Sincere Group launches first residential project in Hua Hin

Chayaphon Hunrungroj, managing director of Sincere VP Co, said X2-Hua Hin Oasis would consist of 23 pool villas and that prices would range from Bt14 million to Bt17 million per unit.
The company had not planned to launch the first phase until next April, but it has already secured sales of eight units. The second phase will go on sale in the final quarter of next year.
He said the cost of property in Hua Hin was usually lower than in other major destinations such as Phuket, Koh Samui and Chiang Mai, mainly because of lower land prices, but return on investment (ROI) was higher because average room rates at hotels in Hua Hin are higher.
A survey by the group found that hotel room rates in Pattaya were 20 per cent lower than in Hua Hin on average, and in Chiang Mai rooms could be had for only half the cost of equivalent Hua Hin units.
“The strong point for Hua Hin is cheaper investment. Hua Hin is the No 1 family destination, which means the tourism business is not seasonal like in other cities. More than 60 per cent of its tourists are [Thais], and they travel to Hua Hin throughout the year,” he said.
Sincere VP has signed a six-year deal with Bespoke Hospitality Management Asia to manage the new project. BHMA currently manages several hotel brands including X2, Away, Le Bayburi and Golden Tulip.
“The management company will [rent] villas to guests or tourists at more than Bt10,000 per night. It aims for an average 49-per-cent occupancy rate per year. If it achieves this target, owners will earn Bt1.6 million to Bt1.7 million per year, enjoying ROI of 11-12 per cent, which is higher than in Bangkok and the overall rental market, which is falling to 5.4-5.7 per cent,” he said.
Chayaphon said Sincere Group planned to launch two new projects in Bangkok before the end of this year. The first will be a luxury detached-housing project on Phaholyothin Road. The first phase of this project will be worth Bt180 million and the second phase Bt400 million.
The second project will be a commercial townhouse development on Rama IX Road. The group expects to invest Bt250 million in this project.
“Over the years, we have focused on lower-segment projects, but this year will have moved up to the luxury level. The group aims for total sales of Bt1.5 billion this year,” he said.