Slower growth seen in condo market in Hua Hin, nearby areas
The condominium market in Cha-am, Hua Hin and Pran Buri so far this year has grown more slowly than in 2012, according to the latest research from Colliers International Thailand.
However, the total number of units launched in the first half of 2013 is still higher than corresponding totals in the same periods of 2005 through 2011.
Surachet Kongcheep, associate director of research for Colliers International Thailand, said fewer new condominiums were launched in the area around Hua Hin in the first half of this year than the same period of last year. This was because many condos were still available for sale, so some developers postponed the launches of new projects.
Nearly 2,100 units were launched in the first half, about 980 of them in the Hua Hin coastal area.
“The total current supply is approximately 9,060 units, with around 47 per cent in the Hua Hin coastal area,” Surachet said.
“Many developers focused more on the Cha-am area in 2011 and 2012 and some huge projects were launched there, so in the next two to three years, that area will have the biggest share of the condominium market. The limited land availability in the Hua Hin area is the major obstacle to condominium development there.”
Cha-am and Hua Hin are becoming the most favoured locations for a second home, especially for people from Bangkok, because of their proximity to the capital.
In addition, many supporting facilities have been added to the area during the past few years, such as community malls, golf courses and water parks.
“The average take-up rate at the end of the first half of this year was approximately 69 per cent, higher than in the previous year,” he said. “Some new condominium projects saw a high take-up rate, especially those by listed developers. Other projects launched new marketing campaigns and attracted many clients.”
The average price of newly launched units in the first half of 2013 is about Bt69,000 per square metre, similar to the average price in the second half of last year.
“The average price in the Hua Hin coastal area is the highest, at about Bt75,000 per square metre, similar to the second half of 2012.
The average price of some completed projects in the coastal area is higher than Bt130,000 per square metre.
“Many condominium projects with lower prices were launched during the past two years in the Cha-am and Hua Hin inland areas, and the average prices in all locations are still similar to last year,” Surachet said.
“Hua Hin is one of most fashionable locations for Thais who need to escape from the hustle and bustle of Bangkok, so Hua Hin and surrounding areas like Cha-am and Pran Buri are the best places for a second home.
“Many Thais bought houses or condominiums in the area for their weekend homes and the number will continue to grow in the second half of this year and the future.”
