Proud plans resort homes along Hua Hin beachfront
MAI-listed developer Proud Real Estate Plc will launch an InterContinental-branded residential project worth 3.5 billion baht in Hua Hin to capitalise on strong demand for resort homes from wealthy Thai families.
Proudputh Liptapanlop, the developer's executive director, said the project will occupy one of the last beachfront land plots in Hua Hin, where the price is now 150 million baht per rai for beachfront land.
"Hua Hin will have new infrastructure driven by the Thailand Riviera project to boost the tourism industry, which will increase its potential," she said. "When all are completed, the property value will rise."
The new infrastructure projects include an expressway from Dao Khanong to Bang Khun Thian and a motorway from Bang Khun Thian to Ban Phaeo. These will cut travel time from Bangkok to Hua Hin to an hour's drive from 2.5 hours.
Hua Hin airport will expand the runway to serve larger aircraft, while double-track and high-speed rail are also in the government's plan, said Ms Proudputh, the only daughter of former politician Suwat Liptapanlop.
InterContinental Residences Hua Hin will be located on a 7.5-rai beachfront plot on Petchkasem Road near Hua Hin Soi 71 with 238 condo units sized at 45-300 square metres and priced from 7.89 million to more than 100 million baht.
"The project is aimed at tapping Thai families in which three generations live together," Ms Proudputh said. "Grandparents may stay longer. Parents who are not salaried workers may spend four days a week, while children will visit on weekends."
Aliwassa Pathanadabutr, managing director of property consultant CBRE Thailand, said the project's price per sq m of more than 200,000 baht will be a new record in Hua Hin, where the highest-ever price per sq m was less than 200,000.
"There have never been branded residential projects in Hua Hin, whereas demand is still looking for luxury and super-luxury projects," Ms Aliwassa said. "Despite being a resort town, Hua Hin has facilities just like a city has, with international schools and hospitals."
These attract high-value tourists who will eventually become second-home buyers, she said.
According to CBRE research, beachfront land in Hua Hin is rare. In the luxury and super-luxury segment, just 23 units launched in 2011, 20 in 2014 and 356 in 2017.
The sales rate for beachfront supply and the occupancy rate of five-star hotels in Hua Hin exceed 80%. The average daily rate is over 6,000 baht for InterContinental and 4,000-5,000 baht for other upscale hotels.
Serena Lim, vice-president for development at InterContinental Hotels Group (IHG) in Southeast Asia and Korea, said the Hua Hin project will be the ninth InterContinental Residences property worldwide and the first in Thailand.
"Location is key when we choose to introduce our hotel brand to a residential project," she said. "It should attract potential buyers. Phuket and Bangkok are attractive for a second InterContinental Residence in Thailand."
PROUD shares closed on Thursday on the Stock Exchange of Thailand at 1.50 baht, up five satang, in trade worth 5,460 baht.