MAI-listed developer Proud Real Estate Plc expects to close sales of a luxury condo project in Hua Hin by next April as wealthy Thai buyers shift to local destinations.
Executive director Proudputh Liptapanlop said the Covid-19 pandemic helped put a spotlight on vacation homes in key tourist destinations a few hours drive from Bangkok.
"Thais are taking a second look at local destinations after learning travel overseas is extremely difficult until vaccines are available, which will likely take longer than a year," she said.
People spending vacations in Hua Hin and Pattaya during the pandemic has helped promote resort homes in those destinations among Thais.
After the country relaxed restrictions in June, the average occupancy in Hua Hin hotels has improved.
InterContinental Hua Hin Resort, a hotel owned by the Liptapanlop family, saw a good occupancy on both weekends and weekdays from June-July. It reported 70% occupancy in July and 60% in August.
The momentum continued into September with full occupancy on weekends, said Ms Proudputh.
Proud Real Estate also recorded sales of 2 billion baht from 100 units sold in June-July at InterContinental Residences Hua Hin, a luxury branded residential project with 238 units worth 3.5 billion baht, launched in late February 2020.
"Sales were driven by both pent-up demand and new buyers as we launched the project a week before the pandemic hit the country," she said.
"Among buyers were Russians and Germans who bought via online channels."
Foreign buyers acquired 10 units, representing 5% of the total, and most of them were Europeans who trust the hotel brand.
Many buyers want to have a retirement home in Hua Hin where the number of retirees totals around 30,000.
There were 70-80 units remaining for sale sized 45-300 square metres and priced from 7.9 million baht a unit, or from 250,000 baht per sq m, the highest price per sq m in Hua Hin.
"We expect to close sales by the end of this year to Songkran next year as condo supply in central Hua Hin with beachfront area is very limited," said Ms Proudputh.
Scheduled for completion in December 2022, the project will be located on a 7.5-rai beachfront plot on Phetkasem Road in central Hua Hin.
Ms Proudputh, also executive director of Proud Group, which operates Vana Nava Water Park, said the water park recorded higher sales from the Thai Tiew Thai fair held in early September than from the event last year.
The entrance fee at the fair was 499 baht per person, down from 800 baht, which is a reduction from the usual 1,200 baht before the pandemic hit.
Traffic during long weekends was around 1,500 visitors, higher than usual weekends that recorded 1,000 visitors.
But on weekdays, traffic remains low as previous target customers were foreigners as well as meetings and events.