Hua Hin might need more than just location to drive sales

[webfact]

Hua Hin might need more than just location to drive sales
By Aliwassa Pathnadabutr
Managing Director of CBRE Thailand
Special to the Nation

 

HUA HIN is a relatively small beach city that has long been a popular vacation destination. It has been a vacation destination for predominantly Thai citizens.

 

Its distance from Bangkok (at about 2.5-3 hours’ drive) and good transportation infrastructure placed Hua Hin just far enough away to feel like one is far from Bangkok but still close enough to be convenient for short weekend trips away from the busy bustle of the big city. Over the past few decades, Hua Hin has been developed into a bigger city with many new amenities to service a growing population of international tourists and residents in the area. It also attracts some retirees who permanently move to live there. From the mid-2000s forward, Hua Hin boomed with multiple large-scale water parks, amusement parks, branded hotels, malls and popular branded F&B entering the market. 

 

In 2012, the Hua Hin real estate market boomed and developers flooded the market with well over 10,000 units, leading to exponential increases in land prices as developers scrambled to buy up prime properties for development. Due to the glut of new projects announced between 2012-2014, Hua Hin is still recovering from a gross oversupply and recovery has been slow because of the economic slowdown in recent years which has affected local demand for resort properties. In 2017, the majority of supply has been largely absorbed, and there is potential for new developments. 

 

With most prime beachfront land in Hua Hin already taken, new beachfront development locations in prime areas are scarce. At this point scarcity of land and high land cost in the established downtown locations and along, Hua Hin Beach has pushed developers to other beach locations nearby such as Khao Tao and Cha am. The challenging issue is that those locations are not ideal for meeting wide target demands as they have limited retail facilities and amenities. 

 

Another reason for market slowdowns may not be due to the economy or low demand, but because there is not much product innovation to drive new demand. Hua Hin is an example of this situation where there has not been much innovation in product design to attract the market. Height regulations and long, narrow land shapes sometimes force developers to design projects that end up having the same development layout. An example of a typical development layout for a project in the Hua Hin market is a long plot with narrow beach frontage (think the shape of a ruler) made up of two buildings not more than 20 metres apart facing each other and separated by a narrow swimming pool in the centre. 

 

A project that proves design innovation and differentiation plays a large part in the success of a project is Veranda Residence Hua Hin where the developer found a rare piece of land with good size and shape, not too far from downtown Hua Hin with beachfront access and was creative with the layout and design of the project. Not only did they satisfy the resort home buyers with sea views from the majority of units but also changed the planning from the typical Hua Hin product to something new and innovative. With good positioning as “affordable luxury”, it became a unique project worthy of attention from end-users and investors alike. This is one example of the well balanced value proposition of all of the aforementioned points and offers a unique selling point of branded hotel services. 

 

The Hua Hin hotel market is in a similar situation when it comes to new product design with limited new hotels in the pipelines. New developments and newly renovated luxury hotels have proven successful which is evidenced by Hua Hin Marriott Resort & Spa that can command a premium rate. Mahasamutr, once the Country Club is completed, will be another major attraction for Hua Hin.

 

The future of Hua Hin real estate lies in the development of new product innovations. Its strong fundamentals with accessible proximity to Bangkok for Thais’ weekend getaways and the future infrastructure developments, namely of a high speed train and road improvements, will lead to new growth opportunities for its real estate market. 

 

Source: http://www.nationmultimedia.com/news/business/property/30318176

 

-- © Copyright The Nation 2017-06-16

[ChrisY1]

Is this an advertisement for hotels in HH?......

[Retiredandhappyhere]

If accommodation is in short supply in Hua Hin, as the article suggests, people should look a few KM further North towards Cha-am, where they will find several thousand empty condos seeking new owners, (at the Energy project for example).

 

In any event, if Hua Hin wants to attract more visitors and house/condo owners, the city should firstly smarten up the centre with safe pavements, improved  traffic flow, and safer electric cables, hidden underground if at all possible.  For a tourist town, these things are in serious need of safety and visual improvement.  Otherwise, the city is a nice place to live. 

[impulse]

3 hours ago, webfact said:

has pushed developers to other beach locations nearby such as Khao Tao and Cha am. The challenging issue is that those locations are not ideal for meeting wide target demands as they have limited retail facilities and amenities. 

 

When I was a kid (thru my 40's), we used to try to get away from all those amenities on holiday.  Why drive 3 hours from BKK only to spend the weekend in Little Bangkok?

 

[Emster23]

That high speed train, which would serve no purpose other than serve hiso types and drive real estate market (at insane tax burden for entire country) ought to be factored in....

[mike324]

20 minutes ago, Emster23 said:

That high speed train, which would serve no purpose other than serve hiso types and drive real estate market (at insane tax burden for entire country) ought to be factored in....

i think its silly to think high speed train would serve no purpose, tourist would benefit greatly as well as Hua HIn if tourist can reach there in an hour. I know many friends who visit always hear good things about Hua Hin, but opt to go to Pattaya because it closer during their short stays.

[impulse]

21 minutes ago, mike324 said:

i think its silly to think high speed train would serve no purpose, tourist would benefit greatly as well as Hua HIn if tourist can reach there in an hour. I know many friends who visit always hear good things about Hua Hin, but opt to go to Pattaya because it closer during their short stays.

 

I hate driving in BKK, and for a weekend getaway, I can look forward to an hour or 2 of traffic misery on my Friday afternoon getaway and Sunday afternoon return from the Asoke area where I live.  I'd certainly take a fast train to spend a bunch of my sweaty tourist cash on weekends.  Instead, I just hole up in BKK.  Even flying out for a weekend is barely worth the hassle of airports and airport traffic and excess baggage fees if I actually want to bring any toys.  Trains, on the other hand...

 

I may live and work in Thailand, but when I set foot outside of BKK, I'm a tourist...with tourist cash.

 

[khunano]

1 hour ago, impulse said:

 

When I was a kid (thru my 40's), we used to try to get away from all those amenities on holiday.  Why drive 3 hours from BKK only to spend the weekend in Little Bangkok?

 

But here it's different: Thais love shopping malls, so they spend their time in them no matter where they are, Bangkok, Hua Hin, Pattaya, Phuket.... I live in Hua Hin and definitely avoid Market Village, etc. during weekends as they are just too crowded with those Bangkok tourists.

[geriatrickid]

2 hours ago, ChrisY1 said:

Is this an advertisement for hotels in HH?......

No. it is actually a  fairly good assessment of the real estate market in HH and highlights  some of the mistakes made by the developers. The ruler illustration is spot on.

An example of this is the hotel (name specifically not given) across from Market  Village. I consider it to be one of the best of the mid market hotels. They worked with a relatively small plot on the main road  which did not reach the beach.  It has two  wings. They are so close to each other that guests can look into the rooms of each other. Guests must keep their curtains drawn if they want privacy.  There are several new condo structures  that have a similar design. The design most likely would not have been accepted in a western jurisdiction.

 

1 hour ago, Emster23 said:

That high speed train, which would serve no purpose other than serve hiso types and drive real estate market (at insane tax burden for entire country) ought to be factored in....

Nope. It is needed. The roadway is subject to gridlock and traffic is always heavy. I don't know where the  author got 2.5 - 3 hours drive because it is closer to 4 hours most days and during holiday time can be 4-5 hours if there has been a crash or  heavy traffic.  Hiso types would still drive. The  train would be ideal for tourists, day trippers, young adults and the middle class. Anything that would reduce road traffic  is a good addition.

 

1 hour ago, impulse said:

 

When I was a kid (thru my 40's), we used to try to get away from all those amenities on holiday.  Why drive 3 hours from BKK only to spend the weekend in Little Bangkok?

 

It is not little Bangkok. The shopping doesn't come close to Bangkok. Nor is the selection of quality restaurants and services  anywhere near close to that offered by Bangkok. What  HH offers is a relatively safe and clean place to decompress. Decent restaurants are easily accessible and the stress levels are much lower than Bangkok. For golfers, the region is a delight. For those who want to  experience  uncrowded beaches HH hits the spot.  HH is for adults and families. It caters to the Thais who have have some income and an education. The end result is a kinder and politer place to be.

 

The one thing lacking though  is a true trauma care facility with a  coronary care facility. Considering the fact that  HH  has such an elderly and wealthy demographic, it is a shame there isn't a full cardiac care  intervention option.

[Stargeezr]

In Hua Hin andCha Am and places aroun there as well as other beach side cities, there are

countless failed developments, The bungalow style of houses for Foreigners are all over the

place and especially around and in Hua Hin. I see a couple in the south end, and there are

more in other areas, places where 3 or 4 houses in the 20 to 40 house units being bought

and lived in and the rest just gone to ruin.  It is a shame  and I know of many

people who have bought where they should not have and live wth the regrets.  So if Hua Hin

wants to survive, the developers better re think their sales stratagies.

 

Geezer

[nausea]

What Hua-Hin needs is no more development. Just stop and save what you have.

[Upnotover]

5 hours ago, ChrisY1 said:

Is this an advertisement for hotels in HH?......

No, It's an advertisement for CBRE's interests.

[impulse]

2 hours ago, geriatrickid said:

It is not little Bangkok. The shopping doesn't come close to Bangkok. Nor is the selection of quality restaurants and services  anywhere near close to that offered by Bangkok. What  HH offers is a relatively safe and clean place to decompress.

 

Give it time..

 

If the developers had their way,  Hua Hin (in fact, all of Thailand) would look and feel just like Bangkok.  With a mega-mall every mile or so.

 

[HerbalEd]

11 hours ago, Emster23 said:

That high speed train, which would serve no purpose other than serve hiso types and drive real estate market (at insane tax burden for entire country) ought to be factored in....

The truly hi-so -- i.e., the very rich -- won't be taking the train, no matter how fast. Why would they when they can have their limo driver shuttle them door to door to their vacation home or five-star hotel?

[HerbalEd]

10 hours ago, geriatrickid said:

No. it is actually a  fairly good assessment of the real estate market in HH and highlights  some of the mistakes made by the developers. The ruler illustration is spot on.

An example of this is the hotel (name specifically not given) across from Market  Village. I consider it to be one of the best of the mid market hotels. They worked with a relatively small plot on the main road  which did not reach the beach.  It has two  wings. They are so close to each other that guests can look into the rooms of each other. Guests must keep their curtains drawn if they want privacy.  There are several new condo structures  that have a similar design. The design most likely would not have been accepted in a western jurisdiction.

 

Nope. It is needed. The roadway is subject to gridlock and traffic is always heavy. I don't know where the  author got 2.5 - 3 hours drive because it is closer to 4 hours most days and during holiday time can be 4-5 hours if there has been a crash or  heavy traffic.  Hiso types would still drive. The  train would be ideal for tourists, day trippers, young adults and the middle class. Anything that would reduce road traffic  is a good addition.

 

It is not little Bangkok. The shopping doesn't come close to Bangkok. Nor is the selection of quality restaurants and services  anywhere near close to that offered by Bangkok. What  HH offers is a relatively safe and clean place to decompress. Decent restaurants are easily accessible and the stress levels are much lower than Bangkok. For golfers, the region is a delight. For those who want to  experience  uncrowded beaches HH hits the spot.  HH is for adults and families. It caters to the Thais who have have some income and an education. The end result is a kinder and politer place to be.

 

The one thing lacking though  is a true trauma care facility with a  coronary care facility. Considering the fact that  HH  has such an elderly and wealthy demographic, it is a shame there isn't a full cardiac care  intervention option.

Regarding "... it is closer to 4 hours most days and during holiday time can be 4-5 hours."

 

Not necessarily true. I've driven twixt HH and BKK scores of times and still do so frequently. My best time from my Palm Hills home to Sukhumvit, Soi10 condo is 1hr. & 50 min. by leaving my house at 10:00pm on a week night and cruising about 120 to 140 km/hr.

 

My average driving time (both directions) is 2 to 2.5 hours -- sometimes 3 -- which I do by departing M-F about 10:30am to noon. It's extremely rare that I drive when the masses do, which can be a real nightmare -- especially on holiday weekends. No thanks!

 

BTW, please don't come to HH. You won't like it. ;-)

[observer90210]

Hua Hin is nice and quiet...but general retail is well overpriced compared to Bangkok....small time real estate investors are not all unbrained hormone injected drunk farangs looking for local titties, so consequently local retail prices should line aside Bangkok and other places of Thailand and consumerism will boost!!....or else why purchase in a place where daily consumption will cost more then elsewhere in Thailand?

[impulse]

13 hours ago, HerbalEd said:

My average driving time (both directions) is 2 to 2.5 hours -- sometimes 3 -- which I do by departing M-F about 10:30am to noon. It's extremely rare that I drive when the masses do, which can be a real nightmare -- especially on holiday weekends. No thanks!

 

Ah, the advantages of being retired.  Most of us are stuck traveling with the unwashed masses because we share their plight- office hours, and limited time off.  From my place around Asoke, it can take me 2 hours just to get to the outskirts of BKK on a Friday afternoon escape, and the same amount of time to get from the edge of town back home on a Sunday re-entry.

 

Gotta keep in mind that the majority of their target demographic (the spenders) are the ones with the jobs and office hours...

 

That train sounds like a great idea.  For Hi-so's (and I'm not one of them) have a special car with one of those burly nightclub bouncers between cars, allowing only the rich and famous to enter, and lines of wannabees waiting in line to get in, hoping they get in before the train arrives...  I'll never know what happens in that car.  And that's okay.

 

Besides, a train is a great way to see a lot of the country you miss from 30,000 feet or dodging the mini-vans on the highways.

 

[geriatrickid]

15 hours ago, HerbalEd said:

Regarding "... it is closer to 4 hours most days and during holiday time can be 4-5 hours."

 

Not necessarily true. I've driven twixt HH and BKK scores of times and still do so frequently. My best time from my Palm Hills home to Sukhumvit, Soi10 condo is 1hr. & 50 min. by leaving my house at 10:00pm on a week night and cruising about 120 to 140 km/hr.

 

My average driving time (both directions) is 2 to 2.5 hours -- sometimes 3 -- which I do by departing M-F about 10:30am to noon. It's extremely rare that I drive when the masses do, which can be a real nightmare -- especially on holiday weekends. No thanks!

 

BTW, please don't come to HH. You won't like it. ;-)

Unless one is a trucker or bus driver, one is not going to be doing a drive like that at 10 PM.

The typical gainfully employed person is going to be on the road during the day and perhaps early evening.  That's why  there are rush hours.

 

It's wonderful that you  drive  at 20 to 40 kmh above the legal speed limit. We don't. Our drivers are obliged to respect the law. 

 

[Headphone Jack]

This should be labeled as an ad for CBRE because that is what it is.

[wakeupplease]

Used to be a great place from Cha Am to Hua Hin and further down, loved every minute I spent there.

 

But what a shambles the north side is now Those condos and 6 star hotel (Joke) looks like a slum the last time I was there Energy something god knows what it will be like in a couple of years. Keep the developers out of Hua Hin and it may survive but even on my last visit I was thinking this will be my last visit sadly.

 

Back in the day it was beautiful now just a shadow of its former self.