Property developers in Hua Hin and Cha Am opted to maintain current prices during the first six months of 2018.
This was due to the market slowdown combined with a high number of unsold units in the market according to recent research from real estate firm Colliers International.
Despite Thailand showing economic improvements, Colliers reported that developers in Hua Hin and Cha Am remain unconfident about the long-term purchasing power of Thai buyers.
The main buyers in Hua Hin and Cha Am, as well as in the Pranburi area, are Thais who are looking to buy a house or condo as a second home.
Foreigners are still buying, but only in small numbers and nothing like the numbers seen during previous years.
Most property buyers are looking for small detached houses in the Hua Hin Inland area priced at no more than THB 5 million.
Some, it said, are staying in 10-year-old beachfront condos due to the lower prices.
Colliers said that most foreigners staying in Hua Hin and Cha Am are already retired, and have decided to live in Thailand because of the lower cost of living, convenience and safety.
The residential property markets in the area have seen declining trends since 2012.
Colliers noted that the condominium markets grew rapidly during 2011 and 2012 where more than 9,000 new units were launched each year.
Now, many unsold units remain in the market and developers have decided to postpone new projects to focus on selling their current unsold stock.
“All beachside cities around Thailand are facing tough times due to economic slowdown, directly affecting Thai people’s purchasing power and confidence,” said Colliers.
“Houses and condominium units in beachside cities are not the first priority for many buyers, because property in beachside cities are typically bought only as weekend or second homes.”