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Many condominium projects were completed in the three beach resort towns south of Bangkok over the past few years, some of which were gradually completed from 2012-13. A total of 1,390 units were completed and registered at the Land Department last year, the highest number on record. Another 870 units were completed and registered in the first half of this year, bringing the total existing supply of condominiums to 11,250 units.
The Hua Hin coast area had the highest share of the condominium market in 2011 and has continued to grow in the first half of this year. However, the completion of some large projects in the second half of this year or early next year in Cha-am will push the total number of units there higher than in the Hua Hin coast area.
Of the 730 units launched in the first half of this year, 220 were in Cha-am, 180 in the Hua Hin coast area and 325 in Pranburi. The number of new openings declined steadily from the second half of last year because of political and economic uncertainty and the fact that many units were still available on the market.
Nearly 5,000 units are scheduled to be completed in the second half of this year in Cha-am, and another 6,430 next year, reflecting the completion of some very large projects, some with more than 1,000 units, in the past few years. Some of these units were scheduled to be completed already but the residential building industry continues to experience a shortage of labour, and completion dates often get pushed back.
Demand: The average take-up rate in the three communities at the end of first-half 2014 was 74%, a little higher than in the previous six months. The upturn reflects an improvement in confidence after the coup among buyers who had postponed purchasing decisions in the last quarter of last year and the first few months of this year.
The average take-up rate in Cha-am and the Hua Hin inland area was 79%, higher than the overall market average, reflecting lower selling prices that have attracted many buyers. The average price of properties in the Hua Hin coast and Pranburi areas is higher than in other locations, resulting in a lower take-up rate.
Cha-am and Hua Hin are becoming prime locations for second homes, especially for Bangkok residents, given their proximity to the capital. In addition, more supporting facilities and attractions have been developed during the past few years, such as community malls, golf courses and water parks.
More shopping malls and water parks are still being built and scheduled to be completed this year and next.
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