Resort condo prices rising

resort condos
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Resort condo resale prices in Chiang Mai, Phuket, Hua Hin, Cha-Am and Khao Yai are rising.

A new survey has revealed that condos account for 76 percent market share, while detached homes rake stand at 19 percent and town houses at 5 percent share.

Growth in the property markets in these locations, according to real estate agency Plus Property, has been attributed to the outstanding expansion of the tourism sector.

Average sales of resort condo units stood at 80 percent from total supply of around 100,000 units in the highlighted locations.

The annual rate of return stood at between 6 percent and 8 percent in Phuket and between 5 percent and 7 percent in Pattaya.

Resale resort condo prices in Khao Yai have been rising by between 5 percent and 6 percent per year.

Resale prices in Hua Hin and Cha-am area jumped markedly during 2017, with beachfront projects seeing a 10 percent price rise year-on-year. Non-beach projects saw a price rise of 19 percent.

Current buyers in the resort condo markets prefer to purchase their condos for leisure and for letting during high season, Plus Property reported.

Anukul Ratpitaksanti, Managing Director of Plus Property, said: “Currently, the behaviour of resort condo buyers gravitates towards time sharing; buyers use the condo whenever they want and generate income from letting.

This income, he said, helps pay for some expenses incurred in the purchase.

This is especially true for the Khao Yai and Hua Hin/Cha-am areas, where almost 100 percent of tenants are tourists, according to Plus Property’s research.

In the rental and resale market in Chiang Mai, condominiums of between 30 sqm and 60 sqm saw rents of between THB 10,000 and THB 25,000 per month. Resale prices of 30 sqm, one-bedroom units in some condominium projects stood at between THB 75,000 per sqm and THB 85,000 per sqm – equal to between THB 2 million and THB 2.5 million per unit.

Resale condo prices grew by between 4 percent and 5 percent compared with the previous year.

Plus Property said resort condo prices are expected to rise in the future owing to large-scale investments that will support growth in Chiang Mai.

In Phuket, the popular studio and one-bedroom condominium units of between 30 sqm and 32 sqm currently fetch between THB 10,000 and THB 18,000 baht rentals per month, depending on the length of stay.

The rate of return stood at between 6 percent and 8 percent per year. Eesort condos located next to beaches are popular only during the high season, and fetch between THB 50,000 and THB 70,000 per month, with a 4 percent to 5 percent average rate of return per year.

The average price of resorts condos in Phuket’s entire market stood at THB 99,700 per sqm, a rise of 7 percent year-on-year.

At present, new resort condos in Phuket have average launch prices of THB 130,000 baht per sqm. Most of these are resort properties next to beaches, Plus Property discovered.

In Hua Hin and Cha-am, resale condo units in beachfront projects have average prices of THB 135,000 per sqm, a rise of 10 percent since launch.

Projects located away from the beach have average resale prices of THB 79,000 per sqm, a rise of 19 percent from launch.

Rentals of one-bedroom units in downtown projects also on the beachfront fetch between THB 35,000 and THB 45,000 per month. Two-bedroom units fetch between THB 55,000 and THB 70,000 per month.

One-bedroom units at projects located away from the beach fetch between THB 15,000 and THB 20,000 per month in rentals, while two-bedroom units fetch between THB 30,000 and THB 50,000 per month.

In Pattaya, resale price for some projects in Central Pattaya stood at THB 110,000 per sqm.

A one-bedroom unit of between 30 sqm and 35 sqm generates between THB 18,000 and THB 20,000 per month in rent, for a return of between 6 percent and 7 percent per year.

Plus Property found the average selling price for resort condos in Pattaya has been increasing by about 5 percent per year.

In Khao Yai, the resale prices of one-bedroom units of between 50 sqm and 55 sqm at some projects stood at THB 92,000 per sqm, or between THB 4.6 million and THB 5.2 million baht per unit.

On average, resale prices have been increasing by between 5 percent and 6 percent per year however, resort condo units in Khao Yai are generally put up for short-term rent during the high season.

Anakul added: “Between 2016 and2017, the resort condo markets in Chiang Mai, Hua Hin, Cha-am and Phuket continued to grow due to demand from those wanting to purchase the rooms for vacation homes.”

“Markets in Pattaya and Khao Yai were relatively stable due to the discharge of leftover supply, although expansion was observed in some locations 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,” he concluded.

Andrew Batt
The author of this article is Andrew Batt, the founder and editor of Andrew has been writing about property and real estate issues in Thailand and Southeast Asia for more than 10 years. He has worked for PropertyGuru Group, DDproperty, Dot Property Group, Hipflat and AsiaRents. He has also produced content for leading Thailand property developers and real estate agencies.

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