Developers Flocking To Hua Hin

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Developers flocking to Hua Hin

Somluck Srimalee

The Nation

Projects worth more than Bt50 billion are expected to be launched this year

HUA HIN: -- Developers are lining up to launch residential projects in Hua Hin this year worth more than Bt50 billion and totalling about 8,000 units.

The projects are targeted to be delivered to customers from 2013-2015, according to a survey by The Nation.

Condominiums are popular projects in this location, with prices ranging from Bt2 million to more than Bt20 million per unit.

Domestic customers are the main targets, as Hua Hin's proximity to Bangkok - about two hours by car - makes it attractive for either a second home or a vacation residence.

However, land for development is limited, especially close to the beach. As a result, the prices of land near Hua Hin's beaches have increased on average by 10-20 per cent a year.

Investment exceeds Bt50 billion

One example of the more than Bt50 billion worth of projects being launched in Hua Hin this year is a Baan Ratchaprasong condominium complex, Energy Hua Hin. Worth Bt10 billion, it will offer 6,000 units priced between Bt1.7 million and Bt7 million. The eight-storey project will combine 33 buildings. There will also be a 177-room resort hotel in the same location. Construction will start this year and is targeted for completion by 2014 or 2015.

Sansiri, which has more than 10 years of experience developing condos in the Hua Hin area, has introduced its latest project, Chelona, at Khao Tao beach. The Bt1.5-billion project has 174 units. It is a low-rise project, with four four-storey buildings and one with seven storeys. The project is already under construction and will be completed by October next year.

SC Asset Corporation plans to launch a condominium project worth about Bt2 billion in Hua Hin in March, and in the fourth quarter will launch a detached-house and townhouse project there.

SC Asset chief operating officer Kree Dejchai said demand for second homes in Hua Hin was growing strongly, and the company had succeeded in buying undeveloped land near a long beach. As a result, it decided to expand make its first upcountry investment in the resort city.

Casa Ville Co, a subsidiary of Quality Houses, plans to launch a detached-house project worth Bt460 million in the Cha-am-Hua Hin area in the current quarter.

In the same area, Issara United, a joint venture between Charn Issara and ICC International, a subsidiary of Saha Group, has introduced a condominium project worth Bt2 billion called Baan Thew Thalay. It plans to develop the second phase of the project in the second quarter after the first phase reaches sales worth 40 per cent of total project value. The project will also feature a community mall, a hotel, and low-rise residences, both detached houses and townhouses. Worth at least Bt10 billion, the whole project will take five years to complete.

Several listed property firms also have projects under construction and targeted for completion this year or next. Major Development introduced a Bt3.3-billion luxury condominium project, Marrakesh Hua Hin, last year. Condos have already been transferred to customers and the project has sold 80 per cent of total value. The project comprises 300 condominium units and a 76-room hotel.

Major Development managing director Suriya Poonwaraluk said demand for homes in Hua Hin was enjoying strong growth. As a result, the company plans a new project there this year after completing the transfer of Marrakesh Hua Hin to its customers.

Sansiri also introduced a condo project in Hua Hin last year, Baan San Kraam, which sold out within two days, before it launched Chelona in the first quarter of this year.

Land prices rising

The huge investment in residential developments in Hua Hin has driven up land prices by about 10-20 per cent a year. Land near the beach now averages Bt50 million per rai (about Bt310 million per hectare), up 11 per cent from Bt45 million per rai last year.

Land near Cha-am beach sells for Bt30 million to Bt35 million per rai, an increase from between Bt25 million and Bt30 million last year.

Knight Frank Thailand's association director of research and valuation, Risinee Sarikaputra, said demand in the Hua Hin area would continue to rise.

"The flood that hit Bangkok and its suburbs last year changed home-buyers' behaviour. They want to buy a second home in a tourist destination, especially Hua Hin, which is only two hours by car from Bangkok," she said.

-- The Nation 2012-02-27

[BEENTHEREDONETHAT]

interesting that the author of this article does not know Hua Hin from Cha Am, most of the development refered to is in the Cha Am area 20 minutes from Hua Hin.Construction is Cha Am is booming, wonder where all the people to buy these thousands of unit are coming from?

[thaiwanderer]

'Knight Frank Thailand's association director of research and valuation, Risinee Sarikaputra, said demand in the Hua Hin area would continue to rise'

Depends on a lot of things not least convincing stupid potential buyers with pure advertorial pieces like this.

[MaiChai]

If they build loads of condos and houses in and around Hua Hin for Bangkokians wanting to escape the city, do you think the area will remain a nice place? Just occurs to me that all nice places in Thailand that got 'developed' turned into horrible concrete jungles? Best thing people can do is keep their money and just visit on holiday? Visit, just leave your footprints and go home is the ecological way to keep places beautiful?

Edited February 27, 2012 by MaiChai

[Poke]

Hua hin looks more like Patong every day. It is a shame. Used to be a nice place. There will not be many nice beach places left soon. Strange culture that destroys its own home.

[wpcoe]

I believe Hua Hin now has laws forbidding the construction of any more high-rises. Not sure if it applies to Cha-Am.

[mark5335]

I believe Hua Hin now has laws forbidding the construction of any more high-rises. Not sure if it applies to Cha-Am.

Same law applies in Cha-am. eg, 2 new projects underway in Cha-am, Baan San Kraam & The Energy, are both low rise projects.

[Tanaka]

8 storey buildings are not high risers?? And 33 of them. That, to me, sounds like being a proper concrete ghetto. Yuk.

[hhfarang]

The new law as, I understand it, does not prevent high rises altogether; it just prevents them on or very near the beach. The further from the beach, the taller you can build. That's why all the big condos and hotels built near the beach in recent years start with low rise buildings on the beach and then end up stair-stepped to higher buildings as they get further from the beach.

[samsiam]

Flocking hell...