Following a study conducted by Knight Frank Thailand, it was found that between January and September, 1,041 new condominium units were added to the market -- an increase of 164 per cent compared to the same period last year.
The new supply is entirely located in the heart of Hua Hin, and has been developed by major developers from Bangkok, Phanom said.
Of the new projects since 2012, only 35 per cent are situated on the beach or not too far from the coastline.
Lately, developers have progressively turned their attention to developing projects in the city, focusing on locational convenience as their selling point. They have also positioned the projects to cater to buyer needs with focus on unit size, unit configuration and common spaces, Phanom said.
In the first nine months of the year, the average sales rate was approximately 75 per cent.
It is expected that supply will increase by about 200 to 300 units in the last quarter of the year, which is expected to help maintain the market balance after the recent recovery from the slowdown, Phanom added.