Decline in sales of condos in Hua Hin: Over 4,000 units without buyers

A serviced condominium in Hua Hin. File photo

There has been a decline in the sales of condos in Hua Hin due to the impact of the COVID-19 pandemic, property consultants Knight Frank have warned.

According to Nattha Khahapana, the firm’s Deputy Managing Director, local condo sales continued to decline in the first half of 2021.

While some projects continued to report sales, just 280 units were sold in the first six months of the year, compared 1,600 units a year sold before the pandemic.

Condo purchases in the region were at just 85% of the levels of 2020.

Sales that had completed were mainly to cash buyers who had money to invest in property in the region, despite the current economic situation brought about by the pandemic.

Mr Nattha said there were still currently 4,314 units available for sale in Cha-Am, Hua Hin and Khao Tao, with many developers forced to offer discounts on existing units, while  construction of a number of new projects had been put on hold.

As for the average prices of condos in Hua Hin, Cha Am and Khao Tao, developers were asking 130,608 baht per square metre for a sea view condo. However, a sea view unit managed by a hotel chain can average between 160,000-360,000 baht per square metre.

At the higher end of the market, a unit with 45 degree views of the sea would fetch an average price of between 200,000-250,000 baht per square metre, while a unit with 180 degree sea view would cost an average of between 300,000-360,000 baht.

However, units located away from the beach and without a sea view cost around 71,928 baht per square meter.

Mr Nattha said this was a slight decrease in the average price from 2020 and that further discounts could probably negotiated.

Mr Nattha added that despite the decline in the market, sea view units continue to sell, particularly at the higher end of the market, where buyers tend to be wealthier and are less impacted by the economic slowdown.

Units in Hua Hin district and Khao Takiab remain most popular, Mr Nattha said.

It was units without sea views located away from the beach that saw the biggest decline in demand.

Despite the decline Mr Nattha said he did expects the market to recover, but only when the country opens fully to international tourists.