The residential markets in the Cha Am, Hua Hin and Pranburi areas have shown declining trends since 2012, and the situation doesn’t appear to be getting any better.
According to new research from real estate firm Colliers International Thailand, the condominium markets in these Gulf of Thailand locations grew rapidly between 2011 and 2012, seeing launches of more than 9,000 new units per year. These figures dramatically decreased from 2013 onwards however, many unsold units still remain in the market.
Approximately 390 new condominium units were launched during the first six months of 2017, according to Colliers, which is around 42 percent lower than during the final six months of last year.
Only two condominium projects were launched in the past six months as many developers decided to postpone new projects during this market slowdown. Instead they are focusing on trying to sell their current unsold units.
Some completed condominium projects in the Cha Am, Hua Hin and Pranburi areas were trying to entice buyers into transferring their units, but some buyers simply cannot transfer, Colliers noted.
For some it is due to their desire to speculate in the short term however, the most common problem according to the real estate firm is that many buyers are not ready to transfer, because their financial status is lower than bank’s expectation. Therefore, many completed units are still in the market and have been gradually absorbed during the past few months in 2017.
Only some completed projects which are in the best location, with good design and project concepts, and these are still attracting interest from buyers.
The Cha Am, Hua Hin and Pranburi residential markets still show lower growth in 2017, a trend that is predicted to continue into 2018, Colliers said.
Because of this, property developers need to wait until more unsold units are absorbed.