Mr. Sunchai Kooakachai, Director and Head of Research and Advisory, Knight Frank Thailand said that During the second half of 2021, the overall condominium market in the Cha-am Hua-Hin Khao-Tao area continued to slow in terms of both supply and demand. A survey found that the number of new projects launched for sale throughout the year included only two projects. Also, the Covid-19 epidemic of the past two years has caused condominium developers in the area to choose to wait to see the situation before launching or developing a new project. Although Hua Hin remains a popular holiday destination for Bangkok residents, sales of condominiums continue to slow from the first half of the year.
The cumulative supply of condominiums in the Cha-am Hua-Hin Khao-Tao area before 2008 to the second half of 2021 totalled 28,055 units. In the second half of 2021, the supply of new condominiums launched for sale was from one project, with approximately 136 units, located in Hua Hin Soi 94. Most of the condominiums are in the Cha-am area, accounting for 58 percent, followed by Khao Tao and Khao Takiab at 13 and 11 percent, respectively. The supply of condominiums in Hua Hin accounted for 10 percent of the total supply, while condominiums located in the in-land mountainous accounted for 8 percent. Of the total supply, most of the condominiums, at 55 percent, are those without sea views while sea view condominiums accounted for 45 percent.
In the second half of 2021, a total of 20,571 condominiums in the Cha-am Hua-Hin Khao-Tao area have been sold out of a total supply of 28,055 units, representing a sales rate of 73 percent. The sales rate is relatively stable compared to 2020. In the second half of 2021, only 154 units were sold, taking the total number of units sold throughout the year to 380 units. Overall, the number of units left for sale, as of December 2021, is approximately 7,484 units. In projects that have been launched over five years ago, there are approximately 3,200 units left for sale or 50 percent of the remaining supply.
At present, 90 percent of the main buyers are Thais living in Bangkok while 5 percent are Thais from provincial areas. Another 5 percent are retired expats from Scandinavia, Norway, the Netherlands, and France; most foreigners living in Hua Hin prefer to buy a house or a villa because they are relatively tranquil and private, and suitable for long term occupancy.
Condominiums in Khao Takiab enjoyed the highest sales rate at 96 percent, followed by condominiums in Khao Tao and in-land areas, with sales rates of 95 percent and 90 percent, respectively. The sales rate in Hua Hin and Cha-am was 83 percent and 60 percent, respectively. Cha-am is the area with the highest number of unsold condos at 6,468 units, or approximately 40 percent of the total remaining supply. At present, there is almost no land next to the sea in the Hua Hin area that can be developed. Remaining lands suitable for project development are in Cha-Am, but the area is still less popular than Hua Hin, which affords more convenience and easier access to amenities. In the in-land mountain area that is not close to the sea, there is still a lot of space left for project development — and it should be of interest to investors because it is within the Hua Hin city limits and is favoured by foreigners.
The average asking price for sea view condominiums in this area is around 141,670 baht per square metre. Sales prices have increased by 2 percent from the first half of 2021, with new sea view projects have an average asking price of 250,000 baht per square metre. The average asking price of condominiums without Non-seaviews is approximately 70,700 baht per square metre. Prices are relatively stable and decreased slightly by 0.1 percent from the first half of 2021, due to projects that still have more than 50 percent unsold units in the Cha-am area. Developers continue to offer promotions and discounts to close out the sales of such projects.
The overall Hua Hin condominium market in 2022 is expected to be relatively stable. This is because developers of condominium projects in the area are still assessing the situation and slowing down launches or the development of new projects. However, condos in the seafront area have relatively few units for sale and their selling prices tend to increase. Meanwhile, it may take some time to move the unsold units in the Cha-am area; some projects may experience a price drop given the age of the condominiums. Although the Covid-19 epidemic has had a negative impact on the condominium market in the Cha-am Hua-Hin Khao-Tao area, it also generated more interest in the area’s condominiums among the people in Bangkok. Such potential buyers would like to avoid epidemic situations like that which occurred in the past. This group of buyers see the area as a place where they prefer to ride out the epidemic rather than in being Bangkok. This results in more demand in the Cha-am Hua-Hin Khao-Tao condominium market, which is likely to expand further once the Covid-19 epidemic has passed.