Plus Property Sees Bright Prospects for Hua Hin Condos with Sales at 81% for Near-Beach Zone.
25 ต.ค. 2019
ข่าวสารจากพลัสฯ
Plus Property, the full-service professional property and facility management agency, revealed findings from the first half of 2019survey of the Hua Hin, Cha-am area which pointed to growth continuation in the property market. With 1,000-2,000 units of new supply entering the market each year, total supply stood at 11,700 units and total sales was 76%.
The average selling price was 90,000 baht per square metre. The Hua Hin area stood out, and this was especially true for the near beach zone where the number of units on offer made up 70% of the entire area’s supply and where the sales ratio – at 81% – was the highest.
The near beach zone offered good proximity to the beach and residents were able to reach the beach, shopping malls and hospitals on foot. The zone also sported selling prices that were almost 30% lower than those at the beachfront zone.
Hua Hin will benefit from the development of the southern high-speed rail line and the expansion of Hua Hin Airport; both factors are expected to create opportunities for attracting more tourists, whose numbers were growing by 6% per year.
Land and property prices also have prospects of appreciating in the future in response to infrastructure development by the public sector. Owing to the real estate stimulation measure, condos priced no more than 3 million baht now make up 75% of the Hua Hin market.
Ms. Suwannee Mahanarongchai, Deputy Managing Director, Business Strategies and Asset Management, Plus Property Company Limited, the full-service professional property and facility management agency, revealed findings from a survey of the Hua Hin, Cha-am locality during the first half of 2019.
The survey by PLUS's research and development division determined there was a total supply of about 11,700 condominium units and a sales ratio of 76%. The average selling price for all areas within the locality stood at 90,000 baht per square metre.
Over the previous 3 years, some 1,000 to 2,000 units of new supply have been entering the market each year and more than 50% of said supply was located within Cha-am, where property projects generally had larger spaces to work with than their counterparts in Hua Hin
Nonetheless, the sales ratio in Hua Hin outperformed that of Cha-am, as the former location possessed a complete array of amenities that included leading hospitals, large malls, community malls, water parks and golf courses. There were 3 zones within Hua Hin where condominiums were being developed – the beachfront zone, the near beach zone and the hillside zone.
The near beach zone was the most popular of the three because of less expensive prices than the beachfront zone and the relative closeness to the sea when comparison was made with the hillside zone. During this round of survey, there were about 5,200 units of condos on offer in Hua Hin. Most of the supply – some 3,700 units or roughly 70% of supply available from condominium projects in Hua Hin – was clustered in the near beach zone.
The zone also possessed the highest sales ratio of 81%. Average selling price was roughly 88,000 baht per square metre, almost 30% lower than the average selling price within the beachfront zone where the figure stood at roughly 120,000 baht per square metre.
Over the previous 2 years, a total of 4 projects were launched within the near beach area; 3 of the projects were situated inside Hua Hin's city area and were adjacent to Phetkasem Rd. This kind of location meant that commutes could be made very easily. Residents would be able to reach the beach, shopping centres and hospitals all on foot, while prices were also more affordable than at the beachfront zone.
The recent real estate stimulation initiatives for properties priced no more than 3 million baht include a measure to reduce the ownership transfer fee and mortgage registration fee, and a home loan measure from the Government Housing Bank. As a result, condominiums priced at or below 3 million baht now make up 75% of all the condominium units on offer in Hua Hin.
Said condos (3,900 units) stand to gain from the stimulation measure. La Casita, a development project whose starting price was 2.19 million baht, is among the projects that will receive a windfall.
One positive factor contributing to sustained interest for condominiums in Hua Hin was the fact that the locality remains one of the most popular holiday sites for visitors from Bangkok, due to the short travel time between the two places. Properties here are attractive for Thai holidaymakers who find appeal in weekend excursions.
Over the previous 5 years, the number of Thai and foreign visitors to Hua Hin has been rising by about 6% per year. There is also a tendency for an increase in arrivals to Hua Hin in the future, due to the positive factors of high-speed rail development and an expansion to the airport. In addition, more airlines are launching international, direct flights into Hua Hin and this is expected to contribute to additional foreign tourist arrivals.
"Hua Hin is an area with future growth prospects because of the government's plan to develop a high-speed rail link for the South. A high-speed rail line passing through Hua Hin is the first phase of the plan to develop the southern high-speed rail service. Trains will run from Bang Sue to Hua Hin, covering a total distance of 211 kilometres and 4 stations.
The travel time will take just 1 hour and 17 minutes in all. The said first phase is included in the government's medium-term development agenda, and the plan is for service to commence in 2027. Once in service, train rides to Hua Hin will take less than half the time it now takes to reach the town by car.
Greater clarity from the government related to this development agenda will lend to a greater chance for an increase in tourist numbers. In turn, positive effects will be had on the property market in Hua Hin in the future and prices of properties in Hua Hin will rise as a result.
There will be greater opportunities to generate income from letting the rooms, due to the increase in tourist numbers. Therefore, purchasing a property in Hua Hin may be viewed as legitimate long-term investments regardless of whether the purpose was to buy it as a vacation residence for real demand or for future investment," said Suwannee.
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