No new projects have been launched in Hua Hin this year and future supply is likely to only grow marginally in the coming years as the market is burdened with unsold inventory from large projects and weakened demand, shows research from Knight Frank Thailand.
Hua Hin’s condo market saw an accumulated sold rate of 77.9 per cent at the end of February which was an almost 1 per cent increase from the end of 2016. An estimated 221 units have been sold since the start of the year. However, annual unit take-up fell in 2016 after being relatively steady from 2013 to 2015. This decrease was due to a number of issues such as tightened mortgage policies from banks, according to Knight Frank Thailand.
At the moment, most of Hua Hin’s condo supply is from Grade C projects with unit prices set under THB 3 million. With most beachside plots off the market and the popular Khao Takiab area along with the Hua Hin city centre now almost fully developed, Grade A projects are becoming limited. Companies are now looking to get creative with what projects they will launch in the future.
“Now some of the developers are coming up with very attractive investment products right on the beach, which can be very beneficial for the market and end buyers who want to enjoy investment with pleasure,” Frank Khan, Executive Director and Head of Residential, Knight Frank Thailand.
Khao Takiab recorded the highest sold rate in the market with its close proximity to Hua Hin and relatively low prices being strong selling points. Khao Tao is an area currently suffering from low demand and slow sales with most developers avoiding building in the area. Only a single project has been launched in Khao Tao in the past 2 years and with the town being relatively rural and further away from Hua Hin, activity here is likely to remain subdued, concludes Knight Frank Thailand.
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