Hua Hin and Cha Am, which most industry observers will admit have been quiet in recent months and years, is expected to become “hot” in response to Thai government plans to develop tourism in the area.
Real estate firm Plus Property, said it expects that the linking of land, sea, air and rail transportation methods will attract tourists over the long term.
The firm’s research division revealed that condominiums were the main sellers, and as much as 90 percent of purchases were made for own use as vacation homes.
It added that the Khao Tao and Khao Takiep location is currently the most popular among buyers because of its proximity to the Gulf of Thailand.
It said land prices here have shown yearly increases by as much as 15 percent, while condominiums have seen their prices grow by 41 percent during the past five years.
Rental yields, it said, stand at between 4 percent and 5 percent per annum.
Anukul Ratpitaksanti, the Managing Director of Plus Property, explained revenue from tourism is now one of Thailand’s primary revenue sources, and the government has laid down plans to foster the country’s capacity in sustainable tourism.
From the surveys of its research and development division, the real estate company discovered the Hua Hin and Cha am areas are a top location for vacation homes.
The main market In Hua Hin and Cha am remains the condominium market, and there were 12,592 condominiums on offer in 2018.
Most of the unsold units have been on sale for more than four years.
Average prices stood at THB 140,000 per sqm although beachfront projects within Hua Hin’s city area have price tags that reach THB 250,000 per sqm due to inflated land prices.
The top three countries of origin for the foreign tourists arriving in Hua Hin include the United Kingdom, Germany and Scandinavian countries (Denmark, Finland, Norway and Sweden).
Chinese tourists, it added, do not yet make up a major portion of foreign arrivals in Hua Hin but the growth of this group of tourists is significant. The number of Chinese visitors has been growing by an average of 10 percent per year.
“There is little worry over speculation within the condominium market in Hua Hin, because purchase demand for residency was as high as 90 percent,” Anakul added.