Mr. Phanom Kanjanatiamta Managing Director of Knight Frank Thailand Limited stated that the condominium market in Cha-am-Hua Hin during the first three quarters of 2018 showed positive signals after a prolonged slowdown in previous years. According to a survey and research by Knight Frank Thailand, between January and September 2018, 1,041 new condominium units entered the market, an increase of over 164% compared to the same period last year. These new supplies are located in the heart of Hua Hin and developed by major operators from Bangkok. Notably, since 2012, only 35% of new projects are located beachfront or not far from the sea (Seaview Projects) due to the increasing scarcity and rising prices of beachfront land in Cha-am-Hua Hin. Consequently, developers have shifted their focus to urban locations, emphasizing convenience surrounding the projects, as well as project designs that align more closely with buyers' needs, including room sizes, usable space, and common areas that are both functional and aesthetically harmonious with the vacation atmosphere of the city.

 

Number of Condominiums in Cha-am Hua Hin from 2008 to Q3 2018

 

 

In terms of demand, the new projects launched in the first nine months of 2018 had an average sales rate of about 75%. The main factors supporting the sales of these projects, in addition to the aforementioned selling points, include the reputation of the developers, which serves as a significant magnet attracting buyers' interest. For the Cha-am-Hua Hin area, the primary buyers remain Thai nationals intending to use the properties as vacation homes or for rental purposes, rather than for short- or long-term speculation. The selling prices of new projects in the Cha-am-Hua Hin area between January and September 2018 averaged around 96,000 baht per square meter, a decrease of 9% from the same period last year, as these new projects are in lower segments and locations.


Supply, Demand, and Accumulated Sales Rates of Condominiums in Cha-am Hua Hin from 2008 to Q3 2018

 

Asking Prices for Condominiums in Cha-am Hua Hin Launched from 2008 to Q3 2018

For the market situation in the last three months of the year, it is expected that an additional supply of about 200-300 units will enter the market, which is beneficial for maintaining market balance after a recent slowdown. However, a potential negative factor is the Macroprudential policy for housing loans proposed by the Bank of Thailand, which will take effect from April 1, 2019. Knight Frank Thailand's research department predicts that this policy may directly impact the decisions of some Thai buyers looking to purchase properties in Cha-am-Hua Hin for vacation homes or investment rentals.

 

Thank you for the information from www.knightfrank.co.th