Growth in condo demand continues in Hua Hin area

Real Estate February 27, 2014 00:00


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DEMAND for condominiums in Hua Hin, Cha-am and Pran Buri will continue to grow this year, largely driven by Thais buying |vacation homes, according to research by Colliers International Thailand.

“Hua Hin is one of the 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,” said Surachet Kongcheep, associate director of the firm’s research department. 
“Many Thais have bought weekend houses or condominium units in the area, and the number will continue to grow in 2014 and beyond. Because of the large supply still available, buyers may take more time to compare before choosing a suitable residential unit.” 
A survey by Colliers shows that nearly 2,740 condominium units were launched in the area last |year, with about 1,300 units in |the Hua Hin coast area. 
These numbers were lower than in 2012 because there were many unsold condominiums still available. 
In addition, the political problems in Bangkok in the last quarter of 2013, which are still continuing, were a major concern for all developers, so many of them postponed the launch of new projects until this year or until the political situation calms down, he said.
8,800 units due 
About 8,800 units are expected to be completed this year, with nearly 5,000 in the Cha-am area and about 1,880 in the Hua Hin coast area. 
The rest are in the Hua Hin inland and Pran Buri areas, with similar numbers. Many condominium projects cannot be completed by the expected date, however, because of a lack of construction workers. 
The average selling price of newly launched units last year was about Bt69,000 per square metre, similar to the average price in 2012. Although many projects were launched in 2013, most of them are more focused on the middle-income market, so average prices are not much different, Surachet said.
The research shows that in the last two years, many of the condominium projects launched were in the Hua Hin inland area. Most of the development focused on mid-range buyers with presale prices lower than Bt2 million per unit and the average price not over Bt4 million. 
As the area along the coast is almost fully occupied, land prices are extremely high compared to |the western side of Phetkasem Road. 
Most of the development focused on mid-range to high-end buyers with presale prices lower than Bt3 million for a one-bedroom unit and the average price not over Bt4 million. 
The presale price per two-bedroom unit was less than Bt6 million. 
Most condominium buyers are Thais, including those from Bangkok, as well as people who work in the area, Surachet said.