HuaHin, Cha Am and Pranburi Residential Half Year 2012

7/31/2019 HuaHin, Cha Am and Pranburi Residential Half Year 2012

1/18

Hua Hin, CHa am, and Pranburiresidential marKet rePort

thailand

www.es..

Hua Hin, Cha Am, and Pranburi

Residential Market

ExEcutivE Summary

m h 360 w pp h H H, Ch a P h

rst six months of 2012.

Approximately 30 units of landed development units were launched in H1 2012.

The condominium market was the most fashionable for residential development in the area, with

more than 98% of the newly-launched units in H1 2012 being condominiums.

Most condominium developers were focusing more on the Hua Hin Coastal area, with nearly 77%

of all newly-launched units in H1 2012 located in the area.

Most buyers in the Cha Am, Hua Hin and Pranburi areas are Thai, especially in condominiums and

housing development projects, while most foreigners purchase in vil la projects.

The average take-up rate of all property types in the Cha Am, Hua Hin and Pranburi areas is

approximately 61%, with 66% for landed development projects and 61% for condominiums.

The average price of all condominium projects in the Cha Am, Hua Hin and Pranburi areas is more

similar to H2 2012, while increasing by around 2 - 5% for housing and villa development

projects.

H1 2012 | residential


2/18

Hua Hin, CHa am, and Pranburi residential marKet rePort |H1 2012

COLLIERS INTERNATIONAL | P. 2

hua hin, cha am, and Pranburi rESidEntial markEt

More than 360 units were completed in the rst half of 2012, and the

total number of residential units is approximately 11,610 units. The units

added in the rst six months of 2012 constitute approximately 75% of

the total for all of 2011. Cha Am, Hua Hin and Pranburi began to grow

dramatically in 2003, adding more than 800 units per year and Thai

buyers became a very strong force in the market due to the proximity to

Bangkok.

The Cha Am area was still the most popular for residential projects,

especially from 2005 until the rst half of 2012, when there weresignicant increases compared to the past. From 2009, the Hua Hin

Inland area signicantly dropped in popularity from the past, due to the

condominium market becoming the most fashionable. Nearly 100% of all

supply was located outside of the Hua Hin Inland area, which was the

main location for house and villa development in Hua Hin. In addition, the

global economic crisis of the past few years directly aected the foreignmarket, which is the main target for houses and villas in the Hua Hin

Inland area, so developers postponed the launches of their new projects

in this area.

Source: Department of Land and Colliers International Thailand Research

Note: The numbers above include condominiums, housing and villas

Source : Colliers International Thailand Research

hiStorical SuPPly of condominiumS, landEd ProPErty unitS and PlotS of land by yEar, h1 2012

hiStorical SuPPly by location and yEar, h1 2012


3/18COLLIERS INTERNATIONAL | P. 3


hiStorical SuPPly by ProPErty tyPE and yEar, h1 2012

currEnt SuPPly by location, h1 2012



Condominiums represent, by far, the main source of supply in the Hua

Hin, Cha Am and Pranburi areas. Landed development only really took

o in 2006 after developers looked at land away from the coast and on

the hillsides, targeting the foreign market for villas and aordable second

homes for Thais. Coastal locations have always been most sought after

and therefore high land prices meant that condominiums became the

most feasible option.

The total supply of residential units in Hua Hin, Cha Am and Pranburi is

approximately 11,610. The Cha Am area contains the highest number

with approximately 4,330 units, while nearly 3,800 units and nearly

3,000 units are located in the Hua Hin Coastal and Inland areas,

respectively, with only around 520 units in Pranburi.



condominium markEt

SuPPly

Approximately 360 units were completed and registered at the

Department of Land in the rst half of 2012. The total current supply

amounts to approximately 7,980 units. The condominium market began

to grow again after the worst three-year period, with nearly 500 units

each year.

Source: Department of Land, Colliers International Thailand Research

hiStorical SuPPly by yEar, h1 2012



5/18


condominium unitS availablE for SalE, h1 2012




The total supply of condominium units is approximately 7,980 with

around 47% in the Hua Hin Coastal area. Many developers were focusing

more on the Cha Am area in 2011 and 2012 and some huge projects

were launched in the Cha Am area, so in the next two to three years, Cha

Am area will represent the biggest share of the condominium market. In

addition, the limited land availability in the Hua Hin area was the major

obstacle to condominium development there.

There are approximately 6,900 condominium units available for sale out

of a total of around 17,500 at more than 55 projects. The highest number

in Cha Am is at large projects, with a total of nearly 6,000 units launched

in the second half of 2011.



6/18

unitS launchEd


Approximately 1,420 units were launched in the Cha Am area during the

rst half of 2012 or around 46% of the total units launched in 1H 2012.

This was due to one big project being launched with more than 1,000

units in the rst half of 2012.

Source: Colliers International Thailand Research

condominium unitS launchEd from 2005 to h1 2012 by location



7/18

futurE SuPPly

More than 4,150 units are scheduled to be completed in the last six

months of 2012 in all locations, with around 2,240 units in the Hua Hin

Coastal area, 950 units in the Hua Hin Inland area, 930 units in Cha Am

and only approximately 30 units in Pranburi.

The Hua Hin Coastal area is the preferred location now for condominiums,

due to its status and increasing range of entertainment options compared

to Cha Am. Many Thais, usually from Bangkok, buy units in Hua Hin as a

location for a second home.

A large-scale project in the Cha Am area is scheduled to be completed

in 2015 with nearly 6,000 units. Many listed developers were focusing

more on the condominium market outside Bangkok, Cha Am and Hua Hin

also the one of their target location in the future.


Note: The year completion is expected by developers

cumulativE futurE SuPPly SchEdulEd to bE comPlEtEd from 2012 to 2014 by location





The average take-up rate at the end of H1 2012 was approximately 61%,

similar to that in the second half of 2011, although more than 3,000 units

were launched in the rst half of 2012.

The take-up rate in the Hua Hin Inland area was signicantly higher than

the other areas at more than 74%, compared to 62% for the Pranburi

area. This was due to two popular projects from Sansiri Plc. where a

total of approximately 560 units were almost sold out after the ocial

launch in April 2012. The total supply in the Hua Hin Inland area was

only 2,120 units or 12% of the total supply of all locations, so the average

take-up rate in the Hua Hin Inland area was signicantly higher.

The average selling price of all locations at the end of 2012 is

approximately THB61,820 / sq m, similar to the previous six months.

The average selling price in the Hua Hin Coastal area is the highest at

more than THB70,000 per sq m, but dropped from the second half of

2011 by around 5%, due to some new projects being launched in H1 2012

at lower prices. The highest prices in the Hua Hin Coastal area are at

some completed projects which still have units available for sale.



takE-uP ratE of all condominium ProjEctS in thE markEt, h1 2012

avEragE SElling PricE of condominium unitS availablE for SalE in cha am, hua hin and Pranburi

dEmand

PricE




hua hin, cha am and Pranburi markEt for houSing and PlotS of land in dEvEloPmEntS

SuPPly

Note: This report consists of research into multiple housing developments. Individual housing is excluded.

A surge in supply in 2006 and 2007 can be attributed to the eect that

the tsunami in Phuket had on the real estate market in other resorts.

After the devastation on 26 December 2004, many developers, mostly

specialising in landed property, turned their attention to other resort

markets, especially the Koh Samui and Hua Hin areas. The eect was a

considerably increased supply within a few years, and this came at the

start of the revival of the Phuket market and the beginning of the global

nancial crisis. The main target groups of house and villa development

in the Cha Am, Hua Hin and Pranburi areas are local Thais and foreign

buyers. The global economic crisis of the past few years and the debt

crisis in the Eurozone aected the foreign market in Thailand including

the Cha Am, Hua Hin and Pranburi areas. In addition, the Cha Am, Hua

Hin and Pranburi areas are not main business or education cities, so

there is limited demand from local Thais for landed development.

Developers were postponing the launches of new landed development

projects and trying to sell their existing projects.

Source: Department of Lands and Colliers International Thailand Research

hiStorical SuPPly by yEar, h1 2012




The Hua Hin Inland area contains the lions share of housing and plots of

land in development, due to the high land costs in the coastal areas

making it unsuitable for landed development projects. There was a surge

in supply from 2003 to 2009 due to condence in the market following

the recovery from the Asian Financial Crisis and the eects of the

tsunami in Phuket at the end of 2004 when many developers came to

the Hua Hin Inland area for their new development location. More than

2,300 units launched from 2004 to 2009 are still available now. In

addition, the US economic crisis and EU debt crisis aected the wealthy

people, so villa developers postponed the launches of their new projects

aimed at foreign buyers.

The Hua Hin Inland area contains, by far, the greatest number of available

housing units located away from the coast to the west of PhetkasemRoad (Highway 4), which creates a boundary between the Coastal and

Inland areas. Many cheaper units are located on the hillside overlooking

the coast. The high numbers in the Hua Hin Inland area mean that there

are many units waiting to be absorbed by the market and that older,

unmaintained units may now be dicult to sell. In addition, some projectsstopped construction and will restart again only after the buyer signs an

agreement.

Source: Department of Lands and Colliers International Thailand Research



houSE, villa and PlotS of land availablE for SalE in thE markEt by location, h1 2012




unit launchEd

Nearly 30 units were launched in the rst six months of 2012, a dramatic

drop from the previous year. This was due to the decrease in demand for

houses and villas during the past few years.

In 2008, 44% of the units were launched, especially in the Hua Hin

Inland area. This occurred at the same time as the onset of the Global

Financial Crisis and a fall in European exchange rates. This has meant

that many units remain unsold or that plots of land still remain vacant.

Developers often build to order and the slow take-up means that many

projects can resemble on-going construction sites. This will likely remain

the situation for some time to come, something which is not in the

interests of existing tenants and which presents developers with a

dicult dilemma.

During the past two years and up until last year, most developers were

focusing more on condominium development along the Coastal area, so

the number of new units launched in 2011 decreased from 2010 by

nearly 11%.

Nearly 30 units were launched in the rst six months of 2012 and

approximately 56% were developed by SC Asset Corporation Plc. The

Crest Santora Hua Hin is the rst project of SC Asset in the Hua Hin

area, comprised of condominiums and villas.


houSing and PlotS of land in dEvEloPmEnt ProjEctS launchEd from 2005 to h1 2012 by location




Nearly 1,070 units were scheduled to be completed in 2012 in all

locations, and 85% are located in the Hua Hin Inland area. The completion

date depends on the developers, due to some housing projects in Cha

Am and Hua Hin being made to order, although some developers will

start construction as soon as buyers sign an agreement.

The take-up rate in the Hua Hin Coastal area was the highest, but there

are only around 255 units in this area. Approximately 64% have been

taken up in the Hua Hin Inland area from a total of around 2,000 units,

and 60% in the Cha Am area from a total of around 180 units. The take-

up rate in the Pranburi area was higher than 65%, due to there being

only 100 units there. More than 1,130 units were sold in the Hua Hin

Inland area, and although there is no beachfront, many have proved

popular due to the price, a sea view location, the cooler climate in the

hills and easy access to golf courses.

Foreigners are the major target group of villa development in the Hua Hin

Inland area, but their numbers have been decreasing over past few

years, due to the economic crisis in the US and EU. While local Thai

demand has increased in the Hua Hin Inland area, most of them are

focusing more on housing development projects only and are not

interested in villa projects, so the take-up rate in the Hua Hin Inland area

is still similar to the past year.


Note: The year completion is expected by developers


cumulativE futurE SuPPly SchEdulEd to bE comPlEtEd from 2012 to 2014 by location

thE takE-uP ratE for all ProjEctS in thE markEt by location, h1 2012

futurE SuPPly

dEmand



13/18

PricE


avEragE SElling PricE by location of houSES and villaS availablE for SalE, h1 2012

The average selling price in the Hua Hin Inland area is lowest, although

most villa development projects were located in the Hua Hin Inland area.

A lot of the mid-range to low-end housing market is also in this area. The

prices at some projects in the Hua Hin Inland area are starting from

THB1.1 million for townhouses and up to THB25 million for villas.

The average price in the Hua Hin Coastal area is highest, due to someluxury projects being launched with prices from around THB20 to 40

million for beachfront villas.

The average selling price in the Hua Hin Inland area is lower than in the

Hua Hin Coastal and Cha Am areas, due to many of the housing projects

in the area being located very far from the coast and consisting of only

one storey with a small plot of land suitable for two people.

There is a great dierence in the selling prices in Cha Am at the high and

low ends of the market. At the low end are units located on low-lying

land away from the coast with relatively small plots and building sizes,

while at the high end, are villas located on the coast in what are usuallymixed condominium / villa projects that command a premium.





The condominium market in the Cha Am, Hua Hin and Pranburi areas in

the rst half of 2012 still continues to grow from the previous year. Many

developers, especially listed developers, launched their new projects in

the area while some other local developers planned to launch their new

projects in the second half of this year. Newly-listed developers werecoming to the market and looking for investment opportunities in the

area especially in the condominium market. Since landed development

projects are still out of the buyers focus, developers postponed the

launches of their new projects during the past year.

The coastal area is the most fashionable area for condominium

development in the market, but there is limited availability of land at a

reasonable price, so some developers have moved their focus to

Phetkasem Road and the Hua Hin Inland area. The mid-range market

seems to be the new trend for condominium projects in the future. This

is due to most Thai buyers looking for their second home with a price not

over THB3 - 4 million or not over THB90,000 per sq m.

Since the Hua Hin city area is very busy and has trac jams every

weekend, especially during the long weekends, many Thais prefer to stay

in the Cha Am area to escape the congestion. The Cha Am area has

become the new location for a second home because it is more peaceful

and convenient, although it still lacks supporting facilities. In addition,there are many available plots of land along the coast and Phetkasem

Road at lower prices than in the Hua Hin area. For all of these reasons,

developers are focusing more on the Cha Am area. In the Pranburi area,

the beach is more tranquil and exclusive which is most appropriate for

resort development, although land prices are still reasonable. But due to

the lack of support facilities and the long distance to Hua Hin city, there

were less projects launched during this year.

outlook




aPPEndix




For the purposes of research the area is divided into four zones that reect existing district boundaries.

Zoning




hua hin - coaSt

Hua Hin is the northernmost district of the province of Prachuap Khiri

Khan. It came to prominence in 1922 due to the presence of a summer

palace. Since then it has become a magnet for tourists, who were

originally predominantly Thai but are now increasingly foreign. The

coastal area is dened as being east of Highway 4. This area contains a

vibrant mix of higher-end hotels and restaurants and represents by far,the main area for entertainment for the whole of Hua Hin, Cha Am and

Pranburi.

hua hin - inland

The area to the west of Highway 4 and away from the coast can be

described as the rst low-lying land oering cheaper accommodation

options, while the hillside further west can provide coastal and

mountainous scenery as well as cooler weather. Many villa developments

have been constructed and are popular with foreigners, especially

Scandinavians.

cha am

This district is in Phetchaburi province and borders Hua Hin to the north.

In general, Cha Am ows at a dierent pace from its better-known

neighbour. It has a more rustic feel and is very popular with Bangkok

residents taking a weekend break, as prices are generally lower and

there is more of a local atmosphere. A number of higher-end

establishments have sprouted up especially in the south, on the border

with Hua Hin.

Pranburi

Highway 4 snakes away from the coast as it leaves Hua Hin, rendering

the coastal area of Pranburi, the district south of Hua Hin, more isolated.

The beaches are therefore, more tranquil and a feeling of exclusivity has

lead to the development of a number of high-end resorts along the beach

road. While coastal land is at a premium in Hua Hin, Pranburi oers more

available land and could be the area for higher-end developments.

However, the further south the road goes, the longer it takes to travel to

and from Bangkok, making it a less convenient weekend getaway.



18/18


colliErS intErnational thailand

managEmEnt tEam

HUA HIN OFFICE

Sunchai Kooakachai | Senior Manager

PROJECT SALES & MARKETING

Monchai Orawongpaisan | Associate Director

RESIDENTIAL SALES & LEASING

Napaswan Chotephard | Manager

researCH

Tony Picon | Associate Director

Surachet Kongcheep | Senior Manager

OFFICE & INDUSTRIAL SERVICES

Narumon Rodsiravoraphat | Associate Director

RETAIL SERVICES

Asharawan Wachananont | Associate Director

ADVISORY SERVICES | HOSPITALITY

Jean Marc Garret | Director

ADVISORY SERVICES

Napatr Tienchutima | Associate Director

REAL ESTATE MANAGEMENT SERVICES

Prasert Saiphrawan | Senior Manager

INVESTMENT SERVICES

Nukarn Suwatikul | Associate Director

Wasan Rattanakijjanukul | Senior Manager

VALUATION & ADVISORY SERVICES

Phachsanun Phormthananunta | Director

Wanida Suksuwan | Associate Director

PATTAYA OFFICE

Mark Bowling | Senior Sales Manager

Supannee Starojitski | Senior Business Development

Manager / Oce Manager

rESEarchEr:

thSurachet KongcheepSenior Manager | Research

Email [email protected]

This report and other research materials may be found on our website at www.colliers.co.th. Questions related to

information herein should be directed to the Research Department at the number indicated above. This document has

been prepared by Colliers International for advertising and general information only. Colliers International makes no

guarantees, representations or warranties of any kind, expressed or implied, regarding the information including, but

not limited to, warranties of content, accuracy and reliability. Any interested party should undertake their own

inquiries as to the accuracy of the information. Colliers International excludes unequivocally all inferred or implied

terms, conditions and warranties arising out of this document and excludes all liability for loss and damages arising

there from. Colliers International is a worldwide aliation of independently owned and operated companies.

Accelerating success.

522 oces in 62 countrieson 6 continentsA leader in real estate consultancy worldwide

2nd most recognized commercial real estate brand

globally2nd largest property manager

1.25 billion square feet under management

Over 12,300 professionals

Colliers international tHailand:

Bangkok Ofce17/F Ploenchit Center,2 Sukhumvit Road, Klongtoey,Bangkok 10110 Thailand

tEl +662 656 7000

fax +662 656 7111Email [email protected]

Pattaya Ofce519/4-5, Pattaya Second Road (Opposite Central FestivalPattaya Beach), Nongprue, Banglamung, Chonburi 20150

tEl +6638 427 771

fax +6638 427 772

Email [email protected] Hin Ofce27/7, Petchakasem Road, Hua Hin,Prachuap Khiri Khan 77110 Thailand

tEl +6632 530 177

fax +6632 530 677Email [email protected]

Best Agent (Eastern Seaboard) 2010Best Bangkok Agent 2010

Best Agency Deal 2011Best Commercial Agent 2011

Best Property Management Company 2011Best Property Consultancy 2011Best Residential Agent (Resort) 2011

Thailand Property Awards

Documents

HuaHin, Cha Am and Pranburi Residential Half Year 2012