The number of new condominium units launched in Hua Hin this year is unlikely to exceed 4,000, as inventories in the local market remain abundant and demand for condos priced below 2 million baht is not large.
Most of the new condo supply launched in the past two years has been priced from 1-2 million baht a unit, said Frank Khan, executive director of the property consultant Knight Frank Chartered (Thailand).
"These units were located in two locations. One was an inland area with no beachfront due to the lower land prices away from the beach. Another was between Hua Hin and Cha-am, as there were more plots of land available for new development than inside Hua Hin town," he said.
This year will see at least six new condo projects comprising 2,000 to 3,000 units launched in Hua Hin.
Three of the projects will be by the SET-listed developer Sansiri Plc with nearly 1,000 units combined.
As well, there will be a 1,000-unit project by the SET-listed L.P.N. Development Plc, one project by the owner of a resort in Khao Takiab and one by Chinese developer the Miracle Group.
The take-up rate of Hua Hin condos was never less than 63% from 2003-10.
But in 2011, it dropped to 45% due to 6,889 new condo units being launched that year.
That number broke the 2007 record of 2,121 newly launched units.
"A take-up rate of 40% is still acceptable. But if it drops to 20-30% or 6,000 new units are launched this year, it will be dangerous to the market, with a possible drop in selling prices," Mr Khan warned.
Knight Frank research showed 4,709 new condo units were launched last year, down from 6,889 in 2011.
The accumulated condo supply in Hua Hin as of last Dec 31 totalled 18,102 units, an increase of 35.2% from the end of 2011.
The take-up rate improved to 49% last year from 45% in 2011.
Praphaisith Tankeyura, managing director of the Hua Hin property developer Boathouse Hua Hin Co Ltd, said the local property market, which was already booming, grew even stronger after the government's announcement of a high-speed railway to there in the first phase.
He said the government chose a 100-rai plot near Hua Hin airport for a high-speed rail station, a location that can also easily serve Phetchaburi's Cha-am district.
The site is expected to see a mini boom in the near future.
About the author
- Writer: Kanana Katharangsiporn
Position: Business Reporter