Ms. Risinee Sarikaputra, Director of Research and Consultancy at Knight Frank Thailand, revealed that the condominium market in the Cha Am – Hua Hin – Khao Tao area has been relatively slow due to the outbreak of the new strain of coronavirus, or COVID-19. There were 444 units sold during the first five months of the year. During the past four years, there was an average of around 1,600 condominium units sold each year in the area. From mid-March to mid-May, it was found that condominium sales were slow due to the government’s policy of prohibiting inter-province travel across the country, which caused Thai people in Bangkok to refrain from going to other provinces. However, many operators have turned to online sales and promotions, huge discounts and free giveaways to attract and encourage customers to reserve units, especially to boost sales for projects that are expected to be completed this year.
According to research conducted by Knight Frank Thailand, as of May 2020, 23,044 condominium units out of a total of 27,459 units in Cha Am – Hua Hin – Khao Tao have been sold, which represents a sales rate of 84 per cent and marks an increase from 2019, where the sales rate was 83 per cent. This is due to the limited new supply of just 238 condominium units, all from a project managed by a 5-star hotel chain, entering the market in the first five months of the year. There are around 4,415 remaining units in Cha Am – Hua Hin – Khao Tao for sale; it is expected that, if there is no additional new supply, it would take approximately three years for these units to sell out.
From a market survey, it was found that Cha Am possesses the highest number of remaining units to be sold, with 3,119 units available for sale. This area a locale where new projects can easily be developed due to the large number of available plots near the sea. However, operators are aware of the large number of remaining condominiums in Cha Am. Many developers have thus delayed the launch of condominium projects in this area until the remaining supply has reached a more balanced level. Nonetheless, condominiums located in the Hua Hin and Khao Takiab areas are likely to maintain good prospects due to the fact that there is very little supply remaining for sale. In addition, Hua Hin and Khao Takiab are well developed locations, surrounded by facilities, shops, restaurants, hospitals and markets – such conveniences attract buyers to condominiums in these areas.
Most of the condominium buyers in Cha Am – Hua Hin – Khao Tao, or up to 90 per cent, are people from Bangkok, as the Thai capital is relatively close to the area. In addition, this area offers a complete array of developments such as leading department stores, restaurants, hotels and water parks. There are also around 10 per cent foreign buyers of condominiums in this area, mostly comprised of Europeans from France, England, Germany, Switzerland and the Netherlands. There are also some Chinese buyers, but not many. The foreigners who buy condominiums in Hua Hin include those who have a Thai wife and purchase units as their own residences as well as those who buy condominiums as a second vacation home for the high season at the end of the year, occupying the units for 2 to 4 months. The Thai people who buy condominiums in this area often come to relax during the holidays.
According to Knight Frank Thailand’s research, it was found that the cumulative supply of condominiums in Cha Am – Hua Hin – Khao Tao from 2005 to May 2020 included a total of 27,459 units, up to 54 per cent of which are condominiums without sea views. Condominiums that have ocean views account for 46 per cent of the total supply.
The average selling price of condominiums with sea views in this area is around 132,000 baht per square metre, and sales prices have increased by 0.3 per cent from the end of 2019. The average selling price of condominiums without sea views in this area is around 74,000 baht per square metre; the selling price has only increased by 0.4 per cent from the end of 2019. Sales prices have been quite static due to the situation created by the COVID-19 pandemic. Many projects have offered promotion prices during this period.
Ms. Risinee provided insight about the trends of the Cha-Am – Hua Hin – Khao Tao condominium market, saying that the condominium sales in this area are quite slow this year due to the COVID-19 outbreak. The remaining condominiums for sale are usually located in Cha Am with no sea views; these comprise a very high portion of the supply – over half of all the remaining units. As for the condominiums located in Hua Hin – Khao Takiab – Khao Tao, they tend to have good prospects as there are few remaining units in the supply. The selling prices thus tend to increase. During the remaining seven months of the year, there are no expected launches of new condominiums in this area.