Condo developers head out of Hua Hin

[buksida]

A lack of good beachfront land in Hua Hin is driving condominium development south to Pranburi and north to Cha-am.

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Risinee Sarikaputra, associate director for research and consultancy of property consultant Knight Frank Thailand, said the next surge in development would probably take place in Khao Takiab, Cha-am and Pranburi.

Most future projects would be located in inland areas.

About 10 new projects comprising at least 1,500 units are planned for Cha-am and Hua Hin. Only three will be new projects, while the remainder will be expansions of existing developments.

Somsakul Limsuttaphan, assistant managing director of property consultant Plus Property, said Cha-am, especially locations close to the Hua Hin boundary, was attracting the attention of developers.

"Beachfront land plots in Hua Hin are very scarce, and now the same situation is happening in Khao Takiab," she said.

Hua Hin beachfront land prices are about 80 million baht per rai, while plots in Khao Takiab and Cha-am are 30-40 million baht.

Ms Somsakul said Cha-am commercial developments such as Fly Now Outlet and community malls would encourage the launch of residential and hotel projects.

According to Knight Frank, many big players are entering the market in the Hua Hin area. These include Quality Houses Plc, Charn Issara Group, Sahapat, St James Hotel, Sansiri Plc and Land & Houses Plc.

Knight Frank reported there were four new condominium projects with a value of about 4 billion baht launched in the fourth quarter last year.

Land & House's Ocas with 173 units worth 1.9 billion baht was launched in north Hua Hin. The other three projects were in Khao Takiab: My Resort phase one with 228 units worth 700 million baht, The Sanctuary Hua Hin with 91 units worth 546 million baht, and The Seacraze Hua Hin with 272 units worth 750 million baht.

Plus Property is the sales agent for The Seacraze Hua Hin, which is 55% sold with unit prices of about 50,000 baht a square metre. The developer is LHM Property, which moved from Kanchanaburi to Hua Hin and developed and sold out The Breeze Hua Hin last year.

According to Plus Property's research, accumulative condominium supply in Hua Hin totalled 53.31 billion baht while demand was valued at 35.38 billion baht as at the end of last year.

The market leader in terms of the value of condominium supply was Sansiri with 7.79 billion baht, accounting for 15%, followed by Boat House Hun Hin with 5.5 billion baht or about 10%.

The supply of single houses and townhouses totalled 30.28 billion baht while demand was 19 billion baht. Banyan Tree Group launched the highest value with 3.27 billion baht, representing 11%, followed by Milford Group Development with 1.7 billion baht and Avalon Villa Development with 1.52 billion baht or 5% each.

[fft100]

"According to Plus Property's research, accumulative condominium supply in Hua Hin totalled 53.31 billion baht while demand was valued at 35.38 billion baht as at the end of last year.

The supply of single houses and townhouses totalled 30.28 billion baht while demand was 19 billion baht. "

The difference between supply and demand is slightly alarming and doesnt bode well for house or condo prices in the near/medium term - esp. with all the new ones starting/in the pipeline.

[hhfarang]

The difference between supply and demand is slightly alarming and doesnt bode well for house or condo prices in the near/medium term - esp. with all the new ones starting/in the pipeline.

Whether it is alarming or bodes well or not depends entirely on whether you are a buyer or a seller...

[PeteC]

It bodes well for people like BB who are planning retirement/move/purchase within a year or so. It looks as if shopping for a house will actually be a fun experience. Now, if the pound gets back up to 70 as well, euphoria! Pete

[Big Boy]

Unfortunately if the Pound went back up to 70, there would be more people looking for property, and less people looking to sell.

[Takiap]

My wife actually works for Plus Property, and I know both The Breeze, and Seacraze have been doing extremely well, both with Farang buyers and Thai buyers. In fact, she just sold three units the other day to a Thai woman from Bangkok. I've also been told several units have sold to Russians, so it seems they are looking further than Pattaya nowadays

Just next door to us a development has gone up, and as far as I know, each and every house was sold before building even started. The developers have now started another project further up the road, and once again, I'm told most of the planned houses are already sold. I think a lot has to do with pricing- keep prices below 3 million, and the properties will sell. Many people are reluctant to dish out 10 million for a home nowadays, especially with the exchange rate being what it is, and considering we can't even really own a house unless you set up a bogus company, which strictly speaking, is illegal anyway.

[buksida]

Khao Takiab condo prices skyrocket
Highest Q1 prices in south Hua Hin

Khao Takiab saw the largest increase in condominium prices in the Hua Hin market, at 15.6% in the first quarter of this year, while south Hua Hin recorded the highest condominium prices at more than 130,000 baht per square metre.

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The scarcity of beachfront land in the resort town drove up the prices of beachfront condominiums in the area in the range of 6.3% to 15.6% compared to the first quarter of 2010, according to the property agency Knight Frank Thailand.

Risinee Sarikaputra, associate director for research and consultancy, said the highest selling prices were in south Hua Hin, averaging 130,050 baht per sq m, while the lowest price was in Cha-am, at 90,593 baht.

Total supply of selected projects represented around 50% of the total supply in the market in the first quarter of 2011, showing that the condominium market had two main target groups _ Thais for beach condominiums and foreigners for inland condominiums.

More than 75% of buyers of beach condominium were Thais, especially wealthy Thai families from Bangkok. There were also some expatriates and foreign retirees who bought beach condominiums.

The reliability and reputation of developers tended to be the most important factors for expatriates while an affordable price seemed to be vital for foreign retirees.

Foreign buyers, unlike those in other tourist destinations such as Phuket or Samui, were mostly retirees or those with Thai spouses. They had a limited budget and preferred to buy a residence for their own use as a second home during their country's winter season.

As foreign ownership regulations in Thailand had become more stringent, foreigners who were looking for a residence were paying more attention to condominium units which they were able to buy on a freehold basis.

Thus, they were likely to search for an inland condominium unit which is cheaper than a beachfront unit.

In a survey in the first quarter of 2011, Knight Frank found 38 condominium projects with 4,751 units in the market. The majority of supply, or 1,449 units, was located in Khao Takiab, followed by inland and Cha-am areas with 1,241 and 1,015 units respectively.

The majority of current selected supply being marketed is beachfront projects, at 1,928 units, representing 42% of the total, while the number of the units from non-beachfront projects was 1,588, representing 33.4% of the total. The number of units of inland projects totalled 1,241.

Beachfront condominium supply in Hua Hin will be difficult to find due to the scarcity of beachfront land in the area, thus the selling prices are expected to increase.

Demand is expected to come from largely foreign buyers looking for a convenient location with facilities.

The total selected condominium supply in Hua Hin as of the end of 2010 was 6,504 units which were accumulated from 2003-10 in Cha-am, Hua Hin, Khao Takiab, Khao Tao and inland areas.

A glut of supply existed in 2007 with about 2,121 units, followed by 2008 and 2010 with approximately 1,506 and 778 units respectively.

According to Plus Property, cumulative residential supply in Hua Hin as of the end of 2010 totalled 9,709 units _ 52% condominiums, 43% single and twin houses and 5% townhouses. Of the total supply, 6,522 units were taken.

Last year, there were a total of 5,192 units on sale and 2,008 or 39% were taken up. The sales rate for the Hua Hin beachfront was 76%, followed by Cha-am (73%), Khao Takiab (65%) and mountainside (57%).

The average condominium price in Hua Hin in 2010 was 76,438 baht per sq m, up 5% from 2009. The highest price was on the Hua Hin beachfront at 98,167 baht, up from 94,083 baht, followed by Khao Takiab at 74,439 baht, up from 69,635 baht.

Source: Bangkok Post

[charlesh]

Someone should ask Mr "Frank Knight" why there are so many unsold condo's from Cha-am to Kao Takiab!

[richard]

IMO HH would benefit if all greedy Property Developers f***ed off

[JimmyGreaves]

IMO HH would benefit if all greedy Property Developers f***ed off

You gotta laugh

[TypicallyTropical]

Someone should ask Mr "Frank Knight" why there are so many unsold condo's from Cha-am to Kao Takiab!

So true! I found a condo that I liked on-line in January of 2010, it was still on the market when I was in HH in October, and it is still on the market 16 months later!

[John612]

Hi, John here. I think staying in a villa during holidays means fun and relaxation together. During these summer vacation we are planning a trip to koh samui. Koh samui is the most beautiful island that I had ever heard but I have never been there. Any suggestions?

[brianks]

Koh Samui beautiful? A bit too developed and crowded for me. The mainland across the straight south where there are lots of beautiful beaches, uncrowded and many different types of accommodations all spread out. Its called Kanom and only a few km from ferry landing. A smaller fishing/farming village on the coast. Even one resort on its own 2km virtually private cove that almost takes a 4 x 4 to get to but isolated, quiet and inexpensive. If you want closer try Bang Sapan area.

[easyas]

Koh Samui beautiful? Might have been once - now a concrete jungle, for the most part filled up with largely up themselves obnoxious Poms, both tourists and ex-pats!

[sateeb]

for the most part filled up with largely up themselves obnoxious Poms, both tourists and ex-pats!



Head for Bali mate....you will feel at home with all the largely up themselves obnoxious Aussies