Condos continue to attract Thai, foreign buyers to Hua Hin

The Nation October 12, 2012 1:00 am Hua Hin remains an attractive condominium market for second homes. Hua Hin and nearby Cha-am are as bustling as ever, with several condo projects launched by leading developers. Most buyers and guests come from Bangkok. Only 25 per cent come from overseas, including expatriates in Bangkok, according to Knight Frank Chartered (Thailand) Co. Surasak Limpa-arayakul, director of research and valuation, said yesterday that starting from 2003, the condo supply in Hua Hin had risen to 17,349 units by the first half of this year. During the same half last year, 3,956 condo units were added to the Hua Hin and Cha-am supply. More than 75 per cent of the Hua Hin condo buyers are Thais, especially those from affluent Bangkok-based families. There are also some expatriates and foreign retirees buying beach condos. The reliability and reputation of the developer tends to be the most important factor for expatriates, while an affordable price seems vital for foreign retirees. Foreign buyers, unlike those in other tourist destinations such as Phuket and Samui, are mostly retirees or have Thai spouses. They have a limited budget and prefer to buy a residence for their own use as a second home during their country's winter. As foreign-ownership regulations in Thailand have become more stringent, foreigner buyers are paying more attention to freehold condos, at up to 49 per cent of the total ownership. They are likely to search for an inland condo that is cheaper than a beachfront unit. The historical take-up during the peak year for Hua Hin condos has been about 1,000-1,200 units per year. However, during the first half of this year, about 1,655 units were sold. However, with the influx of new supply, growth in demand cannot keep up, causing the take-up rate to drop from 45 per cent in 2011 to 44 per cent during the first half of 2012. Hua Hin condos used to be sold easily, especially those in beachfront projects or projects with sea views. Recently, the inland condos have garnered interest, with compact sizes and affordable prices. The cumulative average growth rate (CAGR) of beachfront condos in southern Hua Hin was 4.2 per cent from 2010 to the first half of 2012, with an average price of Bt138,010 per square metre. Those with limited budgets can select sea-view condominiums in Cha-am with an average price of Bt92,404 per square metre. However, the price will be lower for units farther from the beach.