The property markets in Cha-Am and Hua Hin are seeing soaring growth, well ahead of other regions in Thailand, according to one property firm.
Plus Property has reported the two hotspots now boast a take-up rate of 73 percent, a reflection of the strong demand for residential property in the area, and an average selling price of between THB70,000 and THB80,000 per sqm.
Poomipak Julmanichoti, Managing Director of Plus Property, expects the condominium market in Cha-am and Hua Hin to show healthy growth throughout the first quarter of the year following a string of new development announcements in the previous month. These include LPN Development’s new project which has already reached a high take-up rate of 70 percent.
Plus Property, meanwhile, set a new record with THB 600million worth of sales of completed in Cha-am and Hua Hin condominium units from Sansiri in a recent two-day sales event in Bangkok.
“These sales figures indicate especially high demand growth in the Cha-am and Hua Hin condominium market compared to other regions – even as major cities across the country continue to face an oversupply situation,” said Poomipak.
“This leads us to a couple of key questions: Will the provincial condominium market enter a bubble state? When is the right timing for consumers to buy or invest in condominiums in this situation?”
Data from late 2014 shows that the Bangkok condominium market had an absorption rate of 71 percent and an occupancy rate of 81 percent, both of which signify consistently high demand for both residential and investment purposes. However, Cha-am/Hua Hin area is one of the few zones that are able to beat Bangkok’s absorption rate with a 73 percent ratio from the sale of 29 seaside projects offering a total supply of 14,100 units against demand of 10,400 units.
This makes it evident, he added, that the city still has residential property demand to be fulfilled.
European tenants dominate the leasing market with the top three customer nationalities being Russian (29 percent), Swedish (11 percent) and Finnish (10 percent), while the average rental period falls between one and three months – according to Plus Property.
“We expect the property market in Cha-am and Hua Hin to soar even higher for residents and investors alike in the summer school break – especially in April and May, thanks to the abundance of long holidays that include Chakri Day, Songkran festival, Labour Day and Coronation Day.
“This summer is a golden period for anyone looking to purchase or invest in finished condominium units as they will have the time to visit the project and check out the actual units, which also minimises the risk inherent in purchasing under-construction projects.”
Andrew Batt, International Group Editor of PropertyGuru Group, wrote this story. To contact him about this or other stories email andrew@propertyguru.com.sg
