The State of the International Luxury Real Estate Market

Christie’s International Real Estate, share the key insights from their September 2011 State of the International Luxury Real Estate Market Report

According to Christie’s, sellers worldwide are adapting to the new reality in luxury housing and slowly accepting that their residence is not going to command the same price that it might have in 2007. This is resulted in an increase in market activity as well as optimism, though the recent volatility in global economies has tempered slightly the enthusiasm initially reported in the first half of the year.

More than 67 percent of those surveyed -129 brokerages in the Christie’s International Real Estate network – confirmed their markets were more active through the first seven months of the year, when compared to 2010, despite many acknowledging that the increases were modest. Only 12.5 percent reported less activity in a year-on-year comparison. The latter were primarily from countries with troubled economies, such as Ireland and Greece.

About Pattaya

Pattaya is Thailand’s largest resort town and is a modern and ever-expanding city. Its location only two hours from Bangkok on the eastern seaboard makes it a popular holiday destination for both foreign and Thai visitors. Pattaya’s coastal position in central Thailand means it experiences no real extremes of heat or cold, making it an all-year-round destination.
Over a third of the 12 million foreign visitors to Thailand come to Pattaya, some for a day or two, and some for several weeks. There is a large ex-pat community who come from all over the world, while Thais, particularly Bangkok residents with second homes here, visit frequently. International conferences and sports competitions also feature highly in the day-to-day life of the city.
Pattaya Beach, a long but narrow crescent beach, is a central feature of the city, with a promenade running its length and the main locus of activity is centered among the lanes that run from here into the city’s main street – Sukhumvit road. Modern hotels compete with restaurants, shops, bars and mobile food stalls for space in this busy city, while the congested traffic rivals Bangkok for its speed, diversity and danger. One kilometer to the south, Jomtien provides a long clean beach backed by modern hotels and condos, while to the north smaller beaches and a quieter atmosphere prevails in the exclusive suburb of Naklua.
However this city of multi-cultural visitors remains quintessentially Thai, and although the convenience foods of the West are readily accessible, the Thai culture is everywhere and most visitors embrace the easy-going way of life readily. Over 99 per cent of people who live and work here are Thai and even a couple of blocks away from the beach the local culture takes over from the holiday atmosphere by the sea. Despite this, the ex-pat community here is a perhaps the least assimilated of all the foreign communities in Thailand, and you’re more likely to feel like you’re in Tenerife than Thailand, with all the footie on TV, English style pubs and nary a word of Thai spoken in the many bars that service the full-time early retirees who favor this atmosphere.
Pattaya offers a wide range of activities, sports and pastimes to please all tastes and pockets, ranging from diving with the well know Mermaid’s Dive Center and golf to swimming and shopping, relaxing on the beach to bungee jumping, motor sports to real Thai massage and spas. The nightlife is legendary, with several thousand bars, restaurants, like The Captain’s Corner’s “Eat all you can nightly buffet, clubs and go go bars to choose from, all located conveniently within a large area. It has large areas solely set aside for go go bars and the rules are some of the most relaxed of all in the Kingdom.
The city itself was the first Thai resort to gain popularity with international visitors when it filled up with American GIs who were sent here for R&R during the Vietnam war, disembarking by boat or at the busy U-Tapao airfield near Sattahip to the south. As a result, the city soon gained notoriety for its prostitutes and to this day attracts plenty of young women (many from the poor Isaan region) to earn a living here, entertaining lonely visiting men. As a result, some areas of the city are rather overwhelming in this respect, but it is one of the city’s chief attractions for some.
Rather than seeing itself as sleazy, Pattaya prefers to be recognized as a vibrant and fun break from Bangkok with a good tourist infrastructure, plenty of entertainment options, a healthy trade in budget package tourism and a thriving property market buoyed by the massive industrial development (with foreign input) that is occurring on this part of the eastern seaboard. Pattaya has its naughty districts, but it’s all fairly safe and harmless, and the city still manages to pass off as a family destination, boasting amusement and water parks, nice beaches and plenty of shopping and weekend seaside pads for ‘cooped up’ Bangkokians.
The main tourist season in Pattaya is between November and March when the weather is pleasantly hot and dry (low 30s Celsius in the day and 20s at night). April/June can get very hot and the rainy season usually lasts from July to October although it usually only rains for an hour at a time.

Ultra-Luxury Cars

According to R.L. Polk and Co., the "super luxury" segment (cars costing more than $100,000) is one of only two to show market growth over the last five years. R.L. Polk and Company is a global automotive information and marketing firm that provides solutions to automotive and related industries.
"The popularity of super luxury sedans among affluent American consumers has opened the door for automakers to roll out a whole new generation of innovative, amenity-laden models," said Eric Papacek, analytic consultant for Polk. "New models and concepts recently announced by Bentley, Mercedes-Benz, Rolls-Royce and Cadillac are clear signs that the uber car has returned to the American auto scene."
Photo Gallery: Ultra-Luxury Cars
Highlights of the Ultra-Luxury Lineup
At the top of the luxury car market are two models that arrived on American shores in the last few years—the Rolls-Royce Phantom and the Maybach 57/62.
Five years ago BMW AG became the owner of the prestigious Rolls-Royce name, and in January 2003 the new owners showed off a new car at the North American International Auto Show in Detroit. The Phantom has a design instantly recognizable as a Rolls-Royce, with only the finest materials used throughout the vehicle. As many as 16 hides of leather go into each Phantom, and the automaker claims it to be the softest in the industry. Base price for a new Phantom: around $330,000.
Not to be outdone, Mercedes-Benz has brought back the Maybach name and put it on a set of ultra-luxury sedans. Named the 57 and 62 (based on vehicle length: 5.7 meters and 6.2 meters, respectively), the Maybach is quite different from the Rolls. Styling is more modern and the interior feels more high-tech. The 57 is considered a driver's car, while the 62 would likely be chauffeur-driven, referred to by the automaker as a "business jet on wheels." Featuring power-closing rear doors, a 600-watt audio system and reclining rear seats with power footrests, the Maybach 62 goes for around $375,000.
The Bentley brand stakes a time-honored claim in the ultra-luxury class. The sleek Continental GT is one of the fastest 4-seat coupes available in the world, boasting a 552 horsepower twin-turbo W12 engine that powers all four wheels. Not only is it the first all-wheel-drive Bentley, the Continental GT also is the least expensive, with a starting price at a mere $159,900. Joining the Continental GT coupe last year was the 4-door Flying Spur. The Flying Spur shares styling with its coupe sibling, as well as the powerful W12 engine and all-wheel drive.
The ultra-luxury sedan from Bentley—the Arnage—received a freshened look and a number of enhancements last year. The front fascia now features round headlights and revised hoodlines, both of which bring the sedan's looks in line with the new Continental GT. Inside, the Arnage gets a new dashboard top, fresh instruments and a new DVD satellite navigation unit. The already outstanding ride quality and handling have been enhanced with a revised rear suspension. The 2005 Arnage is available in R and T trims, as well as the long-wheelbase RL.
Aston Martin rides high with the all-new DB9. The two-plus-two sports car offered in both Coupe and Volante (convertible) versions replaced the DB7 for the 2004 model year. The hand-built DB9's 450-horsepower 6.0-liter V12 engine is available with either a 6-speed manual or a 6-speed automatic transmission. Aston Martin is also considering a sleek 4-door sedan based on the DB9. A concept 4-door called the Rapide was shown at January's North American International Auto Show.

Mercedes-Benz and BMW both offer high-end sedans and convertibles that break the $100,000 barrier.
The Mercedes-Benz S-Class, CL-Class coupe and SL-Class roadster are all lavishly equipped, but it's their powerplants that distinguish them from their lesser-priced siblings. The S55, CL55 and SL55 all sport supercharged V8 engines producing an impressive 493 horsepower. The S600, CL600 and SL600 get the same power output from a twin-turbo V12 under the hood. Look for details of an all-new S-Class coming soon.
BMW recently joined this elite group with its luxury sedan. The top-end of the 7-series lineup, the 760 (and long-wheelbase 760Li) offers an expansive rear seating area, impressive handling and excellent performance from its 438-horsepower V12 engine.