• 
• 

Published on November 23, 2007

Managing director Duangjai Kraus said the price escalation had particularly affected land plots close to Hua Hin's long beach, where asking prices were currently up to Bt50 million per rai - a 50-per-cent increase over those of two years ago. There are 6.25 rai in one hectare.

Land plots on the high hinterland behind the city have also risen in price, from between Bt800,000 and Bt1 million per rai to between Bt3 million and Bt5 million per rai.

The increases have followed strong demand for residential properties in Hua Hin, in Prachuap Khiri Khan province, particularly from foreigners with high purchasing power who want a second home for holidays. Many buyers come from Europe and the Middle East.

Demand in the area has now shifted from the low-to-middle-income market to the middle-to-upper market, with residential prices ranging from Bt10 million to Bt50 million per unit, Duangjai said. This trend is expected to continue next year.

"Most foreigners who buy residences in Hua Hin will buy a house to be a second home for vacations and as an investment, with returns from rental fees. As a result, a number of property developers in Hua Hin now offer property management and guarantee returns on investment of between 6 and 8 per cent per year. This is why the property business in Hua Hin has strong growth, and the growth will continue next year," Duangjai said.

Buoyed by the level of demand, Double 8 Realty plans to spend Bt500,000 to stage what it calls The First Hua Hin Exclusive Property Show on December 8 and 9 at Sofitel Centara Spa and Resort. The show will introduce 10 residential projects, collectively worth Bt4.55 billion, for which Double 8 Realty is acting as sales agent.

The projects are the AKA Resort Guti Villas, worth Bt400 million; the Address Hua Hin, worth Bt400 million; Panorama Pool Villas, worth Bt800 million, Hua Hin Garden worth Bt400 million, Black Mountain Golf Course worth Bt800 million; Hua Hin Boulevard Condominium, worth Bt400 million; Pranalux, worth Bt400 million; Hua Hin Sea-View Villa, worth Bt250 million; Hua Hin Country Club, worth Bt300 million; and Frangipani, worth Bt400 million.

The company expects as many as 100 visitors and sales worth up to Bt100 million from the two-day event. About 60 per cent of sales are expected to come from local buyers and the rest from foreigners staying in Bangkok who want to buy a second home.

Double 8 Realty believes it will achieve sales totalling Bt400 million by the end of this year - double the target it set for itself earlier in the year. It generates income equal to 5 per cent of sales value, Duangjai said.

The company expects the 10 projects for which it is sales agent to be sold out some time in 2009.

 Somluck Srimalee

 The Nation