Is There An Oversupply Of Condos For Sale In Hua Hin?

The peak season for Condos for Sale in Hua Hin is between March and May which means a waiting time of about a year or a year and a half before they are completely sold out. Property Perfect Pic’s first condominium project, Bella Costs in Hua Hin is worth 1.67 billion baht but its recorded presales are worth 350 million baht of total market value. About 90% of its customers are locals while the remaining 10% is foreign buyers from Asia and Europe.

Most of the demand comes from Bangkok because people are looking for a second home in the holiday resort rather than a first home. However, according to Pairoj Wattanavorodum, the managing director of The Confidence Co that launched the condominium project Trust Hua Hin 2013, Condos for Sale in Hua Hin have an oversupply because developers from Bangkok have decided to move to the holiday resort. When the economy took a downturn, demand for property in the area suffered. However, there were signs of recovery since the last quarter of 2014 and if the economy grows by at least 4%, property demand is expected to increase.

The main demand for residential units in Hua Hin comes from locals and Scandinavian countries but more recently, investors from China, Singapore and Hong Kong are showing interest in expanding their investments in Hua Hin. Other Condos for Sale in Hua Hin which were launched in 2012 are now recording presales between 40% and 60% on the average.

According to survey by Colliers International in Thailand, there will be at least 16,000 condo units in Hua Hin this year which would take at 18 months to sell even without any additional residential project that will be launched. About 8,800 units are expected to be completed this year with nearly 5,000 units located within the Cha-am area and 1,880 units in Hua Hin.

Since 2012, the prices of land that are closest to the beach have more than doubled in spite of the glut in demand. Seven years ago, land for development in Hua Hin was 20 million baht per rai but they are now valued at 120 million baht per rai. There is also a boost in the prices of property in other sites that are near the beach.