Buying land and houses in Pattaya

Beachfront land doesn’t come cheap in Pattaya

Pattaya is close enough to Bangkok to be reached easily and quickly via the highway network, but also far enough to allow for peaceful breaks from the bustling life in the capital. These two aspects have contributed to transform Pattaya into a booming property market and it is now common among foreigners to invest in Pattaya properties. Although condos dominate the market, many are buying land in Pattaya and building houses.

Thai law restricts land ownership to Thai nationals only. Condo buildings can be 49 per cent foreigner owned, but those wishing to develop or buy private villas and houses in Pattaya need to opt for a proxy ownership structure in which the land is leased for 30 years (renewable twice more). Some foreigners can have access to buying land in Pattaya through their Thai spouses or business partners, who become the legal owners of the title deeds. By this arrangement it is therefore important to draw up legally binding agreements regarding sale of the property, since any sale will immediately nullify the lease agreement unless stipulated otherwise. A trustworthy partner, and backup, is essential here in Thailand since the law is not very supportive of foreigners who have been swindled, or dispute ownership.

Despite this local real estate agents have plenty of land and houses for sale in Pattaya on their books, ranging from expensive beachfront land (rare) with commercial value, to remoter private plots for building your own house, and the popular Estate developments which the Thai middle class aspire to belonging to. These can present a good controlled environment free of noise, stench, intruders, dogs and undesirable neighbours. Therefore these are becoming popular with foreigners buying houses in Pattaya. Furthermore they present a good investment to those foreigners who have Thai partners, since they are easy to rent out to foreigners who don’t want to live in a condo, and cannot buy houses themselves.

Prices when buying land in Pattaya vary widely. Land area is measured in wa (4m²) with 400 wa in a rai (1600m² or 0.42 acres), prices for land in residential areas are from 10,000 baht per wa up to 25,000 in expensive and successful estate projects, and as much as 50,000 per wa in commercial districts. Prices are also affected by the class of land title deed, with Nor Sor 3 Gor being the most accurate and modern (using GPS), followed by the older Nor Sor 3. Occasionally when buying land in Pattaya you come across cheap land which only has chanote deeds (a registered historic claim to the land subject to dispute or bribery).

You can get a nice size house for your money here

When buying houses in Pattaya the prices vary even more depending on the size of the house and land, locations, whether it’s in a prestigious housing estate, age and quality of materials, maturity of the garden and general design (noting some house on the market appeal to Thai tastes and are less desirable to foreigners). In Pattaya a modest three bed 250m² house on less than 100 wa, in decent area, will cost upwards of 5 million baht (US$150,000), with prices closer to 10 million for a pool, quality fittings and decent sized garden. Under economic recessionary pressures, some bargains do come onto the market if you keep your ears to the ground, since many locals are imprudent with their re-mortgaging.

The residential market is wide in Pattaya and offers an impressive range of luxury options with modern houses offering beautiful facilities and stunning gardens. Many Pattaya houses are available, whether new or old. The old ones can be a good option and they will allow the owner to renovate it as they like. Many properties are built within compounds (mooban), gated communities with uniformed guards at the entrance and usually amenities such as swimming pool and health centre. They are inhabited by the Thai middle and upper class, together with foreigners.

Knowing where to start looking relies on a local property agent. There are many online property agencies to immediately browse, however a knowledge of the different residential neighbourhoods is essential, some are ‘charmingly’ Thai (meaning you need tolerance for noisy neighbours etc), some down market and some in busy areas or far from the popular amenities and beaches. It’s worth getting to know several agencies before trusting one to show you decent properties without wasting your time.