The Hua Hin real estate market skyrocketed in 2012 with developers releasing over 10,000 units onto the market. In turn, land prices went up dramatically as developers tried to secure prime properties in the region. This caused a significant oversupply to build up and Hua Hin has only now begun to recover from this, according to local media reports.
The recovery was slowed due to Thailand’s economic slowdown and political uncertainty, but most of supply has now been absorbed. This has made room for new developments in Hua Hin, however, finding a place for these could be problematic, reports The Nation. A lot of prime beachfront land in Hua Hin has already been developed making it impossible build in these popular areas.
Some developers decided to build projects in nearby beach locations with Khao Tao and Cha-am the preferred destinations. Both of these locations suffer from a lack of retail facilities and amenities which makes them less desirable in the eyes of buyers. There is also a lack of product innovation in Hua Hin which is also hurting demand.
One issue preventing residential real estate innovation is the regulations in the region that force developers to design projects that look and feel similar to one another. While there has been some new developments that have found ways around this, most projects fail in this regard.
The Hua Hin real estate market does face a number of challenges, but the situation is not as bad as some experts have predicted, notes the media report. The area has strong fundamentals in place and is still a leading destination for Bangkokians looking for a weekend getaway. Future infrastructure developments, such as the high speed train and road improvements connecting the 2 cities, will lead to even more growth opportunities for the real estate market, but developers will need to offer innovative products that have unique selling points.
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