Ocean Property believes the new COVID-19 outbreak will end quickly and will not affect the real estate market in 2021, especially in certain zones. The company is ready to continue expanding into provincial markets, focusing on two potential locations: "Pattaya and Khon Kaen," which have shown sales growth amid the COVID-19 crisis. Pattaya, in particular, has benefited from the trend of purchasing second homes, boosting sales of Ocean Portofino in Jomtien-Pattaya to nearly 350 million baht. The company plans to invest 200 million baht to renovate the Ocean Marina Yacht Club significantly, expected to be completed in the first half of 2021.

 

            Mr. Napong Priphanpachonphisut, Managing Director of Ocean Property Co., Ltd., a comprehensive quality real estate developer, revealed the direction and investment opportunities in provincial real estate for 2021, indicating a positive growth trend. Although not explosive, there is continuous sales due to clear demand for actual living, without the high land price constraints seen in Bangkok. This is especially true in provinces with strong economic fundamentals, indicating urban growth from various angles, such as being a province with multiple income sources (agriculture, industry, tourism, etc.), having an airport, and educational institutions.

 

“Next year, there will be positive factors such as successful vaccine research. Even though there is currently a new COVID-19 outbreak, I believe the government can control it faster than before, likely within a month. All sectors have gained experience and learned how to protect themselves well. Right now, everyone may be panicking, and all parties need to cooperate to enhance preventive measures once again. I see this affecting only the short term and unlikely to impact the investment atmosphere in the real estate market in the first quarter,” Mr. Napong stated.

 

Thus, in 2021, Ocean Property will continue to pursue its strategy of investing in provincial real estate, focusing on meeting the demand for residential purchases or real demand, particularly in two key economic areas where the company has already invested: Khon Kaen and Pattaya. These areas still show business opportunities and growth, even amid the previous COVID-19 outbreak. Khon Kaen, as the economic center of the Northeast, serves as a medical hub, attracting people from neighboring provinces, resulting in continuous housing demand.

 

The purchasing power index in Khon Kaen is high, with the highest average income per capita in the Northeast at 122,950 baht/person/year. This indicates that Khon Kaen has purchasing power, as seen from the sales of the "Ocean Grand Residence Mittraphap - Khon Kaen" project, valued at 400 million baht. It is a low-rise condominium of 8 stories on a land area of 1 rai and 266 square wah, with 236 residential units starting at 1.29 million baht. After the lockdown was eased, the project has averaged over 10 units sold per month, achieving its sales target, with 40% sold to date.

 

Meanwhile, Pattaya is one of the main locations for project development, driven significantly by the Eastern Economic Corridor (EEC) policy. The EEC will rapidly transform Pattaya physically, with investments flowing in, changing the economic structure towards a more stable seaside city. The planned high-speed train station in Pattaya, developed in a Transit-Oriented Development (TOD) format, will enhance Pattaya's potential.

 

“In 2020, despite the COVID-19 situation, people began to realize the importance of having a second home for living and relaxation during unsafe times. This has increased the demand for second homes or vacation homes in tourist areas, especially Pattaya, as reflected in the sales of the "Ocean Portofino Jomtien-Pattaya" project. Sales increased continuously, with over 350 million baht generated in 2020. The customer base is not limited to wealthy businesspeople but includes new young entrepreneurs and Chinese customers living and doing business in Thailand, showing increased interest in the project. It is expected that the remaining ready-to-move-in units of the Ocean Portofino Jomtien-Pattaya project, currently less than 10% of the total 268 units, will be sold by next year, prompting the company to consider investing in new projects, as there is still nearly 100 rai of land available for development,” he added.

 

Additionally, Ocean Property plans to invest approximately 200 million baht to renovate the Ocean Marina Yacht Club significantly, expected to be completed in the first half of 2021.

 

“I anticipate that in the next 2-3 years, the real estate and tourism sectors in Pattaya will become vibrant again, as Pattaya has many investment projects, partly due to the EEC initiative supported by the government, which invests in infrastructure projects such as the high-speed train connecting three airports (Don Mueang, Suvarnabhumi, U-Tapao),” Mr. Napong concluded.