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The average selling price of newly launched units in the first half of this year was 91,000 baht per square metre, 23% higher than for new units launched in the second half of last year.
The average price of all condominium units on the market in the first half of this year was 69,700 baht/m², up 3% from the second half of 2013.
Cha-am posted the highest price increase, with 9% growth from the second half of last year. The Hua Hin coast area still has the highest selling prices, because most condominiums in the area have been completed and a scarcity of building sites makes land for new developments more costly.
Most of the new condominiums opened in the past year are aimed at middle-income consumers rather than more affluent buyers, as in the past. In addition, some new projects from listed developers are expected to be opened in the near future and will target middle-class buyers.
Thai buyers are the main target group, especially for the condominium market in the past one to two years; most are more focused on the coast area. Most Thai buyers are more interested in units selling for less than four million baht. This is because they are buying a second home and a condominium unit is their best choice.
Many foreign buyers in Cha-am, Hua Hin and Pranburi are from Europe, especially Scandinavia, Switzerland and the Netherlands. Most of them look for housing estates in the Hua Hin inland area with single-storey detached houses with a swimming pool and small green area.
Many foreign developers have completed small projects and sell directly to foreign buyers with leasehold contracts and rental programmes. The residential areas of Cha-am and Hua Hin have expanded farther to the southern part of Hua Hin and to the west of Phetkasem Road during the past few years.
Some small roads that are being expanded are becoming hot new locations for property development.
These include Hua Hin Soi 112 south of the town proper, and Hin Lek Fai sub-district in the hills west of Hua Hin, where the Department of Public Works and Town and Country Planning will expand the old town. n
Surachet Kongcheep is senior manager of research at Colliers International Thailand. He can be reached at surachet.kongcheep@colliers.com.
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