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Hua Hin condo market picks up


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Hua Hin condo market picks up

By The Nation

 

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File Photo Hua Hin/The Nation

 

The condominium market in Hua Hin has returned to a balanced state thanks to developers slowing down the launches of local condominium projects. This follows the opening of a large number of developments in 2011 and 2012, which caused demand to fall behind the supply, according to Knight Frank Thailand research.

 

The company's director of research Risinee Sarikaputra said that in the middle of 2019, the supply of condominiums in Hua Hin totalled 26,886 units. An average of 1,120 new condominium units were put on sale annually between 2016 and 2018, as operators began to delay the launch of projects in the Hua Hin area because of the oversupply. In 2011 and 2012, new condos were being launched at a rate of 6,000 units per year, resulting in reduced sales rates of 45 per cent in 2011 and 56 per cent the following year. That same period also saw operators engage in price wars by devising various promotions to boost sales. Many operators had to delay the launch of their projects and some projects were cancelled altogether.

 

Slightly more than 22,000 condominiums have been sold in the Hua Hin area out of a supply of 26,886 units, which represents a sales rate of 83 per cent. The lowest sales rate was in 2011. The sales rate increased to 71 per cent in 2015 and 78 per cent in 2017. It was the highest in mid-2019, at 83 per cent. The area with the most supply remaining includes Cha-am, with about 3,376 units available for sale while the areas with the least amount of available supply are Hua Hin and Khao Takiab, with only 254 and 295 units remaining, respectively. The sales rates in Khao Takiab and Hua Hin are 92 and 89 per cent, respectively.

 

Risinee said that the main buyers in Hua Hin are still Thai people looking for a holiday home for their weekend breaks, and they may rent the units out when they are not there. Foreign customers who buy condominiums in Hua Hin only account for 10 per cent of all buyers; this buyer group consists of foreigners from Scandinavian countries, China, Hong Kong and Singapore.

 

In terms of the price of condominiums in Hua Hin, the average selling price of a condo with sea views is currently 131,494 baht per square metre. This increased 2 per cent from the end of 2018. The price of a sea view condo falls within the range of 107,000 to 176,000 baht per sqm. Lower-priced units are usually those that have only partial sea views or are not directly facing the sea. The average selling price in Hua Hin tends to be higher than other areas. For units that do not have sea views, the prices range from 60,000 baht to 90,000 baht per sqm. In the first half of 2019, the average selling price of units without sea views was 73,685 baht per sqm, reflecting an increase of 2 per cent from the end of 2018, she said.

 

Source: https://www.nationthailand.com/property/30375605

 

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-- © Copyright The Nation Thailand 2019-08-30
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Big LOL to this article... If you go by the big projects like The Energy by night you'll see that 99% of the rooms have no light.

 

And I do know people who work as realestate agents here and they say its D-E-A-D in the water. One realestate company I know have not sold a single unit since they opened 1 year ago. Even after they cut their sales fee. Nothing. But sure, they are more oriented towards the foreigners. Is the Thai market so different? From what I understand Thai buyers want new condos/houses because of the rules for loans. Buying second hand is much harder, so the second hand market for realestate isnt moving at all.

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Having a Chinese partner who is involved with Real Estate I can NOT confirm this at all. I know many condos are EMPTY in HH...and AFAIK prices are still falling. I even saw complete BLOCKS that were empty!!

 

I realy see nice condos for as low as 10.000 Bath a month...!! Sure you see these NOT on various internet sites...but if you are on location..you will find them.

 

I think prices will fall further....for sure if the Thai Bath stays strong...like it is now and with more and more tourists looking to other countries in SEA then Thailand. Personaly i still think much Thai real estate is way overrpiced....offering low quality build...for ridiculy high prices. Excuse my English.

 

take care all

 

Hans.

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