Issara United, a joint venture between SET-listed developer Charn Issara Development and Thai conglomerate Saha Group, will launch a new condo project in Hua Hin worth 1.7 billion baht to capitalise on the robust demand for vacation homes.
Boonkiet Chokwatana, chairman of Issara United, said the new project would be the company's eighth project since the joint venture began over a decade ago.
"Our joint venture started with the Thew Talay project, spanning over 100 rai in Cha-am. The land, owned by Saha Group, was developed by Charn Issara in six projects," said Mr Boonkiet, who is also chairman of I.C.C. International Plc.
ICC and Saha Group each hold a 25% stake in Issara United, while the remaining 50% is controlled by Charn Issara Development. Issara United has developed 1,640 condo units in total worth a combined 11.2 billion baht in Cha-am and Hua Hin. At present, the sales rate stands at 90%.
Aliwassa Pathnadabutr, chairman of property consultant CBRE (Thailand), said the Hua Hin property market had been resilient, rebounding quickly post-pandemic due to a surge in demand for vacation homes.
The rising demand is particularly clear in the luxury segment, which also had significant growth during the period 2020 to 2021.
"The Hua Hin market bounced back alongside the recovery of tourism. Condo demand in Hua Hin now extends beyond just Thais, attracting foreign buyers, particularly from Russia," she said.
According to CBRE, total condo supply in Hua Hin stood at 3,290 units between 2017 and 2023.
As of the third quarter this year, the average sales rate of existing units being marketed stood at 85%.
By location, the condos that are a walking distance of 300 metres awayt from the beach had the highest sales rate, with 100% sold due to their more affordable prices.
Beachfront units had a sales rate of 89%, while the sales rate for condos located inland stood at 80%.
About three-quarters, or 76% of the properties were purchased for use as a second home, 11% for both personal living and investment, 10% for long-term investment, and 3% as the buyers' primary residence.
This year, 30% of Hua Hin condo buyers were foreigners, up from just 8% in 2017-19.
Some 22% of buyers this year were Russians, while 8% were other foreign nationals. During the period 2017-19, German, French and Chinese nationals each accounted for 1% of buyers, while 5% of buyers were other foreign nationals.
Songkran Issara, chief executive of Charn Issara Development, said the new project -- Sasa Hua Hin -- will be located on plot covering roughly four rai, comprising three seven-storey towers with a total of 254 units measuring between 32 and 183 square metres, priced from 3.9 million baht.