Danish Real Estate: Rayong Market Picking Up

For now,
the quiet seaside town of Rayong
is probably known as much, perhaps not always fairly, for pollution as it is
for property. However, its flourishing real estate market is starting to grab
investors’ attention, writes the Thai newspaper Bangkok Post.
    One of the
winners in this trend is Jens Brochner Nielsen, CEO of D2 Real Estate, who says
demand for such properties now far outstrips supply.
    ”Over the
last two years we have sold more than 100 units in the V.I.P. Condominium, and
there is nothing for sale now,” he said. ”It’s true that owners will sell in
the resale market but there are no NPLs anymore”.
    He says the
development’s popularity reflects how far the popular perception of Rayong
differs from the reality. In his view, pollution from the Map Ta Phut
industrial estate is less pervasive than commonly believed. The province’s
eastern side, he notes, is mainly agricultural and ”absolutely clean”.
    Villas now
being completed by D2 Real Estate are expected to appeal to Europeans.
    Even the
seabed of Mae Ram Phueng Beach, where a handful of high-rise
condominiums are located, is protected and dirty water cannot be discharged
there.
    But also
key to Rayong’s appeal is a price point that remains low compared to other
resorts _ despite the rises of the last three years.
    ”Prices
have definitely gone up in Rayong but they have not reached the top yet and
even if we go into a recession _ when prices generally drop in Thailand _ in
Rayong they will stay up,” said Mr Nielsen.
    He has
purchased part of an NPL villa estate close to the V.I.P. Condominium. D2 Real
Estate has taken 35 rai, which it has divided into plots of 100 to 250 square
wah for sale starting at 1.5 million baht _ or 3.5 million baht with a 105 sq m
house.
    For Mr
Nielsen, this kind of property is ideal for many overseas buyers now being
drawn to Rayong. ”We think Europeans are rich but they’re not full of cash,”
he said. ”This puts a limitation on the price when we talk about the seaside. My
estimation is that more than 90% want a condo costing less than four million
baht.”
    He
describes his typical buyer as in his fifties, planning for retirement, and
generally looking for a 60 to 90 sq m unit with a separate bedroom.
He says D2
is now selling mainly to Finnish and Swedish buyers, especially Swedes,
who have a community on Mae Pim beach. The Americans who once dominated sales
have disappeared, their place now being taken in part by Canadians.
    But all
nationalities can appreciate Rayong’s 50% discount on the property prices of
Pattaya or Hua Hin.
    ”It is
still possible to find property between one and four million baht in good
standard with a sea view_ this is what they want,” said Mr Nielsen.

 

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