The Hua Hin condominium market is recovering from a less than stellar start to the year, showing a slight increase in absorption rate with sea view units commanding the most money, according to research from Knight Frank Thailand. The consultancy also noted that new supply will likely be limited during the remainder of the year.
Only two new projects were launched in the first half of 2016 with both developments being found in the Cha-am area. In addition to this, two projects were halted because of financial problems and political uncertainties. The target clients for both projects were foreigners. The research also noted that projects targeting daily renters have also become scarce.
“We found that some projects with units previously rented out as hotel rooms on a daily rate have either decreased the number of such units or have destined the units for sale. This is in response to negative media attention and the crackdown of authorities on such developers,” Risinee Sarikaputra, Research & Consultancy Director at Knight Frank Thailand, said.
The take-up rate of Hua Hin condominiums is 78 percent, which is near record levels for the coastal city. Take up rose by four percent between the start of 2015 and the end of the first half of 2016. Knight Frank research found that the highest sold rate for Hua Hin historically was 79 percent, which occurred in 2009 and 2010.
The positive performance and surge in demand during the first half of this year highlights the fact that demand in Hua Hin is finally catching up to the supply in the market. One interesting trend Knight Frank found was that some condo projects near Stamford University and the Aviation Training Center are being rented by students attending one of the two schools. This has provided another investment opportunity for those interested in buying a Hua Hin condominium. The market had previously been limited to vacation renters and weekend stays.
Image: Khao Takiab area in Hua Hin
