Knight Frank Thailand Analysis of Hua Hin Condominium Market

According to Knight Frank Thailand Research, the total supply at Q1 2017 stands at 23,584 units, with no new projects or units being launched yet in 2017. The latest project launched was Lumpini Park Beach 2 in late 2016 with 124 units. For the past few years, approximately 1,000 to 3,000 units were launched, and we expect future supply to grow only marginally as the market is relatively stymied from unsold inventory from projects with more than a thousand unit and weakened demand. The majority of new Hua Hin condominium supply is from Grade C projects with unit prices set well below THB 3 million. Grade A projects have become rare as beachside plots are becoming scarce.

Figure 1

News release

Source: Knight Frank Thailand Research

 Figure 2

News release

Source: Knight Frank Thailand Research

 

Lately, Khao Tao is an area that has suffered from low demand and slow sales; hence not many developers were interested in developing there. Only one project was launched in the area in the past two years: Bella Costa (323 units).

Figure 3

News release

Source: Knight Frank Thailand Research

Khao Takiab saw the highest sold rate in the market as it has always been considered an extension of Hua Hin with a lot of markets and seafood restaurants. The low selling price in comparison to Cha-am made Khao Takiab another highly sought after area. However, today, Khao Takiab has been almost fully developed (similar to Hua Hin); most plots now are greyfields. Khao Tao saw the lowest demand and sold rate, as it is the area furthest away from Bangkok and also from Hua Hin town itself. The area is also relatively rural in comparison to the rest of the Hua Hin areas.

Figure 4

News release

Source: Knight Frank Thailand Research

Overall, the Hua Hin condominium market saw the accumulated sold rate of 77.9% at the end of February 2017 – an increase from 77% at the end of 2016. Approximately 221 units were sold since the beginning of 2017.

Figure 5

News release

Source: Knight Frank Thailand Research

The annual unit take-up has been relatively steady during 2013 to 2015, with 2016 seeing a big dip from an average of 2,400 to 2,800 units sold annually to 1,800 units because of a number of issues such as tightened mortgage policies from retail banks. However, Mr. Frank Khan, Executive Director and Head of Residential, Knight Frank Thailand, commented, “Now some of the developers are coming up with very attractive investment products right on the beach, which can be very beneficial for the market and end buyers who want to enjoy investment with pleasure.”