Province is seeing strong demand from Scandinavian home-buyers. Land prices in Rayong province, especially at Mae Pim beach, have shot up 60 per cent from an average of Bt8 million per rai in the last two years to Bt13 million per rai, given the strong demand for residential projects from foreigners.

Vilailux Development’s general manager Teeravat Pipatdhitakul said demand for residential projects in Rayong province, especially for Mae Pim beach locales, has risen since last year due to foreign as well as domestic investors showing interest in buying second homes.

Scandinavian investors have shown particular interest in the Rayong province as have Britons, Germans and Americans.

Given such strong demand for residential projects, six property developers – domestic as well as from overseas – have launched their residential projects on Mae Pim beach and Ban Pae with a cumulative worth of about Bt10 billion. They include

Glen Asia, developer of Tropical Beach Resort and Residence at Ban Pae – a project worth about Bt3 billion; Logan Residence Development with Seaview Condominium on Mae Pim beach; and Phupatara by Vilailux Development – a project worth Bt2.2 billion.

Other domestic companies are also developing residential projects worth about Bt2 billion.

According to research by Colliers International Thailand, Rayong is popular with foreign investors, especially Scandinavians.

As a result, a number of property developers from Scandinavian countries, especially Sweden, have invested in developing residential projects in the province.

The research shows that Scandinavian companies have established joint ventures in Rayong province. The cumulative registered capital of 39 such companies stands at Bt132.33 million. The highest registered capital comes from Norway at about Bt40.80 million.

The first project, launched by a Swedish investor back – initially intended as a member estate for retirees – paved the way for the Scandinavian property developers’ rapid expansion in Thailand.

Of units developed by Scandinavians all across Thailand, Rayong has seen the highest number with 809 residential units, followed by Hua Hin and Pattaya, with 468 and 259 units, respectively.

The strong demand for residential projects in Rayong has driven up resale prices 12 per cent to 20 per cent a year.

Teeravat said Vilailux was selling its residential projects at prices between Bt80,000 and Bt100,000 per square metre in October last year.

However, given the strong demand, the same locations now command prices between Bt90,000 and Bt120,000 per square metre.

“Prices for Rayong projects are expected to grow because prices here have always been lower than in Hua Hin and Pattaya. We believe that as developers invest in Rayong luxury-residential projects, this market will change middle to upper within the next two to three years,” Teeravat said.