By Nikki De Guzman:
Condominium supply in Hua Hin are comprised of two- to three-bedroom units during the past decade while majority of the existing units now are one-bedders priced under THB2 million, according to the latest report from Knight Frank Chartered (Thailand).
“Most of the buyers who purchased Hua Hin condominiums use them as holiday homes, rather than for investment purposes,” said Frank Khan, Knight Frank Thailand’s Executive Director and Head of Residential Department.
However, condo units were bought to generate rental income as there are not many hotels in Hua Hin. Consequently, the rental market is flourishing due to the influx of foreigners including Russian and Scandinavian tourists who rent apartments for three to six months.
“They prefer one- or two-bedroom apartments with full recreational facilities such as swimming pools, beach access, and tennis courts,” noted Khan.
The supply of condo units in Hua Hin rose 35.2 percent to 18,102 in 2012 compared to the previous year. Approximately 4,709 units across 15 new condo projects were unveiled last year where 3,255 of these units entered the market in the first half, while the other 1,454 units were offered in latter half.
Notably, this data only include condo supply in Khao Tao, Khao Takiab, Hua Hin, Inland Areas and Cha-am. The figure is exclusive of the supply in the Pranburi area.
In terms of demand, 2,879 condo units were sold in 2012, up from 1,344 in the previous year and 1,076 in 2010. Even so, due to the entry of 6,000 units, the take-up rate fell from 75 percent in 2010 to 45 percent in 2011.
However, take-up rate rebounded to 49 percent last year, with total demand reaching about 8,906 units that year.
Thais accounted for 75 percent of the market, while the remaining 25 percent were foreign retirees and expatriates including Germans, Russians and Scandinavians.
According to the report, Hua Hin’s condominium market is predicted to post strong growth as SET-listed property developers and other major firms from Bangkok roll out new projects this year.
Nikki De Guzman, Junior Reporter at PropertyGuru, wrote this story. To contact her about this or other stories email nikki@allproperty.com.sg
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