The number of condominiums on the property market in Hua Hin rose by almost a quarter in the first half of the year, fuelled by an increase in the number of Bangkokians purchasing homes in the area, it has been claimed.
According to a report by Knight Frank property consultancy, there were 22,619 units on the market in the area during the first half of this year, of which around 11,395 units were sold.
The purchase rate for new condominiums stood at 49% in 2012, rising to 52% in the first half of this year, leaving around 10,639 condominium units still on the market.
Demand was from Thai medium-income earners, primarily from Bangkok, who opted to buy compact inland units, from 30 to 35 square metres, at prices less than 2 million baht per unit.
The report argues that Hua Hin is “gearing up for growth”, due to the government’s plan to promote Hua Hin and Cha-am as a seaside resort destinations for foreigners, and infrastructure development plans for a high-speed train link and special highway, which will make it easier to travel between Bangkok and Hua Hin.
But it urges developers to exercise caution before considering new condominium projects, given that more than 10,000 units remain for sale.
“The Hua Hin residential market is overwhelmingly driven by Thai purchasers who are looking for a second home or a holiday property near Bangkok; this group comprises nearly 75% of the total purchasers,” the report said. “Other buyer groups are expatriates and foreign retirees from Europe.”
It adds that Hua Hin’s seaside destination has recently drawn interest from Chinese buyers who are seeking second residential properties in Asia, “due to a joint venture between Thai investors and Chinese developers in the works for the Hua Hin market this year”.