A slowdown in the resort markets of Hua Hin and Cha Am is giving prospective property buyers a significant opportunity to bargain, according to a newly-published research report.
In its Hua Hin, Cha Am and Pranburi Residential Report for 2013 H2, Colliers International Thailand also predicted that the inland area in Hua Hin, adjacent to Petchkasem Road, will become more popular this year for high-rise condominium project buyers.
The report revealed that during 2012 and 2013, many of the condominium projects launched in the area were in the Hua Hin Inland market. Most of the development focused on mid-range buyers with pre sale prices lower than THB2 million per unit and the average prices not more than THB4 million per unit.
As the area along the coast is almost fully occupied, land prices are also extremely high compared to the western side of Phetkasem Road, Colliers reported. New beachfront condominium projects on the Cha Am and Hua Hin coasts were launched with higher selling unit number at each project than in the past.
Most condominium buyers are Thais, including those from Bangkok, as well as people who came to work in the area, while the majority of houses that were sold in 2013 were located in the Hua Hin Inland and Pranburi areas. The selling prices were not more than THB10 million per unit, and most buyers in this sector were retired foreigners.
The report said: “Hua Hin is the one of 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 Pranburi, are the best places for a second home.
“Many Thais bought houses or condominium units in the area for their weekend home and the number will continue to grow in 2014 and the future. Because of the large available supply still in the market, buyers may take more time to compare before choosing a suitable residential unit.”
Colliers also noted that the ongoing political protests in Bangkok are also affecting the property market in some resort destinations close to Bangkok.
“Because the political situation has directly impacted the confidence of foreign and Thai buyers, developers have postponed the launch of new projects and have cancelled all marketing activities, affecting the mood of buyers.”
Read the full Colliers International research report HERE.
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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