Property prices will not surge this year as the market belongs to buyers, he said. Yet, although the number of walk-in buyers has dropped, the take-up rate is high as buyers are keen to purchase, mainly for investment, he said.

During Hua Hin’s property boom, most buyers bought residential units for their own use, he said.

Current prices are also more reasonable than in the past, having stabilised since the slowdown that began in late 2008. Unlike markets such as the United States, where property prices have tumbled, economic turbulence has only had a marginal impact on property in Hua Hin, he said.

Hua Hin’s beachfront condominiums continue to be priced in two ranges – from 70,000 to 90,000 baht per square metre and from 100,000 to 140,000 baht – unchanged from the last two years, he said. Meanwhile, land prices have doubled over five years.

The Hua Hin market in the first quarter was healthier than in mid-2009, with signs of a pickup starting in the fourth quarter last year, he said.

Engel & Volkers currently has 1,700 inquiries showing interest in buying residential units in the area, he said. About 63% of requests are from Thai buyers, up from 50% in 2009, followed by buyers from Germany (6%) and from the UK and Ireland (6%). North America, Benelux countries, France and Singapore each provided 3% of inquiries.

Last year, a wealthy Russian petroleum owner and a Kazakhstan government minister broadened the profile of potential buyers in Hua Hin, following the entry of the high-end spa Chiva-som into Russia’s health care tourism market. Russian buyers are normally interested in Pattaya.

But these investors sought six-bedroom beachfront villas and residential units with branded-hotel management, categories of property that are not available in Hua Hin.

Last year, a buyer from Kazakhstan spent more than 100 million baht on a 20-rai beachfront plot to develop a villa project in Huay Yang, an emerging location south of Hua Hin.

During the first two months of this year, Engel & Volkers recorded 30 million baht in sales transactions in Hua Hin, while there were no sales in the same period last year.

Over 2010 the company expects 300 million baht in transactions. Currently, it has 132 beachfront and golf-course properties worth 1.9 billion baht on its listing, 90% of them resale units. Of the total, 76 properties are apartments and condominiums worth 814 million baht. Another 56 are villas and low-rise units with a total value of 1.1 billion baht.

SOURCE: Bangkok Post

One-quarter of the 201 units at Amari Residences were sold in the first 45 days of presales.

Chief executive officer Yuthachai Charanachitta said the price increase would be in line with market conditions and demand.

The company says property demand is starting to increase this year because of the expected recovery of overall global economic conditions.

In just the first 45 days of presales, around 25% of the 210 units at Amari residences were sold. He said 90% of the buyers were local people wanting to buy the units for residences.

The company believes sales will increase to 40% in April and reach 70-80% in the final quarter.

The number of tourist arrivals has increased since early this year, particularly in resort destinations. Demand by foreign investors is also rising in line with good economic sentiment.

Apart from the Hua Hin project, the company plans to introduce other projects in resort destinations such as Phuket, Samui, and Koh Chang.

“We have land banks in prime areas in many resort destinations. This year, we will focus on expansion in provinces especially in resort destinations,” said Mr Yuthachai.

“However, the investment plan will depend on local political problems as well as the global economic situation.”

SOURCE: Bangkok Post

Engel and Volkers team

Most inquiries are coming from potential buyers in Europe, said the master licence partner of Engel & Volkers Asia-Pacific Ltd, a Germany-based broker.

Sentiment in Phuket started to improve last month with the beginning of the peak tourist season, she said. Most customers are Scandinavian, British and Russian.

“They [foreign buyers] were back. They e-mailed us last month and asked about rental villas and residents for sale. But they prefer resale units, in which they had more confidence than off-plan projects.”

Property developers and investors are also becoming increasingly active and showing interest in buying large plots on beachfront land for developing high-end villas, hotels and resorts in Phuket and Hua Hin, she said.

Investors from Thailand, Singapore and Dubai with strong financial backgrounds recognise the potential for high-end villas. Double 8 Realty is negotiating land sales for three projects and expects to close the deals worth 200-300 million baht by year-end, said Ms Kraus.

All available land on Phuket’s west coast and in Hua Hin town has been sold. Developers are now looking at Khao Tao, where beachfront land sells for 20-25 million baht a rai, Cha-am for 15-20 million baht and Kui Buri for 5-6 million baht.

Individual European buyers have asked the company to find large quantities of beachfront villas and condominiums for sale so they can benefit from lower prices during the recession. They plan to re-sell the units to European clients.

“To increase foreign demand for Thai property, the government should consider an extension of the maximum leasehold period to 60 years (from 30) and banks should support mortgage loans to foreign buyers,” she said. “The economy is improving now but the main concern is political stability.”

Demand for condominium resales in Bangkok remains strong despite sluggish market conditions as buyers have lost confidence in off-plan projects, said Mrs Kraus. Asking prices for off-plan projects are falling while resale prices for completed projects are rising.

In the first half of the year, the resale price for completed high-end to luxury freehold condominiums rose by 7% to approximately 110,000 baht per square metre, while the average selling price for similar off-plan projects declined by 8% to 10% to approximately 128,000 baht per sq m.

Prices

Research by Double 8 Realty shows six condominium projects with about 650 units were launched in downtown Bangkok in the first half. Some 45 off-plan projects with about 3,000 units were being marketed in the same area.

The company has two offices, in Hua Hin and Phuket, with a portfolio of 200 resale properties. It plans to move its headquarters from Hua Hin to a new office on Thong Lo Soi 3, in Bangkok, which will open on Dec 3.

The company has further plans to open 15 new offices across the county within 2011, starting with Samui and Pattaya next year. It plans to increase its registered capital to 100 million baht from 80 million next month.

“Bangkok is a very competitive market, especially in luxury property,” she said. “We’re listing and gathering resale units in Thong Lo and the surrounding area, which we estimate to be around 10,000 units.”

Mrs Kraus said the company would focus on units priced higher than 80,000 baht a sq m to match demand for high-quality products from its clients.

Engel & Volkers, a broker founded in Germany 32 years ago, has one million active clients on hand.

The company expects sales of 200 million baht from about 30 resale units in Bangkok by the first quarter of 2010 when tax breaks for property will expire.

Since last year the company has reduced its offerings of off-plan projects due to lower confidence among buyers and investors.

“The residential market will improve next year in line with the economic recovery,” Ms Kraus said. “We will resume taking new projects for sales management and will start property management service in the near future.”

SOURCE: bangkok post

Developer Suparat Group is setting up two subsidiaries – Luxe Development and Sense Development – in a strategic move to expand new residential projects under the Luxe and Sense brands.

The company will allocate an initial investment of more than Bt250 million on the development of two new residential projects in Bangkok next year.

Managing director Sumeth Sukphanpotaram said the first project being opened under the Luxe brand is the Pranaluxe up-market beach-front villas in Pran Buri district of Prachuap Khiri Khan. About 20 villa units have been already developed and sold in the first phase, and another 20 are set to be launched in the second phase.

“We want to expand our Luxe brand as luxury housing in the inner-city area of Bangkok . We are looking at some prime locations such as Sukhumvit and Sathorn for this new project development,

which we expect to start next year,” said Sumeth.

He said that the new luxury-housing project would feature “interesting character and personality” and be an attractive alternative for customers.

“We are also securing the purchase of a new plot in Phaholyothin for the development of a condominium project under the Sense brand,” Sumeth said. “We want to make our Sense a residential project that helps promote good quality for urban people at affordable prices.”

Sumeth said that the company had recently developed Sense Sukhumvit, an eight-floor 149-unit condominium on Sukhumvit Soi 68. Worth Bt360 million, the “tropical modern” condominium has been developed under the “Sense of Lifestyle” concept aimed at improving the quality of life for Bangkokians concerned about a good surrounding environment.

“The target customers of Sense Sukhumvit are working people and medium-level executives aged between 30 and 40, who have good taste and require great value in living quality,” said Sumeth. The prices of Sense Sukhumvit condominium range from about Bt2 million for studio units to Bt3 million for two-bedroom units.

He said Sense Sukhumvit condominium was expected to close the sales of the last 20 units by the end of this year.

He added that the group had seen good signs of recovery in the property sector. Consumers are more relaxed and have less concern about local economic problems. He said the mood was quite different from the end of last year and early this year when the market was quiet, both in number of client visits and bookings.

Sumeth expects full recovery to be seen in the current quarter.

SOURCE: The Nation

Domestic demand for residences in Hua Hin and Cha-am has recovered strongly, she said, and signs were good for next year. As a result, Plus Property has decided to open a second branch in Hua Hin this year. It expects sales to grow 10 per cent this year and by 15 per cent next year.

Somsakul, who is also responsible for managing the resale markets in Phuket and Pattaya, said foreign buyers – the main customer target in Phuket and Pattaya – continue to drop in numbers following the global recession. As a result, demand for residential projects in Phuket and Pattaya is still poor compared with Hua Hin and Cha-am, where the focus is on domestic demand.

Currently, Plus Property has a resale property portfolio in Hua Hin and Cha-Am worth a total of Bt6 billion. The company records sales averaging Bt200 million to Bt300 million a year in these areas, generating income of between Bt10 million and Bt12 million a year.

Somsakul said the second office would focus on foreign buyers, who will be the new customer target for residences in Hua Hin and Cha-am. At present, 70 per cent of residential buyers in Hua Hin and Cha-am are domestic.

Sea-view condominiums are popular in Hua Hin and Cha-am, especially the two-bedroom type, because of the market focus on family groups.

She said the resale price for condominium projects in Hua Hin averaged between Bt100,000 and Bt120,000 per square metre. In Koh Tao and Pran Buri district of Prachuap Khiri Khan, prices average between Bt75,000 and Bt85,000 per square metre. In Cha-am, prices are between Bt65,000 and Bt70,000 per square metre.

The resale market in Hua Hin has recorded higher prices than other locations in Phetchaburi and Prachuap Khiri Khan provinces because of a shortage of new condominium projects.

SOURCE: The Nation

Major of demand in these areas remain with Thai domestic buyers and leveraging is available as the vast major sell on a freehold basis. As a comparative the estimated Phuket condominium and apartment market is estimated to have a total market size in excess over 5,000 units.

While many Phuket developers and agents are crying out that market is saturated with mid level product for the moment clearly proportionate amount of completed yet unsold inventory here is just a fraction of that in Greater Hua Hin. Things in that market look to be cooling off as reportedly over 400 units have been placed on hold during the development process.

SOURCE: Phuket insider.com

Hua Hin property

The number of new residential projects launched at Hua Hin has fallen from 1,061 units in 2007 and 1,001 units last year to only 190 units in this year. However, demand for project homes has recovered in the third quarter of this year from what appears to have been the bottom of the slump in the first six months of the year.

Early recovery reveals a changed market that is more focused on rentals

The managing director of property agency Knight Frank Charter (Thailand), Phanom Kanjanathiemthao, said rising demand in the third quarter had been confirmed by most of the residential projects at Hua Hin for which the agency worked as a marketing manager. Compared with 2008 and the first half of this year, sales are rising.

He said the property market at Hua Hin had been heavily hit by the global financial crisis because foreign buyers had suspended their plans to buy second homes. Sales from residential projects, both resort-style and condominiums, started falling when the crisis began in 2008 and the tumble continued into the second half of this year.

However, prices for residences and land in Hua Hin have remained stable over the period of collapsing demand.

Phanom said that from the middle of 2007 until now, residential and land prices in many countries, such as United Kingdom, Hong Kong, Singapore, the United States and others, had fallen by 20 to 30 per cent because of the economic crisis. However, prices for homes and land in Thailand have remained stable, and despite the downturn, demand for new homes has continued to support supply.

While demand for residential-project homes in Hua Hin is showing signs of recovery, most of the demand is focused on the area close to the beach, rather than further inland. This differs from two years ago, when there was strong demand for all categories of residences and at all locations, Phanom said.

Plus Property’s assistant managing director Somsakul Limsuttaphan said the property market in Hua Hin for foreign investors had changed from a trade market to a rental one. Most foreign visitors who decide to stay in Hua Hin are now asking for long-term rental, rather than buying or signing a long-lease contract.

“Ninety per cent of foreign customers are now willing to rent, rather than buy,” she said.

Condominium units for rent in Hua Hin range in price between Bt35,000 and Bt70,000 per month. The most popular size is two bedrooms, with floor space between 70 and 120 square metres. Following these are one-bedroom units between 50 and 60 square metres in size and costing between Bt25,000 and Bt30,000 per month.

Most foreign customers sign rental contracts lasting between six months and 12 months, and this is less time than they would have spent in Thailand before the country’s political uncertainty began, said Hua Hin Thai Property’s managing and sales director Vutthikorn Sathan-art.

He said the foreign rental market in Hua Hin had continued to grow, but tenants’ time in the country had fallen from more than one year to less than one year because most foreigners were concerned about Thailand’s political problems.

“Foreign buyers’ demand for residences in Hua Hin has also changed from the early-retirement market to foreigners who are married to Thais,” he said.

As a consequence, the most popular residences are no longer luxury units with prices of more than Bt20 million, but homes priced between Bt5 million and Bt10 million.

Vutthikorn said demand from local buyers had also changed. They no longer want homes priced between Bt5 million and Bt10 million, but are looking to pay between Bt3 million and Bt5 million for a residence.

The prime location for property developers in Hua Hin is between Sois 88 and 102, he said.

SOURCE: The Nation

Executive vice president Uthai Uthaisangsuk said the company expected to close sales for the project in the first quarter of 2010.

To meet this target, the company has redesigned some units, including the penthouse, under the theme Nautica Blue Villa.

The blue design was selected to match the units’ natural raw materials, including wood and fabric.

Sansiri senior manager for product development, Jariya Janjerdsak, said the use of natural materials created a textured look and feel. The design of the project is intended to convey a feeling of being close to nature.

With floor space of 238 square metres, the penthouse has three bedrooms and three bathrooms – and a price tag of Bt25 million.

One of the unit types – Coastal Rustic Beach – makes prominent use of earth tones, Jariya said, in a design intended to relax the resident. These two-bedroom, two-bathroom units have floor space of 101 square metres and sell for Bt10 million.

There are six other types of units: Coral Green (89.47 square metres, Bt6.95 million), Modern Sand (144.01 square metres, Bt15 million), Sunny Sand (89.5 square metres, Bt6.04 million), Arctic Blue, (88.91 square metres, Bt6.16 million), Romantic Beach (91 square metres, Bt6.2 million) and Cozy Summer (88.98 square metres, Bt7 million).

SOURCE: The Nation

The drive south takes nearly three hours, and it can be maddening – if not because of the sheer volume of traffic, then surely because of the aggressive drivers who charge along the road without consideration.

How I dreamed of slipping into room #11 in the Aleenta Resort and leisurely riding my bike along deserted beach and country roads, where farmers continue to walk their cows, and the cows munch idly at the roadside grass, ignoring anyone or anything passing by.

I’ve been visiting Pran Buri ever since I first arrived in Thailand nearly four years ago. I was immediately drawn to its charm and the feeling that I had somehow stepped into a place free from the city – in fact, into a gentler way of life.

On my first trip to Pran Buri, I remember coming around the corner of the mountain and just before Wat Summanawat, coming face to face with a gigantic elephant lumbering along the road. The mahout laughed at what must have been a very funny sight: a frightened foreigner on a bicycle who thought he was only steps away from imminent demise beneath the giant feet of this beast.

How times have changed. On this most recent trip, as my friend and I were returning from our first biking tour and just as the sun was setting, an Aston Martin convertible pulled up beside us. The driver looked down his nose and over his Prada sunglasses as if we were quite ridiculous to be riding bikes in the country. We smiled and let him and his security detail pass. Yes, you read it correctly – his security detail. An SUV with blackened windows and flashers blinking, just in case a rogue cow was lurking in the shadows. We started laughing, but then noticed a black Mercedes-Benz with tinted windows speeding down the road and kicking up dust.

Had Pran Buri changed so greatly and so abruptly? Thinking about it led me to a conclusion: if Hua Hin is the Hamptons of Thailand, then the new Pran Buri must be the local Malibu!

In less than four years, Pran Buri has gone from being tranquil to being red hot. It seems that, as properties become harder to get in Hua Hin, and since available beachfront property there is virtually non-existent, the nouveau riche have settled in Pran Buri. Newly built homes with frontage the width of one luxury-car length now sit side by side directly on the beach, with only a slice of land between the properties and a tiny patch of grass at the rear. Most are modernist structures and all have been named.

I’m not saying I despise it. I just want to know when the Ralph Lauren boutique is coming … and can we please have a local taco stand?

By Brent D Smith
Published on September 25, 2009
SOURCE: The Nation