The Investment

The homes at Krihaat Lakeside have been planned to give their owners decades of service as beautiful and functional residences. A home is also an investment and we are committed to sustaining and increasing the market value of its properties.

Thailand is a highly attractive site for medium to long term property investment. The Thai economy has generally been overlooked, but has made a quiet and very effective recovery from the crisis of the late 1990s. Growth rates have been outstanding and foreign investment has surged, driven by Thailand's efficiency, location, and pro-business policies. Thailand now stands on the verge of full transition into newly industrialized status. This transition has been followed in other Asian nations by rapid escalation in property prices, and Thailand offers not only a dynamic economy, but the added attraction of a tropical climate with beautiful seashore and a dynamic tourism industry with full government support.

Pattaya

Pattaya's unique position makes property investment in the region particularly attractive. The area suffered a downturn in the mid 1990s, leading to erosion of property values, which was compounded by the Asian crisis. Pattaya has fully recovered: massive infrastructure spending, strict environmental regulation, and a surge in local and overseas private investment have generated a new tourism peak. Tourist arrivals in Pattaya have climbed by almost 40% from the 4.1 million recorded in 2002 to the 6.85 million (based on 2007 figures through June) projected for 2007, an average annual growth rate of 8% or about 500,000 visitors per year. A 13% surge in 2006 catapulted Pattaya past Hua Hin as Thailand’s most popular resort destination. The momentum carried over into 2007 when arrivals jumped another 11% in spite of sluggish arrival statistics experienced throughout the rest of Thailand.

Pattaya’s tourism industry has also shown a qualitative shift, with a marked trend toward upscale tourists seeking 5-star accommodation and services. This trend has drawn increased investment in this niche, which has in turn drawn further arrivals. New hotel projects will result in a 50% increase in five-star room inventory over the next two to three years. The last quarter of 2007 saw the opening of Amari’s Orchid Resort & Tower in North Pattaya, while Centara, Hilton, Mövenpick, InterContinental and Le Méridien all plan to open upscale hotels and resorts between 2008 and

2010. Increasing levels of high-end tourism has traditionally been followed by increasing demand for high-end retirement and second homes.

Pattaya and the surrounding eastern seaboard area have developed a diversified economy with a strong manufacturing and trading base, attracting substantial foreign investment and drawing a large number of expatriate managers and wealthy Thais. The region’s GDP is growing at 12% per year, making it Thailand’s fastest-growing region.

Pattaya’s rapid development as a luxury destination and an economic powerhouse has driven an extremely rapid surge in the value of high-end condominiums. Raimon Land’s Northshore condo launched in 2004 and sold out before opening in 2006. By 2005, resales were bringing in returns of over 30% with rates jumping to 40-50% the following year. Other high-end projects have seen similar escalation in value. These rapid returns have driven a wave of investment in new condo building: building permits issued for high rise residential units reached 21% of all permits issued in 2006, up from 7% in 2004. 2,268 new units were brought onto the market in the eastern seaboard region in 2007, with Pattaya receiving 33% of these and nearby Jomtien showing a strong surge of interest at 26%.

Despite the surge in condominium prices, the value of prime residential land has remained extremely cheap by world standards. Combined with the availability of low-cost high-quality construction, this makes it possible to sell world-class homes in prime locations at very reasonable prices. Ideal location, strong national and local growth, and the intrinsic value of beautifully built and landscaped residences makes it almost certain that the value of these properties will rise rapidly. The number of new condo units coming onto the market makes it unlikely that values will see the same level of appreciation that they have in the past. Luxury residences in prime locations with large lots and first class facilities remain in extremely short supply, and are likely to see the same level of value appreciation that condominium prices have over the last few years.

Krihaat Lakeside operates in conjunction with Orientalis Island (Thailand) Co. Ltd., a Thai property development and management company, in a structure designed to comply with all relevant Thai laws while allowing property buyers of all nationalities to hold fully secured leasehold titles to their purchases.