Veranda looks to tap Hua Hin condo demand
B2.5bn project brings supply to beachfront
Hotel and residential developer Veranda Resort and Spa Co will launch a high-end condo project worth 2.5 billion baht in Hua Hin to absorb demand for beachfront condos where supply is limited.
Veranda president Verawat Ongvasith said the company bought a 14-rai site with a 40-metre beachfront near Khao Takiab last year to develop a low-rise condo project with five buildings and a total of 263 units.
"Land plots with the beachfront area in Hua Hin for new property development are very rare, while condo demand in beachfront locations is strong," Mr Verawat said. "We are confident to have sales of 80-90% by the end of next year."
Aliwassa Pathnadabutr, managing director of property consultant CBRE Thailand, said there were only two new villa projects with unit prices from 30 million baht newly launched in Hua Hin last year.
Meanwhile, no condo supply has been newly launched either on or near Hua Hin beach since 2013. The outstanding amount numbers about 9,900 units with a take-up rate of 80%.
"If there will be any transaction of beachfront land plots in Hua Hin, the price will reach 70-80 million baht per rai," Ms Aliwassa said. "With limited land supply, new condo development will be in the high-end segment."
The new condo project, called Veranda Residence Hua Hin, will have unit prices of 90,000-140,000 baht for a fully furnished unit or start from 3.9 million baht.
Mr Verawat said Veranda will develop a boutique hotel on the same plot of the Khao Takiab site with two four-storey buildings and 39 rooms, aiming to add hospitality and property management services to the residential project.
The company started residential development two years ago with Veranda Residence Pattaya, worth 2 billion baht and now 80% sold. That project will be completed this year.
The developer was looking for land plots in key tourist destinations in southern provinces such as Phuket, Phangnga and Krabi for new hotels. The group now has five hotels with revenue growth of 10% last year.
The properties include the 130-room Veranda Resort Hua Hin, the 70-room Veranda Chiang Mai-The High Resort, the 145-room Veranda Resort Pattaya, the 237-room Sofitel So Bangkok and the 50-room Rocky's Resort in Samui. Occupancy rates averaged 70% last year.
"We have to focus on hospitality business in major tourist destinations to avoid risk," Mr Verawat said. "Tourism business has potential for growth, but the difference in each location as supply is varied by destinations."