The condo market in Cha-am still faces a glut, with the inventory of unsold units expected to take 10 years to be absorbed, while the Hua Hin condo market remains robust, says property consultant Colliers Thailand.
Phattarachai Taweewong, director of the research department at Colliers, said there is a huge volume of unsold condo units in Cha-am despite no new supply being launched since 2016.
"We expect there will be no new condo launches in the near future as Cha-am still has a large number of units available for sale," he said. "All of these units have been completed and are ready for transfer."
As of the first quarter of 2024, the condo supply in Cha-am tallied 9,420 units worth a combined 42 billion baht, with a sales rate of 66%.
As a result, more than 3,200 units worth 14.3 billion baht remain unsold.
He said the largest number was developed by non-listed developer Baan Rajprasong. Its project, The Energy Hua Hin, had more than 2,000 units left.
The remainder were developed by SET-listed developers, including L.P.N. Development, Charn Issara Development and Quality Houses.
L.P.N. has two projects in Cha-am. One is Lumpini Park Beach Chaam 2 worth 430 million baht, which was completed in 2018, comprising 124 units, with 79 units remaining unsold.
The other is Lumpini Seaview Chaam (A) worth 700 million baht, also completed in 2018, featuring 536 units, with 241 units remaining unsold.
Quality Houses had one project in Cha-am, Q Seaside Huahin, with 207 units worth 1.4 billion baht, of which 155 units worth 858 million baht remain unsold.
Meanwhile, Charn Issara had 491 units worth 1.87 billion baht remaining unsold at one of its Thew Talay projects.
"Developers should look at Hua Hin as the location to launch new condo projects instead of Cha-am, as the condo market, particularly in the city area of Hua Hin, has strong demand, especially in beachfront locations," Mr Phattarachai added.
In the first quarter of 2024, there were two new condo projects launched in Hua Hin, totalling 671 units -- the largest number in the past 12 quarters -- with a combined sales value of around 6 billion baht. All were from SET-listed Sansiri.
The total condo supply in Hua Hin, Cha-am and Pranburi was 15,790 units, with 11,115 units sold, marking a sales rate of 70%.
The highest sales rate was in the Hua Hin beachfront area at 82%, followed by the Hua Hin inland area at 70% and Pranburi at 62%.