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New condominium supply in Hua Hin and Cha-am boosted
sales in the first four months of 2007 to about two billion baht, and executives
expect the total to climb to five billion baht by the end of the year, said
property agency Knight Frank Chartered (Thailand) Co, Ltd.
Managing director Phanom Kanjanathiemthao said the sales were from five projects with a total of 740 units launched from January to April, the peak period for the Hua Hin and Cha-am market. About 60% were in Cha-am and 40% in Hua Hin.
''The number of new condominiums launched in the first four months of this year doubled the total new condominium supply launched last year as the situation in 2006 was uncertain,'' he said yesterday.
Last year only two new condominium projects with 277 units were launched and are now almost 90% sold. From 2003 to 2006, the total number of new condominiums in Cha-am was 943 units, or 51%; Hua Hin had 601 units, or 33%; and other areas had 297 units; or 16%.
According to the company's survey, 2,581 condominiums were on the market in the first quarter of the year. About 68%, or 1,749 units, were sold.
Condo prices are now quite high. Asking prices of some beachfront units were 120,000 to 150,000 baht per sq m, while Grade-A units had an average price of 80,000 baht per square metre.
Rare beachfront plots and land prices increased by up to 50% over the past two years. Currently, land prices in the area range from about 60,000 to 100,000 baht per square wah.
Unit prices were also as high as for luxury condominium units in Bangkok at 80,000 to 100,000 baht per sq m. Some beachfront condo units were priced as high as 140,000 baht per sq m and up to 40-60 million baht for a villa on a lot of 100 to 200 square wah.
In some projects, unit prices needed to drop to 3-7 million baht from 5-10 million baht, and unit sizes reduced from two bedrooms to one bedroom to match a buyer's budget, he said.
Buyers look at five factors when choosing a condominium unit in Hua Hin and Cha-am: sea view, facilities, location, after-sales service and pricing that matched the product positioning.
Mr Phanom said the Hua Hin-Cha-am market was divided into two segments _ on the beach, targeting Thais and foreigners who seek second homes; and mountain-view, far from the beach, targeting foreign retirees especially from Scandinavian countries.
On the mountain-view side, a large number of residential developments are located on the other side of Phetkasem Road, opposite the beach.
''Thai buyers do not prefer these projects as most of them are located far from the beach, the market and the main road. But foreign retirees do not care about the beachfront location as they wanted to stay at a home, not a resort,'' he said.
Mr Phanom said that foreign retirees needed to escape the winter in their home countries for four to six months each year. They did not care much about the economy and local politics as long as Thailand remained safe for them.
Besides, there is no other destination like Thailand, especially Hua Hin and Cha-am as unit prices are not as high as in Phuket or Bali. Meanwhile, local politics in Indonesia and the Philippines tend to be more violent than in Thailand.
''Vietnam will clearly be our major rival in the next 10 years, depending on its government's ability to push development of infrastructure including road, water supply and electricity. Hospitals are especially vital to foreign retirees,'' Mr Phanom added.
Managing director Phanom Kanjanathiemthao said the sales were from five projects with a total of 740 units launched from January to April, the peak period for the Hua Hin and Cha-am market. About 60% were in Cha-am and 40% in Hua Hin.
''The number of new condominiums launched in the first four months of this year doubled the total new condominium supply launched last year as the situation in 2006 was uncertain,'' he said yesterday.
Last year only two new condominium projects with 277 units were launched and are now almost 90% sold. From 2003 to 2006, the total number of new condominiums in Cha-am was 943 units, or 51%; Hua Hin had 601 units, or 33%; and other areas had 297 units; or 16%.
According to the company's survey, 2,581 condominiums were on the market in the first quarter of the year. About 68%, or 1,749 units, were sold.
Condo prices are now quite high. Asking prices of some beachfront units were 120,000 to 150,000 baht per sq m, while Grade-A units had an average price of 80,000 baht per square metre.
Rare beachfront plots and land prices increased by up to 50% over the past two years. Currently, land prices in the area range from about 60,000 to 100,000 baht per square wah.
Unit prices were also as high as for luxury condominium units in Bangkok at 80,000 to 100,000 baht per sq m. Some beachfront condo units were priced as high as 140,000 baht per sq m and up to 40-60 million baht for a villa on a lot of 100 to 200 square wah.
In some projects, unit prices needed to drop to 3-7 million baht from 5-10 million baht, and unit sizes reduced from two bedrooms to one bedroom to match a buyer's budget, he said.
Buyers look at five factors when choosing a condominium unit in Hua Hin and Cha-am: sea view, facilities, location, after-sales service and pricing that matched the product positioning.
Mr Phanom said the Hua Hin-Cha-am market was divided into two segments _ on the beach, targeting Thais and foreigners who seek second homes; and mountain-view, far from the beach, targeting foreign retirees especially from Scandinavian countries.
On the mountain-view side, a large number of residential developments are located on the other side of Phetkasem Road, opposite the beach.
''Thai buyers do not prefer these projects as most of them are located far from the beach, the market and the main road. But foreign retirees do not care about the beachfront location as they wanted to stay at a home, not a resort,'' he said.
Mr Phanom said that foreign retirees needed to escape the winter in their home countries for four to six months each year. They did not care much about the economy and local politics as long as Thailand remained safe for them.
Besides, there is no other destination like Thailand, especially Hua Hin and Cha-am as unit prices are not as high as in Phuket or Bali. Meanwhile, local politics in Indonesia and the Philippines tend to be more violent than in Thailand.
''Vietnam will clearly be our major rival in the next 10 years, depending on its government's ability to push development of infrastructure including road, water supply and electricity. Hospitals are especially vital to foreign retirees,'' Mr Phanom added.
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Hua Hin condo sales double on new supply 
