The condo market in Cha-am continues to face significant challenges, with a substantial inventory of unsold units projected to take up to a decade to be fully absorbed, according to property consultant Colliers Thailand. Conversely, the Hua Hin condo market is experiencing robust activity.
Phattarachai Taweewong, director of the research department at Colliers, highlighted the persistent issue in Cha-am, where no new condo projects have been launched since 2016 due to the high volume of unsold units. “We anticipate no new condo launches in the near future as Cha-am still has a large number of units available for sale,” he noted. “All of these units have been completed and are ready for transfer.”
As of the first quarter of 2024, Cha-am had a condo supply totaling 9,420 units worth 42 billion baht, with a sales rate of 66%. This leaves over 3,200 units, valued at 14.3 billion baht, unsold. The largest portion of this inventory comes from non-listed developer Baan Rajprasong’s project, The Energy Hua Hin, which has more than 2,000 unsold units.
Other notable developers with unsold inventory in Cha-am include SET-listed firms such as L.P.N. Development, Charn Issara Development, and Quality Houses. L.P.N. Development has two projects: Lumpini Park Beach Chaam 2, completed in 2018 with 79 out of 124 units remaining unsold, and Lumpini Seaview Chaam (A), also completed in 2018, with 241 out of 536 units unsold. Quality Houses’ Q Seaside Huahin project has 155 out of 207 units unsold, worth 858 million baht. Charn Issara has 491 units worth 1.87 billion baht remaining unsold at one of its Thew Talay projects.
Phattarachai suggested that developers should focus on Hua Hin for new condo projects due to its strong market demand, particularly in beachfront areas. In the first quarter of 2024, Hua Hin saw the launch of two new condo projects, comprising 671 units with a combined sales value of around 6 billion baht, marking the largest number of new units launched in the past 12 quarters. Both projects were developed by SET-listed Sansiri.
The total condo supply across Hua Hin, Cha-am, and Pranburi amounted to 15,790 units, with 11,115 units sold, resulting in a sales rate of 70%. The highest sales rate was recorded in the Hua Hin beachfront area at 82%, followed by Hua Hin inland at 70% and Pranburi at 62%.
In conclusion, while the condo market in Cha-am is struggling with an oversupply, Hua Hin presents a more favorable environment for new developments, driven by strong demand and higher sales rates.
Several officials and industry representatives attended the discussion, including members of Colliers Thailand and developers from affected and successful projects. This highlighted the divergent paths of the condo markets in Cha-am and Hua Hin.
