A new report has highlighted the popularity of Hua Hin with condo buyers from Bangkok, who accounted for almost all condo sales in the region in 2021.
Of the total number of condos bought in Hua Hin in 2021, 90 percent were bought by Bangkok Thais, who see Hua Hin as a safer alternative to the capital with regards to the pandemic.
And despite going through a period of decline, the residential condo market in Hua Hin is likely to see an improvement as the COVID-19 situation improves, property firm Knight Frank has said.
In its latest report on the condo market in Cha-Am, Hua-Hin and Khao-Tao, Knight Frank said the price of a sea view condo in Hua Hin has climbed to 250,000 baht per square metre, despite tepid demand.
In Cha Am, the picture was less rosey, where the price of a condo without a sea view was around 70,000 baht per square meter, with more than half of the stock still available for sale.
According to Mr. Sanchai Ku-ekachai, Director and Head of Research and Consulting Division, Knight Frank Thailand Company Limited, the second half of the 2021 condominium market in the Cha-Am – Hua-Hin – Khao-Tao area continues to decelerate in regards to both supply and demand.
There were only 2 new new projects released for sale throughout the 2021.
A lack of supply and demand
Knight Frank said that developers in the region opted to wait and observe the COVID-19 situation before launching new projects.
Although Hua Hin remains a favourite weekend getaway for people from Bangkok, condominium sales, on the other hand, have continued to decline since the first half of 2021.
The cumulative supply of condominiums in the Cha-Am – Hua-Hin – Khao-Tao area between 2008 and the second half of 2021 totalled 28,055 units.
Of these, 20,571 units have been sold to date, approximately 73% of the total number of units.
In the second half of 2021, 154 condo units were sold in the region, totaling 380 units sold throughout all of 2021.
This means there are approximately 7,484 unsold condo units throughout Cha Am, Hua Hin and Khao Tao. Approximately 50% of these units are located in condominium projects which are more than 5 years old.
Foreign buyers prefer villas or houses
“At the moment, 90% of buyers are Thais residing in Bangkok, 5% are Thais in provincial areas, and 5% are retired Scandinavians, Norwegians, Dutch, and French. However, most foreigners who live in Hua Hin choose to buy houses or villas since it is more quiet and private because they will stay here for an extended period.”
Although the pandemic has had an adverse impact on the local residential condominium market, it has led to more people in Bangkok showing interest in condominiums in Hua Hin.
Thai buyers from Bangkok see Hua Hin as a safer place and somewhere they are less at risk from the pandemic, the report said.