A strong year ahead for Hua Hin real estate

[Bristolian]

http://www.property-report.com/a-strong ... -hin-28607

A strong year ahead for Hua Hin

2013 is proving to be another strong year in Hua Hin for new condominium projects and sales. Many of Thailand’s leading developers both listed and non-listed are planning large scale projects in and around our royal beach city.

2012 was a banner year with 6,360 condo units launched at 19 projects, many of which were pushing the bar in terms of innovation and creativity. New trends were also emerging; previously most of the new condo construction consisted of two and three bedroom units but now developers are accommodating all budgets by shifting to studio and one-bedroom units which can be had for as low as THB2 million (US$67,500). This strategy reflects the growing number of Thai buyers, primarily from BKK seeking affordable weekend getaways and/or properties to rent out for additional income. Sansiri has seen exceptional success in this low cost category with studio and one-bedroom sales up dramatically.

Hotel development has not kept pace with Hua Hin’s ever increasing tourist population. This is driving private investment in condominiums offering short weekend stays to long term rents of six months to a year. Foreigners are as interested as Thai’s in renting a condominium or villa for their holiday, finding it makes more sense in financial terms when more than one bedroom is needed.

Hua Hin’s neighbour to the north, Cha Am, is also benefitting from the buying surge and actually outpaced Hua Hin in sales to Thai buyers last year. Due to lower land values the square meter cost is generally less in Cha Am than Hua Hin where the scarcity of good land is causing land prices to explode. Furthermore Cha Am has an abundance of restaurants and shops that cater to local as well as foreigners.

According to Sunchai Kooakachai, associate director of Colliers Hua Hin branch, “Our research shows Hua Hin’s neighbor to the north, Cha Am is increasingly the focus for big name developers. More than 3,560 condominium units had been launched in Cha Am by the end of 2012, and more are scheduled to launch in 2013. Colliers was appointed the sole sales agent for Baan Thew Talay a large project by respected developers Charn Issara, Sahapat and ICC International. Colliers sold 80 percent of the 270 phase one units within a year with the most popular being the one bedroom unit which was selling for less than 4 million baht” (US$135,000).

Sansiri, one of the biggest if not the biggest developer in Hua Hin, whose 17 projects are primarily located in Hua Hin’s center and to the south, is also moving to Cha Am with its newest project called Rain; a large 499 unit project on more than 9 rai of land located near the beach and next to the Regent hotel in Cha Am.

Sansiri hasn’t forsaken Hua Hin however as they will soon be launching a new 26 story condominium on the border of Hua Hin center and Hua Hin south. The number of units has yet to be announced.

Another recently announced project is Celeste Hua Hin, located in Khao Tao. The development will feature 321 units in six buildings on 13 rai of land with units starting at THB2.9 million (US$97,940) and average THB80,000 (US$2,700) per sqm. This beachfront development is designed in a tropical modern style and is also represented by Colliers.

Hua Hin has always been popular with Bangkok’s high society due to its royal heritage but its popularity is growing exponentially with a younger crowd of Bangkok residents looking to invest in a second property to get away from the hustle and bustle of the large metropolis and enjoy quiet restful weekends on the beach. However it is not just Thai’s that are fuelling this building boom – international tourists are arriving in larger numbers every year with many seeking to buy a holiday and or retirement home here. Thailand is almost always in the top ten when it comes to the best places in the world to retire and Hua Hin is viewed as one of the best cities within Thailand to retire to.

[usual suspect]

And the water supply for all these units..?? (when Pranburi Res. is only 20% full nowadays).

[Takiap]

And the water supply for all these units..?? (when Pranburi Res. is only 20% full nowadays).

Shhhhhh...........the water shortage is meant to be confidential and should not be made know to potential buyers.

[buksida]

Realty boom seen in Hua Hin next year
The real-estate market in the Hua Hin area will see strong growth as developers from Bangkok launch condominium projects there next year, according to Knight Frank Chartered (Thailand) Co.

The buyer target is still narrow, focusing on locals, Bangkok expatriates and foreign retirees, while other tourist destinations such as Phuket and Pattaya also attract tourists and foreign investors.

Prime locations, especially in the south of Hua Hin, are becoming scarce and land prices are soaring, so the future supply of condos is expected to be concentrated in Cha-am and inland, where many plots are still available with prices lower than other locations. Condo developers should balance supply and demand, as the target groups are not diversifiable. They should also be cautious if they continue to produce many units, risking oversupply and falling prices.

The condo supply last year slowed down, with fewer new units but more projects, as developers embarked on many smaller projects with greater privacy features, executive director Frank Khan said yesterday.

In the past decade, condo supply was mostly two- or three-bedroom units, but now the trend has shifted to one-bedroom units priced under Bt2 million. Most are holiday homes rather than investment assets.

Rental income

Recently, some have been bought for rental income, as there are not many hotels and there is growing demand for units for short stays from Friday to Sunday, or long weekends.

Scandinavian and Russian tourists are renting apartments for three to six months. They prefer one- or two-bedroom apartments with full recreational facilities such as swimming pools, beach access and tennis courts.

The condo supply was plentiful last year and locals were about 75 per cent of the buyers. This is in stark contrast to Pattaya, where the target customer groups are a variety of locals, foreigners and professionals working in the industrial estates of Chon Buri.

There are many shopping and recreational facilities in Hua Hin that serve visitors, such as the Santorini, Cicada, Venezia and Plearnwan community malls, Black Mountain Water Park and Sam Phan Nam Floating Market.

Condo supply in the Hua Hin area increased by 35.2 per cent to 18,102 units last year with 4,709 units coming from 15 projects launched that year. Of the new units, 3,255 were offered in the first half and 1,454 in the second half.

Cha-am was still the most popular location in the Hua Hin area condo market with about 1,696 units, or 36 per cent of the total number of units launched from four projects entering the market in 2012.

The emerging area in Hua Hin was found inland, with 1,424 units launched last year. The projects were developed by Sansiri, with units selling for Bt1.5 million to Bt3.5 million. However, they were located quite far from the beach.

Source: The Nation