By Andrew Batt:
The resort residential property markets of Cha Am, Hua Hin and Pranburi showed good signs of growth during the first half of 2012, according to a new report from Colliers International Thailand.
Surachet Kongcheep, Senior Manager of Colliers International Thailand’s Research Department, reported: “The total supply of condominium units is approximately 7,980, with around 47 percent in the Hua Hin coastal area. Many developers were focusing more on the Cha Am area in 2011 and 2012. Some huge projects were launched so in the next two to three years, the Cha Am area will represent the biggest share of the condominium market.
He added that the limited availability of land in the Hua Hin area is the major obstacle to condominium development. Most luxury condominium projects were located in Hua Hin due to the high land prices which make it unsuitable for mass market developments.
He said: “The total number of newly-launched units in the first half of 2012 was approximately 3,060. The Cha Am area was still the most popular for the condominium market, continuing from last year. This was due to approximately 1,422 units were launched in the Cha Am area during the first half of 2012 – or around 46 percent of the total units launched in H1 2012.”
Discussing the issue of take-up rates, he continued: “The average take-up rate of all locations at the end of H1 2012 was approximately 61 percent, which is similar to that in the second half of 2011 despite more than 3,000 units were launched in the first half of 2012.“
He added: “The take-up rate in the Hua Hin inland area was significantly higher than other areas at more than 74 percent, compared to 62 percent for the Pranburi area. This was due to the popularity of two projects from Sansiri which were almost sold out after the official launch in April 2012.”
Colliers noted that some listed Thai property developers companies are already active in the Cha Am, Hua Hin and Pranburi markets. The major developer is Sansiri with more than 10 projects. Charn Issara has launched three projects; Major Development two; Land & Houses one project; while SC Asset has just launched its first project in the first half of 2012. Other big name developers also plan to launch their first condominium projects in the area.
Sunchai Kooakachai, Senior Manager for Colliers’ Hua Hin office, said: “The average selling price in the Hua Hin coastal area is the highest,at more than THB 73,500 per sqm, which is similar to the second half of 2011. Hua Hin city is every weekend. Many Thais preferred to stay in the Cha Am area to escape from the traffic jams, and as such Cha Am has become a new location for second homes as it is more peaceful and tranquil. During the first six months of 2012 we have received enquiries from our neighbouring countries, as well as from China and Singapore. Foreigners from Western countries have been absent from the market for more than a year.”
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