By Russ Downing
Hua Hin & Cha Am’s Condominium market continues to be red hot and the fire will be further fueled by the
government’s newly announced property stimulus measures.
Khun Poomipak Julmanichoti, managing director of Plus Property, the real estate agency arm of Sansiri PLC was recently quoted as saying “The market for completed condominium units in the holiday areas of Hua Hin and Cha Am still has plenty of growth potential thanks to tourism promotion measures, which will drive foreign investors to make a purchasing decision more quickly.”
According to Plus Property’s latest survey, they found strong demand for the 17,381 finished condominium units
available for sale (as of September) in the two resort areas.
Looking specically at 30 projects in Hua Hin and Cha Am, there were 12,664 finished units or 73% of the total
available in the two resort city’s, while the take-up rate is as high as 89% or 11,318 units. Compared with the same period last year, supply and demand have increased by 145% and 162%, respectively, for finished units.
Khun Poomipak went on to say, “stimulus measures such as loans through the GH Bank and other financial institutions have led to new promotional offers that will inject more cash flow into the market, boost consumer purchasing power and maintain the energetic air in these tourism hotspots.”
“The rising popularity of completed condominium units has brought down the available supply in Hua Hin and
Cha-am to just 11%. With few developers launching new projects this year, the existing demand gradually bled out of the market,” Mr Poomipak said.
In Hua Hin and Cha Am the average per square meter price now stands at 82,997. Some units are being brought back on to the market for resale with a 40% price hike or up to 116,410 baht per sqm.
Overall, the market in Cha-am and Hua Hin is very healthy with Thai and foreign tourists flocking to both in
droves, especially during long holidays and the high season, said Mr Poomipak.
A closely followed retirement website called “Live and Invest Overseas recently named Hua Hin the 7th most attractive city in the world to retire to. Mentioning that article Khun Poomipak finished by saying
“We expect unit transfers to rise in the final quarter thanks to the government’s stimulus measures and the growing number of tourists”.
But it’s not just condominiums that are in high demand, home sales are also very strong, especially among Hua Hin’s established developers.
Orchid Palm Homes is currently building and selling their 8th development called Mali and recently announced that phase 1 is already 70% sold. When asked why she thnks sales at Mali have been so brisk, Jane Rennie, Sales and Marketing Manager said, “I believe that our success at Mali Residence comes down to two simple things. Firstly, we believe that whilst we build homes on a development, that doesn’t mean that our customers are generic; it is critical that we recognise this and respond flexibly to the different needs and expectations. Secondly, we recognise that our customers have a choice in what and where they buy a home. By asking our customers to be part of the solution – and not viewing them as a problem – we involve them in the entire process and that way, we make people happy. If you are making people happy, as a side effect, they will be happy to open up their wallets and buy from us.”
Another well known developer, Red Mountain, is also enjoying brisk sales with their latest development called Woodlands. Paul Huntjens, sales manager had this to say when asked why he thought so many buyers were purchasing there, “Following the success of our Red Mountain project with all 80 villas completed by the end of this year we have now sold about 1/3 of all plots in Woodlands in just over one year time as a result of the excellent value for money, the modern design and great location at just a few minutes from the bypass highway and at just 20 minutes’ drive from a number of major golf courses in Hua Hin.
Smart House is another long time Hua Hin developer who have found
success focusing on the low to medium priced housing market.
According to Grahame Beecham, who oversees sales at Smart House, “Sales have remained strong with our October sales being the highest we’ve experienced in many years. What I’ve noticed recently is that the clients now viewing are serious buyers who have already made a firm commitment to buy
a property in Hua Hin.” Grahame went on to say, “Many clients that I have spoken with worry about Europe and what the future holds for many different reasons and see a retirement in Hua Hin to be a much better option for a higher quality of life.”
Hua Hin Hillside Hamlet has certainly had their success in Hua Hin with 5 sold out projects and are well on with sales on their sixth. Khun Waa Fueangsuwan is the developer here although she’s known by Khun “Wow” to her buyers. She had this to say about why sales have been so good at Hillside, “we are excited to begin our 6th
project after successfully selling out our last five. In a very short time we’ve already sold 4 homes with an additional 3 reserved in the new project. I believe the reason we’ve had such success is that we are always improving on our quality and the materials we use. Our buyers know they are getting a premium well-built home. The high resale value of properties built in our previous projects are undeniable proof that house hunters recognize and value our building standards.”
One of the real surprises in the Hua Hin Real Estate scene is the remarkable success that first time developer’s LaBua are enjoying. They’ve had the unheard of good fortune of selling over 35 homes in 10 months, before their first show-house was ever completed. Jonus Glud, one of 3 partners in the project told us “ Labua’s house designs take inspiration from some of the world’s most famous luxurious Danish designers to offer a kind of property never before-seen in Thailand.” Jonas went on to say, “our customers are not only looking to buy a designer villa but a new luxurious lifestyle with international facilities such as a tennis court, fitness, maid/garden/pool service, a 200-meter lagoon pool, a pool bar, Jacuzzi areas and a restaurant, all surrounded
by scenic mountains and close to town.
Hua Hin’s high tourist season starts in mid November and usually mirrors the high property purchasing season in Hua Hin. With the political situation in Thailand being quiet for well over a year now and semi favorable exchange rates around the globe, those in the property business are hoping to see an increase in an already good property market.
ABOUT THE AUTHOR
Russ Downing is Managing Director of HOT Hua Hin Property and has for the last 8 years headed up the Hua Hin judging team for the Thailand
Property Awards, widely seen as the Academy Awards for the Thailand Property Sector. Russ’s articles have been translated and re-printed in a large popular Chinese magazine and he has had 3 of his luxury listings chosen for the Wall Street Journal’s “House of the Day” feature with near worldwide exposure in the WSJ’s U.S., European and Asian editions as well as online.
If you are looking to purchase a home in Hua Hin contact Russ at 084 387 5699 or russ@hothuahin.com, www.hothuahinproperty.com.