Potential Hua Hin, Cha-am recovery seen
published : 24 Sep 2021 at 04:00
newspaper section: Business
Residential markets in Hua Hin and Cha-am could see an improvement next year after facing a slowdown since the first half of last year, with support based on an economic recovery and higher vaccination rate in 2022.
Vichai Viratkapan, acting director-general of the Real Estate Information Center (REIC), said an economic recovery and a vaccination rate of more than 60% would be key drivers for a recovery in the western coastal provinces.
In 2022, new residential Cha-am supply being launched in Prachuap Khiri Khan and Phetchaburi will total 2,261 units, worth a combined 10.6 billion baht, up from 1,902 units worth 8.7 billion in 2021.
The 2022 supply will come close to those during the pre-pandemic years, including 2,521 units in 2019 and 2,775 units in 2018. There was a sharp contraction to 989 units last year.
In Prachuap Khiri Khan, where all the condo supply is situated in Hua Hin, new condo supply launched during the second half of 2021, the first half and the second half of 2022, would total 1,325 units, 1,940 units and 1,893 units, respectively, from zero units in the first half of this year.
In Phetchaburi, where most of the condo supply is in Cha-am, new condo supply launched in the first half of this year totalled 1,213 units, after no new launches since the second half of 2018.
During the second half of this year and the first and second half of next year, there will be 404 units, 243 units and 287 units of new condo supply being launched, respectively.
According to REIC, new residential supply launched in Prachuap Khiri Khan and Phetchaburi rose 49% year-on-year to 886 units in the first half of 2021.
The increase was partly attributed to a lower-than-normal base in the same period last year.
The largest increase was from low-rise houses with a rise of 51%, while condos rose 47%, but the sales value of the new supply dropped 51%.
Unsold residential supply in these two provinces would total 5,188 units worth 22.9 billion baht as of the end of 2021, compared with 5,183 units worth 23.8 billion baht in the first half of 2021.
In the first half of 2021, new sales totalled 1,382 units worth 6.8 billion baht, with the numbers expected to rise 110% and 135%, respectively, in the second half.