Residential property prices in the Cha Am, Hua Hin and Pranburi property markets are expected to grow by 8 percent this year, according to the latest research from Colliers International in its Research and Forecast report.
According to the real estate firm all property markets in Thailand have been affected by the political situation in the past year, but Cha Am, Hua Hin and Pranburi still continued to grow slightly during the crisis.
Most new condominium projects launched in the past year are more focused on below the high-end bracket. In addition, some new projects from listed developers that are expected to be launched in the near future are also targeting this group.
Thai buyers are the main target group, especially for the condominium market in the past one to two years; most are more focused on the coast area. Most Thai buyers are more interested in the condominium projects selling for less than THB4 million. This is because they are buying a second home and a condominium unit is the best choice.
Many foreign buyers in Cha Am, Hua Hin and Pranburi are from Europe, especially Scandinavia, Switzerland and the Netherlands. Most of them are focusing on housing projects in the Hua Hin inland area with one-storey detached houses with a swimming pool and small green area.
Many foreign developers are launching small projects and selling directly to foreign buyers with leasehold contracts and rental programmes.
The residential areas in Cha Am and Hua Hin have expanded further to the southern part of Hua Hin and to the west of Phetkasem Road during past few years. Some small roads that are planned for expansion are becoming the new hot locations for property development, such as Hua Hin soi 112 and Hin Lek Fai Sub-District, as the Department of Public Works and Town and Country Planning is planning to expand the old town to cover Hin Lek Fai Sub-District.
Colliers International expect new launches of at least two to three condominium projects the rest of the year, with most projects having an average selling price of betweenTHB1.5 million and THB3 million per unit.
This figure will drive sales to grow by at least 8 percent in the remaining second half of the year, the agency predicted.
Andrew Batt, International Group Editor of PropertyGuru Group, wrote this story. To contact him about this or other stories email andrew@propertyguru.com.sg
