Michael Barricelli with Big
Mango Properties shows a graph to the PCEC showing additional condominium
units becoming available in Pattaya during the next 3 years.
What is the status of the Pattaya property market? On
Sunday, October 12, Michael Barricelli gave his update on today’s market to
the Pattaya City Expats Club; he last provided the PCEC with an update on
October 30, 2011. Master of Ceremonies Richard Silverberg introduced Michael
noting that he is the founder and managing director of Big Mango Properties.
He was also co-publisher for two property-related publications; the Pattaya
Condo & House Reference Guide and the Property Newsletter - Pattaya.
PCEC Master of Ceremonies
Richard Silverberg presents Michael Barricelli with a Certificate of
Appreciation for his interesting and informative update on the Pattaya
Property Market.
Before coming to Thailand, Michael had over twenty years
of experience as a senior financial manager/chief financial officer for
large healthcare organizations, was corporate financial controller for
Harvard University, and was a manager for a “Big 5” consulting firm
delivering technology solutions to Fortune 100 and large, non-profit
clients. Michael also founded a boutique consulting firm delivering
consulting services to hospital clients in the United States. Michael holds
a BS in Accounting from Northeastern University in Boston, Massachusetts
(USA).
Toy from Pattaya Orphanage
provides information to PCEC members and guests about the upcoming “Love and
Care Charity Concert” at Alangkarn Theater on Saturday, October 25. The
Concert is to raise money for the Orphanage’s Education Fund.
Michael gave a very comprehensive presentation covering
many aspects related to the Pattaya property market such as: (1) currency
fluctuation impact on the market drivers; (2) factors impacting on the
Pattaya market; (3) who is buying property in Pattaya; (4) what is selling
in Pattaya; (5) describing the distinctly different “markets” that exist;
(6) properties that are selling well in the market; (7) what has been
happening to pricing; and (8) factors to consider on whether to buy a condo
or a house. He also briefly went over due diligence for purchase of condos
“off plan” and some pitfalls when searching for properties to buy.
Currently, he mentioned that currency fluctuations have had an impact on the
market. The Russian ruble for one has fallen against the Thai baht. He has
not noted any Russians “dumping” their properties, but acquisition of
properties by Russians has slowed. Further, although both the US dollar and
British pound have increased against the baht this past year, it does not
appear that there has been any increase in activity from the past year. He
said that 3 years ago the Japanese were buying, but currently they appear to
be selling off. He thinks that in the future, there will be more Chinese
buying properties in Thailand.
A primary factor impacting on the Pattaya market includes the supply of
condos continue to increase in most areas. Michael pointed out that at the
end of 2013; there were 55,000 condo units in the Pattaya area with many
more under construction. In his last presentation, Michael said that he had
mentioned that big developers from Bangkok had started building in Pattaya.
Today, even more are involved. Mike then showed several slides depicting
several of the projects currently under development, their status, and the
increases in square meter price from their initial off plan offering to what
they are going for today as construction is more near completion.
Richard Smith advises that
about 60 people have signed up to receive their flu shot at the next Sunday
meeting of the PCEC.
Currently, he explained that there is more demand for
houses over condos. This is primarily due to rising prices for condos that
keep getting smaller and smaller in size. However, he cautioned that the
purchase of houses by foreigners requires an understanding of Thai laws and
how to structure the acquisition to ensure compliance while protecting the
investment.
He stated that what is selling well in Pattaya now are: houses, particularly
in the 3 to 5 million baht range; new developments from long standing Thai
developers; new project launches from trusted foreign developers with a
positive track record; resale contracts in condo projects which are nearing
completion or just recently completed, and commercial properties (both for
sale and rent). Michael noted that developers launching their first projects
are finding it difficult to sell in Pattaya’s competitive market. Also, well
priced second hand properties (houses and condos) always have strong demand.
He also briefly described the distinct market areas and current pricing for
condos in baht per square meter as: Starter/entry 50,000, Budget 50,000 to
65,000, Moderate 65,000 to 95,000, High 95,000 to 150,000, and Exclusive
greater than 150,000. Michael said house prices are about 30 percent lower
than condos in these market areas. Michael mentioned that currently there is
a need in the rental market for units in the range of 15,000 to 35,000 baht
per month; especially in East Pattaya and Jomtien areas.
Michael then listed several benefits and drawbacks related to owning a condo
or a house. He also gave several pointers on what one should do for due
diligence if purchasing “off plan” (off plan is entering into a contract to
purchase before the project is built or while it is under construction) and
emphasized one needs to know their own risk tolerance as buying off plan has
more risk than purchasing an existing condo or one that is very near
completion.
To learn more about Michael and his company, his website is at
www.bigmangoproperties .com. Previously he had two offices in Pattaya
(Wongamat and Jomtien), but has now consolidated in a new East Pattaya
location on Boonsamphan Rd (Soi Khao Noi). His office telephone number is
038-377-040.
Master of Ceremonies Richard Silverberg then brought everyone up to date on
upcoming events and called on Roy Albiston to conduct the always informative
Open Forum where questions are asked and answered about Expat living in
Thailand, especially Pattaya.
For more information on the PCEC’s many activities, visit their website at
www.pcecclub.org.
