The Hua Hin real estate market is uniquely positioned within Thailand. Steady demand from Bangkok-based buyers, infrastructure improvements allowing for greater tourism opportunities and an undersupply of quality residences saw the region remain resilient during the past 18 months. These factors are also positioning it for future growth.
Glenn Thomson, Head of Real Estate in Hua Hin for Lazudi, has been involved in the local property scene for more than 15 years. He notes the biggest misconception people currently have about the Hua Hin real estate market relates to supply and demand.
“Most people have the impression that there is a huge oversupply of property in Hua Hin,” Glenn said. “Agents here will tell you there is actually an undersupply of good properties to match the criteria of the average buyer. We are pleased that developers are continuing to bring new developments or new phases to meet our buyers’ demands.”
He added several large developments meeting the criteria of buyers managed to sell out. This, in turn, prompted homebuilders to confidently start new phases at these projects. The aim is to meet current demand while being prepared for the return of overseas arrivals.
Thai Families and expats based in Bangkok are the predominant category of Hua Hin property buyers at the moment. Interestingly, different reasons for purchasing have emerged from this group. Many are looking for second homes; others are working remotely and no longer need to be located in the capital; some are preparing for retirement in Hua Hin; and a few have found deals too good to pass up.
“Many buyers from Bangkok had already planned to buy property in Hua Hin but pushed their plans forward a few years,” Glenn explained. “Those considering property here in the future viewed the price reductions from resale property as too good to miss. You also had many developers opt against making price increases which presented buyers with another good opportunity during the past year.”
And while local property buyers were able to take advantage of various opportunities, those overseas have mostly waited on the sidelines of the Hua Hin real estate market. Glenn reports some international clients were confident enough to purchase remotely, but most preferred to wait until they visit in person. However, they run the risk of missing out entirely.
“We are in touch with hundreds of buyers waiting to return to Thailand who are seeing properties they have their eye on being sold before they can get here,” Glenn notes. “Good, discounted properties will have all but been sold when our buyers get here. They will be disappointed they missed out and disappointed if they cannot negotiate the same deals on other properties.”
Infrastructure unlocks new opportunities across the Hua Hin real estate market
While the Hua Hin real estate market has remained active over the past two years, work has also gone on behind the scenes to improve the region’s travel prospects once Thailand reopens to tourists. Earlier this year, Hua Hin Airport signed an agreement with Phoenix Aviation to develop and promote the facility in an attempt to establish more international connections. According to reports, airlines from Singapore, Hong Kong, China and India are already interested.
Additionally, the Tourism Authority of Thailand is hoping flight service between Hua Hin and Phuket begins in the near future. While plans remain in flux, the possible benefits of increased domestic and international air travel into the region could be massive.
“The impact is going to be huge regarding national, regional and international travel from Hua Hin Airport. I see the opportunity for travelers to look at two-center vacations, such as Hua Hin with Phuket, Samui or Chiang Mai,” Glenn said. “Connections from Hua Hin to Singapore, Hong Kong and Malaysia will be a stepping stone for onward travel to Europe, Middle East, China and Australasia.”
Another noticeable improvement is the widening of roads throughout Hua Hin. According to Glenn, the local municipality has worked to reduce travel times that allows those staying outside the city to reach popular entertainment venues, restaurants and beaches in less time.
All of this will have a positive impact on the Hua Hin real estate market. More tourists visiting Hua Hin in the future is a potential boon for investors purchasing off-plan condominium units and rental villas, especially ones in central areas.
Increased tourism and improved infrastructure also make locations to the north, south and west of the city center more attractive. New developments have already begun stretching into these areas with road improvements meaning living here is more practical than in years past.
“With space at a premium in Bangkok, being able to buy property with land and space from neighbors is very appealing,” Glenn pointed out. “Many people are choosing the peaceful areas just to the south of the city where there is more space and prices are a little lower. The north is doing well because of the shorter travel time from Bangkok. There is a lot of room for development in the west where new, high-quality projects can be launched.”
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