Condos continue to attract Thai, foreign buyers to Hua Hin

[buksida]

Hua Hin remains an attractive destination for second homes, according to Knight Frank Thailand, part of the global property consultancy Knight Frank LLP.

The consultancy says the majority of buyers hail from Bangkok, while sales to overseas clients including expatriates working in Bangkok only make up 25 percent of total. Especially condominiums have proved to be a popular second home option in the seaside resort.

Surasak Limpa-arayakul, director of research and valuation department, Knight Frank Chartered (Thailand) said that between 2003 to the end of June this year, the total supply of condominiums was 17,349 units, with 3,956 of those added in the first half of 2011. The company said that over 75 percent of condominium buyers are Thai, especially those from affluent Bangkok-based families. Beach condominiums are popular amongst expatriates and foreign retirees. One of the major deciding factors for expatriates when buying a property in Hua Hin was the reliability and reputation of the developer, while affordability seems to be vital for foreign retirees.

Surasak further explained that foreign buyers, unlike those in other tourist destinations such as Phuket and Samui are mostly retirees or those with Thai spouses. They have a limited budget, said Surasak and prefer to buy a residence for their own use as a second home during their country’s winter season. Condominiums is the only type of property which can be owned on a freehold basis by foreigners.

The historical unit take-up rate during peak years for Hua Hin condominiums has been about 1,000 to 1,200 units per annum, however during the first half of this year, there were about 1,655 units sold. The influx of new supply has seen take-up rates to drop from 45 percent in 2011 to 44 percent during the first half of 2012.

Supply and demand have in recent years focused more on inland condominiums, as opposed to beachfront projects and projects that have sea view from the units.

The cumulative average growth rate of beachfront condominium units in south Hua Hin was at 4.2 percent between 2010 to the first half of 2012, with an average selling price of THB138,010 per sqm, according to Knight Frank.

Source: The Nation

[richard]

Seems they have to be new Condos though

I hear that second-hand properties (houses and condos) are not doing well in the market.

Any property people out there to substantiate that please? I do have a vested interest in the subject

[Winkie]

I think all over Thailand, the second-hand market for properties is difficult.

There are so many new units available, and the standards of new build generally is much better than second hand.

This is why, when buying, nobody should 'factor in' the option to resell, as a major point. It can take an age to sell, if at all, and often at a loss.

[johnnyk]

Basically Thais (major part of the market) do not like to buy second-hand for a variety of reasons, ghosts among them. It's not silly if you believe it.

[JW]

Winkie has it right.

[richard]

Mags, I think you should forward this on to Joyce for info or send the link to her man

[Ginjaninja]

Guys,
Sansiri launched it's new 'Autumn' condo last week right at the end of Takiab overlooking the golf course. Sold 50% of all units on the first day!!! Crazy..
Most of these people will likely sell on (re-sale) and make a handsome profit.
Some spending power here in Thailand..
GN.

[Pleng]

I think all over Thailand, the second-hand market for properties is difficult.

There are so many new units available, and the standards of new build generally is much better than second hand.

Not to mention, newer properties = less chance of ghosts


Seriously, this seems to be a *big* part of why many Thai's prefer new properties/hotels/shopping malls over old ones. No matter how well kitted out a place might be; a new place means less people have lived there before, ergo less chance people have dies there before, and less chance of lost souls walking around.

[buksida]

Developers launch resort condos despite competition
Another developer that has benefited from affordable land costs is Boathouse Hua Hin Co, which bought a 78-rai beachfront plot in Phetchaburi's Cha-am district in 2005 at 3 million baht a rai. Now the price has soared to 35 million baht a rai, said managing director Prapaisith Tankeyoon.

The company's beachfront project, Boathouse Hua Hin, was launched in 2006 with a sales value of 6 billion baht. Now it is selling a new phase with 159 condo units priced at 80,000 baht per sq m even though similar projects sell for more than 100,000 baht.

According to property consultant Knight Frank Chartered (Thailand), the number of condo units in the Hua Hin area at the end of the first half of this year totalled 17,349, an increase of 6,000 from the end of last year.

During the first half, some 4,000 new condo units were launched in the Hua Hin area _ considered a high figure given that only 1,600 units were absorbed in the area in the same period last year.

Meanwhile, the SET-listed developer Charn Issara Development Plc yesterday launched Baan Thew Talay 2 in Cha-am. The project, worth 2 billion baht, will comprise two four-storey buildings and a 15-storey building. It is the second phase of the project. The first phase, worth more than 3 billion baht, comprised five condo buildings, 80% of which were sold.

Source: Bangkok Post

[buksida]

Knight Frank foresees bright prospects for Hua Hin property market
Frank Khan, head of the residential department of Knight Frank Chartered (Thailand), said recently that the prospects of the Hua Hin property market were bright.

Property sales in the resort town have almost doubled in recent years, as many of the country's leading developers, including Sansiri, Q House, SC Asset, Land and Houses and LPN, have started planning new projects. Their contribution to the market has also strengthened the competition.

In addition, new retail develop-ments, such as the massive BLUPORT Hua Hin Resort Mall, are boosting buyer interest in the area. On the supply side, the number of new seaside condominiums will drop given the scarcity of land for real-estate projects, though there are still some plots available in areas such as Kao Tao, Puk Tien and Pranburi.

However, since they are far from the city centre and their beaches are not as nice, these areas are not as popular as Hua Hin itself. Khan said the accumulated supply of condos up until the first half of year was 17,349 units, marking an increase of 6,000 units at the end of last year from The Energy project, which is mostly comprised of one-bedroom units. During the first half of this year, there was a new supply of approximately 4,000 units, which is quite high. Rise in demand was reflected by the more than 1,600 units sold in the first half, compared to some 1,300 units sold in the same period last year. However, demand has not risen at the same rate as supply.

Buyers are generally Bangkok residents looking for a vacation home and the proportion of foreign buyers is not very high.

The price of a one-bedroom condo in Hua Hin is approximately Bt900,000 for a non-beachfront unit and about Bt2 million to Bt3 million |for those with ocean view. Though the trend of condo pricing in Hua Hin is |rising, it will only be in the range of |2-3 per cent. Prospective buyers will largely remain Bangkok residents, with some from Scandinavia, Russia and Germany.

Khan explained that a new sub-group of local buyers was emerging, largely comprised of young professional Thais whose parents already own a second home in the resort town. He said that since they already have close ties with Hua Hin, they want to buy smaller units to call their own.

Source: The Nation