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7/31/2019 HuaHin, Cha Am and Pranburi Residential Half Year 2012
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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
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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
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Hua Hin, CHa am, and Pranburi residential marKet rePort |H1 2012
hiStorical SuPPly by ProPErty tyPE and yEar, h1 2012
currEnt SuPPly by location, h1 2012
Source : Colliers International Thailand Research
Source : Colliers International Thailand Research
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.
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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
Hua Hin, CHa am, and Pranburi residential marKet rePort |H1 2012
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hiStorical SuPPly by location and yEar, h1 2012
condominium unitS availablE for SalE, h1 2012
COLLIERS INTERNATIONAL | P. 5
Source : Colliers International Thailand Research
Source : Colliers International Thailand Research
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.
Hua Hin, CHa am, and Pranburi residential marKet rePort |H1 2012
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unitS launchEd
COLLIERS INTERNATIONAL | P. 6
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
Hua Hin, CHa am, and Pranburi residential marKet rePort |H1 2012
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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.
Source: Colliers International Thailand Research
Note: The year completion is expected by developers
cumulativE futurE SuPPly SchEdulEd to bE comPlEtEd from 2012 to 2014 by location
COLLIERS INTERNATIONAL | P. 7
Hua Hin, CHa am, and Pranburi residential marKet rePort |H1 2012
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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.
Source: Colliers International Thailand Research
Source: Colliers International Thailand Research
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 residential marKet rePort |H1 2012
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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
Hua Hin, CHa am, and Pranburi residential marKet rePort |H1 2012
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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
Source: Colliers International Thailand Research
hiStorical SuPPly by location and yEar, h1 2012
houSE, villa and PlotS of land availablE for SalE in thE markEt by location, h1 2012
Hua Hin, CHa am, and Pranburi residential marKet rePort |H1 2012
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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.
Source: Colliers International Thailand Research
houSing and PlotS of land in dEvEloPmEnt ProjEctS launchEd from 2005 to h1 2012 by location
Hua Hin, CHa am, and Pranburi residential marKet rePort |H1 2012
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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.
Source: Colliers International Thailand Research
Note: The year completion is expected by developers
Source: Colliers International Thailand Research
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
Hua Hin, CHa am, and Pranburi residential marKet rePort |H1 2012
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PricE
COLLIERS INTERNATIONAL | P. 13
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.
Source: Colliers International Thailand Research
Hua Hin, CHa am, and Pranburi residential marKet rePort |H1 2012
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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
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aPPEndix
Hua Hin, CHa am, and Pranburi residential marKet rePort |H1 2012
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For the purposes of research the area is divided into four zones that reect existing district boundaries.
Zoning
Hua Hin, CHa am, and Pranburi residential marKet rePort |H1 2012
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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.
Hua Hin, CHa am, and Pranburi residential marKet rePort |H1 2012
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Hua Hin, CHa am, and Pranburi residential marKet rePort |H1 2012
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information herein should be directed to the Research Department at the number indicated above. This document has
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