Plus Property finds condos taking number 1 market share at tourism cities

08 āļ˜.āļ„. 2017 āļ‚āđˆāļēāļ§āļŠāļēāļĢāļˆāļēāļāļžāļĨāļąāļŠāļŊ

Plus Property, the full-service professional property and facility management agency, reveals survey findings for 5 major tourism towns comprising Chiang Mai, Phuket, Pattaya, Hua Hin/Cha-am and Khao Yai. Condominiums were found to dominate 76% of market share, while detached homes rake in 19% of market share and town houses secure a 5% share. Growth in the property markets in the five locations has been attributed to the outstanding expansion of the tourism sector. The average sale of condo units stood at 80% of supply, from a total supply of around 100,000 units in the five locations. The annual rate of return stood at 6-8% in Phuket and 5-7% in Pattaya. Meanwhile the resale price in Khao Yai has been rising 5-6% per year whereas the resale price in the Hua Hin/Cha-am area jumped markedly in 2017, with beachfront projects experiencing a 10% price rise over the previous year and non-beach projects having seen a price rise of 19%. Current buyers in the said markets prefer to purchase their room for leisure use and for letting during high season.

Mr. Anukul Ratpitaksanti, Managing Director, Plus Property Company Limited, the full-service professional property and facility management agency, disclosed that Plus Property had conducted surveys on residences in five major tourism spots, namely Chiang Mai, Phuket, Pattaya, Hua Hin/Cha-am and Khao Yai. The surveys revealed that condominiums currently have the highest market share of the residential market, with a 76% (98,163 units) share. Detached homes were the second-most dominant, with a 19% share (24,925 units). Townhouses had the third highest market share, with 5% (5,998 units). The most recent surveys discovered that condominium projects at tourism hotspots continued to experience growth over the previous 2-3 years (2015-2017), with the average sale for all five spots having reached about 80% of a total supply of almost 100,000 units.

The warm response rate can be attributed to outstanding growth in the tourism sector and the fact that tourists taking long vacations prefer to rent condominiums for their stay. This translated into high rates of return for putting rooms up for rent. Although rooms in some cities can only be rented out during the tourism season, the higher rent – in comparison with other locales in general – attracts buyers who make their purchase for their own leisure stays and to rent out at certain times.

Those local to each of the hotspots buy the units to serve as their vacation home and to speculate on the price, which they deem will grow attractively in the future. Currently, the behavior of condominium buyers in tourism towns gravitate towards time sharing; the buyers use the room whenever they want and also generate income from letting – income which helps them pay for some of the expenses incurred from the purchase. This is especially notable for the Khao Yai and Hua Hin/Cha-am areas where almost 100% of tenants belong to the tourist group. Occupancy is high during October and February, and the average length of stay is 1.5 months. This model remains popular with buyers, who want the units for themselves on certain leisure occasions.


In the rental and resale market in Chiang Mai, condominiums of 30-60 square meters sizes fetch rents of between 10,000 and 25,000 baht per month. Resale prices of 30 sqm 1-bedroom units in some condominium projects stood at 75,000-85,000 baht per square meter or 2.0-2.5 million baht per unit. Said resale prices grew by 4-5% compared to the previous year. Prices are also expected to rise in the future, owing to large-scale investments that will support the growth of Chiang Mai. These include the Bangkok-Chiang Mai high-speed train project that will utilize the technology of Japan’s bullet trains, the Chiang Mai-Chiang Rai motorway and many other large infrastructure projects.

In Phuket, the popular studio and 1-bedroom condominium units with 30-32 square meters of space currently fetches between 10,000 and 18,000 baht of rent per month, for condos that are in the city; the lower and higher ends of the range depends on the length of stay. The rate of return stood at between 6 and 8 percent per year. Meanwhile, resort condos located next to beaches are popular only during the high season and fetch rents of between 50,000 and 70,000 baht per month, for a 4-5% average rate of return per year. The average price of condominium units in the entire market stood at 99,700 baht per square meter, having risen by 7%. At present, new condominiums have and average launch price of 130,000 baht per square meter; most of these are resort properties next to beaches.

In the Hua Hin/Cha-am area, resale condominium units in beachfront projects have an average price of 135,000 baht per square meter, a rise of 10% from the price at launch. Projects located away from the beach have an average resale price of 79,000 baht per square meter, a rise of 19% from the price at launch. In the rental aspect, 1-bedroom units at downtown projects that are also beachfront properties fetch 35,000-45,000 baht per month in rent. 2-bedroom units fetch 55,000-70,000 baht per month. 1-bedroom units at projects located away from the beach fetch 15,000-20,000 baht per month in rent whereas 2-bedroom units fetch 30,000-50,000 baht per month.

In Pattaya, the resale price for some projects in Central Pattaya stood at 110,000 baht per square meter. If put up for rent, a 1-bedroom unit of 30-35 square meter size generates 18,000-20,000 baht per month in rent for a rate of return of 6-7% per year. It was found that the average selling price has been increasing by about 5% per year.

In Khao Yai, the resale price of 1-bedroom units of 50-55 square meter sizes at some projects stood at 92,000 baht per square meter, or 4.6-5.2 million baht per unit. On average, the resale price has been increasing by 5-6% per year. However, condominium units in Khao Yai are generally put up for short-term rent during the high season (November-January).

“During 2016-2017, the condominium markets in Chiang Mai, Hua Hin/Cha-am and Phuket continued to grow because of demand from those wanting to purchase the rooms for vacation homes. In markets in Pattaya and Khao Yai were relatively stable due to the discharge of leftover supply, although expansion was observed in some locales and at some price points where purchasing power still existed. Nonetheless, we still see a tendency for future expansion, which will come about because of more concrete infrastructure developments. Some new supply has already started to enter the market here”, said Mr. Anukul.

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