The property market in the Gulf of Thailand town of Hua Hin is suffering from oversupply, according to a survey conducted by Knight Frank Thailand.
Managing Director Phanom Kanjanathiemthao told reporters that the Hua Hin property market, which consists mostly of Thai buyers, has seen a surge in supply during the past two years which has lead to a slowing and oversupply situation..
Some projects, he said, offer a large number of units, making the overall market stagnant. Competition may be fiercer, but at the same time it has become a buyers market.
Both Hua Hin and the nearby town of Cha-am have been affected by large development and this, he summarised, was the main reason supply had increased way beyond current demand levels.
He said that despite the oversupply, prices have not fallen because the Hua Hin condo market offers mostly new units, and developers cannot build if they have to lower their prices further.
He predicted that in the current political climate there are not likely to be many new project launches in the area.
Andrew Batt, International Group Editor of PropertyGuru Group,
wrote this story. To contact him about this or other stories email andrew@propertyguru.com.sg
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