New Condo Projects

[Jockey]

As someone involved in the Real Estate in the area, particularly condos, I'm interested to know other peoples opinions regarding the feasability of all the new condo projects that have started recently. Off the top of my head here is a list of all the new condo projects in the area:

• Chan Talay (near Cha Am 175 units)
  The Boat House (383 units)
  Tropical Ocean View (183 units)
  Blue Sky (72)
  Vimanlay (33 units)
  Beach Palace
  Ban Sanploen
  Franjapani
  Blue Mountain
  Tira Tiraa (162 units)
  Avalon
  Black Mountain
  Country Club
  Manor Park
  Mykanos
  The Breeze
  A building in Kho Takiab nearly finished (forget its name)

Now I'm starting to see more billboards for

• Hua Hin Centre
  Condo building near the Train Station on Phetkasen Rd
  The Precinct (Phetkasem Rd?)

There are probably more. I think it must be about 3,000 units to be sold.

That's a huge amount of investment and I wonder if it is feasible to sell everything?

I get the impression some projects are highly successful and others struggling.

Does anyone have any thoughts about this?

[huahinsimon]

where will the water come from to support all building? add homes to the list and

HHS

[chelsea]

Jockey, I only have knowledge of what people here write about foreigners buying propery in LOS, and would think that developers have gone along with the thought that as we cannot own the land our house is built on, that it may be a safer bet for us to buy a Condo.

By the numbers that you are talking about, this may seem to be true.
I did read somewhere that there has to be a % of Thais to foreigners in each building, so perhaps if that is true, that could be the reason behind the growing numbers of Condo Developments.

Personally, with crime on the up in HH I think from a security idea a Condo would be a more viable option.

[Jockey]

Chelsea - I totally agree with you. The % you are referring to is the rule that foreign freehold ownership of condos is limited to 49% of the total sellable floor space of the building. Interestingly in Phuket and Pattaya the 49% threshold is often reached and any new foreign buys after that need to be leasehold, although in the Hua Hin and surrounding area, the foreign 49% limit usually falls well short. It seems in this area the foreigners have a preference for houses.

When I posted, I was actually mainly thinking about whether the units will be sold or not i.e. does the demand outstrip the supply?

[DawnHRD]

When I posted, I was actually mainly thinking about whether the units will be sold or not i.e. does the demand outstrip the supply?

I have no experience or knowledge of the property or real estate businesses, so I'm probably way off base here, but looking at all of the condo/housing estates being built, it appears to me to be a case of greed (developers) more than need (customers). I can't see how they're all going to be filled. Having said that, unless the laws change, regarding buying land, I think maybe the condos might be a better bet, particularly for those without Thai spouses.

[Farang]

Without particular dispensation that is usually given only for condos to be built in environs severely infested with tourists,
there needs to be 51% Thai ownership of all votes of the condo if the condo owns the land on which it is built.
If the condo is built on rented land (herein, mes enfants, lies a Great Screw) all shares (units) of condo can be owned
by the foreign devil as he controlleth not the land in this case.

Never shalt Thee buy a condo unit unless the condo ownet the land on which it is built. Never, ever!

[chelsea]

Jockey, if they make the developments to include lifestyle things like a gym, pool, tennis court etc, I do not think that they will have any problems with the 49% foreign occupation, what would worry me is if they can fill the 51% ot Thai ownership.
HH is in a good position being so close to BKK, and you in Cha Am are in an even better position being a bit closer

I understand what people are saying about whether they will be able to sell, but I would imagine when the projects are taken on that there is a break even point when selling and after that point is reached, everyone after that is the cream on the top. So perhaps that is what the developers are working on and there being so many on the market at present.

[huahinsimon]

Water, water everywhere (gulf) but ne'er a drop to drink.

Could someone with some "knowledge" about water offer an opinion on the availability of this indispensable commodity in this region to support not only the increase in residences but the businesses that will spring up to service them.

Jockey, maybe you have a statistic on this. e.g. for every x increase in residences there will be a corresponding x increase in business and services to support them. The average residence uses x liters per day, the reservoir capacity in the area is X. What new projects are coming on line? It may seem like a lot to ask, but you are a real estate professional and lets pretend I am a customer with these questions. How do you answer?

I would think that in a "developed" society the municipality would have some limitations on building that corresponds to the ability of the infrastructure to support it, water being one. Does the tessaban that issues the permits have a "game plan" for development and infrastructure? or are payments made that negate the whole idea of control?

Or am I being unreasonably concerned about H2O?

HHS

[Jockey]

The average residence uses x liters per day, the reservoir capacity in the area is X. What new projects are coming on line? It may seem like a lot to ask, but you are a real estate professional and lets pretend I am a customer with these questions. How do you answer?

This is a very important question for town planning, and is the reason we are supposed to have people such as environmental impact analysts and town planners. I have absolutely no idea whatsover what the reservoir capacity of the area is, but I do know Hua Hin already has a severe water shortage and I have been told (through the grapevine) there are plans to address the situation. Part of the planning is to fix the apparently huge amount of wastage due to leaks from burst pipes. I believe there is a separate thread regarding water capacity / shortage in Hua Hin.

What I would say however, is many of the current projects out of town do not rely on municipal water, and have their own water wells, so a simple calculation regarding developments / people / municipal water capacity is not as straight forward as your question implies.

A good tip for buying a house is to insist on a large storage water tank of (say) 10,000 litres. That way, if the water supply stops for a few days, you will have enough to keep you going before you need to send for water delivery via truck.

Anyways - I hope this doesn't become a water thread as there already is one I believe!

[da]

Availability of fresh water is likely to be a limiting factor.

Fresh water floats on top of the salt water so on the flood plain near the sea there a thin lens to draw from. It is replenished with rain water and during the dry season all of the aquifers will become depleted. Various private wells drawing from this common pool will mutually cause vast intersecting cones of depression which are dewatered areas.


Folks in the higher up inland regions will draw from limestone and sandstone aquifers less affects by the sea but are still more or less dependent on local watershed based rainfall. The viability of deeper wells increases as one moves away from the sea.

I know alot the klongs are leaky and they should be kept in good repair. Periodically the government releases water from the resevoir into the system.

[sandman67]

During the late 90's I was working in Northern Goa and they had a similar situation there as is happening here....mostly uncontrolled development running wild, estates and developments flying up with sod all infrastructure to support it.

Result: iffy power and significant water problems.

The water table there was so hard hit they began experiencing salination of the fresh water supplies as sea water was drawn inland, polluting water supplies. Village wells had to be relined and redrilled. Windmills or Solar Panels to power the pumps needed because the power supply was unreliable. Costly.

The monsoons resulted in floods in some areas as uncontrolled /unmanaged development had resulted in large areas of land becoming concreted over, so the rain just ran off into the rivers and floods were the result.

The local / indigenous fishing communities were hard hit, being coastal their wells were hit first, and the floods knackered the fishing up as more sediment and fresh water inflow in the bay meant less fish.

After a year or so of this they got up in arms, and kicked back. There were a few riots, the local then provincial then central govt got involved....

A lot of the developments ended up getting ripped down again.

The riots wont happen here but the environmental damage is already visible....

[STEVE G]

I was reading somewhere that in some areas of America, golf courses have to build a drainage system that somehow allows rain water to quickly replenish the water table, thereby compensating for the huge amounts of water that they get from wells to irrigate the course.
Apparently if this is done correctly the course will have a neutral effect on the supply. I was wondering if any of the numerous golf clubs around Hua Hin bother with such a system, or even property developments.

[Jockey]

I knew it! This has become an H2O thread!

[Norseman]

The Watergate syndrome is back Jockey!!

[huahinsimon]

As someone involved in the Real Estate in the area, particularly condos, I'm interested to know other peoples opinions regarding the feasability of all the new condo projects that have started recently.
Does anyone have any thoughts about this?

Don't ask the question if you dont want to hear the answer.

Looks like many peoples first thought is about water. That's natural. Cant live without it and its plain that this area is in a rain shadow and doesn't have much.
You can probably translate the collective answer into. This whole place is going to be a bust if they build all that stuff and those who had a good investment by getting in early will suffer because there is no control. Sell on Jockey, sell on.

HHS