Other property markets in Thailand have slowed but Cha Am, Hua Hin and Pranburi still continued to grow slightly over the past few years.
Many condominium units are expected to be completed and transferred in the towns of Cha Am, Hua Hin and Pranburi during the second half of 2015, with most developers trying to attract more buyers during the economic slowdown by keeping the same selling prices, or by introducing minor increases. According to Colliers International Thailand in its latest market report on the resort market in the area, Thailand’s economic situation is still not meeting government expectations.
Most Thais are not confident with their financial situation so have postponed buying any property-buying decisions for fear of long-term debt. All property and real estate developers are more concerned with the demand situation so have most held off on launching their new projects in the second half of 2014 and the first six month of 2015. Only 810 condominium units and one housing project with six units were launched during the first half of 2015, and the real estate firm reported that a lot of unsold units are still available on the market, especially condominium units that were launched during the past few years.
The average prices in the condominium and housing market only increased by between 3 percent and 5 percent from 2014 as all developers attempted to attract more buyers by keeping the same selling prices or increasing them only slightly. According to the real estate firm, the major buyers in the Cha Am, Hua Hin and Pranburi market are Thais, so the area has not been impacted as much as other resort property markets by the decreasing number of Russians.
Approximately 22,780 condominium units were launched between 2011 and the first half of 2015; around 66 percent were in Cha Am, 20 percent were in the Hua Hin coastal area, 9 percent were in the Hua Hin inland area and 5 percent were in the Pranburi area. The Hua Hin Inland area is the main location for housing development due to lower land prices than in the coastal areas. Most foreigners that are staying in the Cha Am, Hua Hin and Pranburi areas are already retired and opted to live in Thailand because of the lower cost of living, the convenience and safety, as well as the international hospitals in the area.
Most condominium units that were sold in the past few months were priced between THB 3 million and THB 5 million per unit. Many low-level condominium units were launched in the past few years, but mid- to low-level buyers are not as confident in their financial situations so postponed their buying decision and will likely do so for the remainder of the year. Looking forward, Colliers said that all developers will postpone launching their new condominium projects during the second half of 2015 and wait for the market to recover and for a better economic overview. All property markets in Thailand have slowed, but Cha Am, Hua Hin and Pranburi still continued to grow slightly in the past few years.