya, when the north winds and beautiful weather encourages Bangkokians and international visitors to visit, and in line with that we see a substantial increase in sales.
In addition, Thai buyers often will buy at year end, in line with bonuses and New Year period. We expect to also see a bump in sales as clients will be able to see actual units and buy, ready to move in.
We therefore expect that Raimon Land will see a ‘high season’, and with the Thai Baht relatively low at the moment, our analysis shows that Thai pricing remains highly attractive within the region for beach resort property.
For more information about Unixx South Pattaya click here.
