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Long referred to as Thailand’s “royal resort,” Hua Hin has grown from its venerable roots as a holiday destination for Bangkok’s high-society to become one of the country’s most talked about holiday-home investment markets.
Located 230 km south of Bangkok on the Gulf of Thailand, Hua Hin’s property growth really started to take off about three and a half years ago, with beachfront development moving particularly fast.
Today, the Hua Hin market can be divided into three categories, says Phanom Kanjanathiemthao, managing director of Knight Frank Thailand.
“The first is comprised of the local Thai people who are living there to work or do business,” he said. “Those people are buying property located inland near Hua Hin’s town centre. The second largest segment is made up of Bangkok Thais looking for a resort-style second home, with the majority buying beachfront property. The third market is comprised of foreigners, which is increasing more and more every year.”
Phanom says the foreign market can be divided into two areas. The first is made up mainly of Scandinavians, with the majority purchasing homes in housing estates located off the beach. The second market consists of foreigners buying resort homes on the beach.
“Up to now, I’d have to say the market is moving quite a bit slower, especially since last year, as the economic and political problems have all have an effect,” says Phanom, adding that once these problems are sorted, the market is expected to pick up significantly, much like in the country’s other resorts.
As for Hua Hin’s property make-up, beachfront land is getting very scarce. Not much is left for new developments and land prices have grown much steeper, particularly between Hua Hin and the northern resort of Cha-Am.
“Not many big plots are left for resort-style residential developments,” says Phanom. “Some developments are moving down to Pranburi beach, which is about 40km from Hua Hin. But Pranburi is mainly for holiday type developments, not villas or condominiums. There are only one or two developing there for residential properties and land sales are still very slow.”
As for the popular stretch between Hua Hin Cha-Am, Phanom says there are a few developers who have occupied the land for some time, but most won’t develop condos or villas, instead choosing to build hotels or resort-type developments.
A tour of Hua Hin greets perspective buyers with endless numbers of local real estate agents offering up a seemingly endless list of properties. Most of these are homes in small housing projects targeting Europeans with Thai spouses. Unlike in Phuket or Pattaya, there are comparatively few large scale developments to speak of.
The Bt5 billion luxury development “Boat House Hua Hin” remains the town’s largest residential development. Launched in 2005, it sits on a 72rai plot of land and is comprised of villas and condominiums. The first phase of villas was due for completion in April, and the entire project comprises 114 villas and a condominium development with 455 units priced at Bt70,000psm. The condominium tower will be finished in the third quarter of this year and the remaining phases of the Boathouse are due for completion in two and a half years.
Phanom says Boathouse sales have been brisk, with about 70% of the launched phases sold. Of that figure, 30% of the buyers are foreigners, with many coming from Hong Kong and Europe.
Looking to the top-end of the market, the 14rai Baan Chaan Talay is considered Hua Hin’s priciest. This beachfront project features luxury low rise four and seven-storey residential condominiums and is located between Hua Hin and Cha-Am. Each of the 22 villa style units features its own swimming pool and there are also two infinity-edged swimming pools onsite. Unit sizes range from 56 sqm to 395 sqm and prices range from Bt110,000 to Bt140,000PSM.
Other notable beachfront resorts that have come on stream by the big name developers over the last two years include Sansiri’s Mexican themed Las Tortugas, located between Hua Hin and Pranburi on Khao Tao beach. This full-service condominium is near completion, and is reportedly nearly sold out. Then there’s Ocean Hua Hin, a contemporary beachfront version of the Thai-Victorian style resort homes from years past.
But that’s not to say high-end development isn’t taking place away from the beach. Golf course property remains popular among those with a love for the links. Hua Hin has long been considered a golfer’s paradise, given that Thailand’s first golf course - the Royal Hua Hin Golf Course - was built here in 1924 and remains a popular tee-off spot today.
Most of the homes being built around the town’s courses are not in actual developments, but were constructed by owners who bought a plot of land and built on their own.
Thai developer Lersuang Group, best known for its high-end Phuket developments, has taken a different route and is building the first golf course condominium property, the Hua Hin Country Club Apartments, due for completion in 2008.
The development consists of 66 luxury two-bedroom, two-bathroom apartments of 130-145sqm as well as five, three bedroom, three bathroom penthouse suites sized at 261sqm. The project is located at Nong Hiang, just 10 kilometres from the centre of Hua Hin.
Facilities include a 300 metre swimming pool, fully equipped fitness centre, Jacuzzi, spa, clubhouse, broadband wireless internet, games room, 24-hour security, a restaurant, and tropical landscaped gardens. A unique feature of the Hua Hin Country Club Apartments will be a bowls green and lawn tennis courts. Prices for the apartments range from Bt5.8-6.7 million for two-bedroom units and Bt12.6-13 million for the penthouses.
The major selling point of this project is the Black Mountain Golf Course, consisting of two newly constructed 18-hole golf courses due to open in March of 2007.
Black Mountain is in fact the seventh to be built in the Hua Hin area, joining the ranks of such courses as the Jack Nicklaus-designed Springfield Country Club.
Buyers looking for something away from the pricier beachfront developments are also looking to the hills. Thai developer Ubolchart’s Kiri Nakara project, completed in 2006, consists of hillside villas. Prices start at Bt3 million, making it an affordable alternative for both foreigners and Bangkok Thais looking for a home close to nature. The project features extensive gardens and parklands as well as lakes and trees to attract the native birds and fauna. The villas feature a fusion of Balinese and Thai tropical architecture concepts.
Overall, prices in Hua Hin range dramatically. For new beachfront condos, the average price is about Bt70,000psm, with the most expensive ranging from Bt110,000 to Bt140,000psm. Villas range from Bt50 to 60,000 per villa depending on land and size. Housing in developments away from the beach range in price from Bt2.5-6 million baht.
Phanom says the Hua Hin market appeals mainly for those looking for a laid-back lifestyle, and not for those looking for exciting nightlife such as that found in Pattaya.
“The thing is, if you were a royal family member or a rich Thai person, you wouldn’t go to Pattaya. They see it as a second class area,” he said. “Hua Hin is the first choice of resort town for them. His Majesty the King lives there, so it’s safe. It’s very difficult to get permission to open a night club or bar, unlike Pattaya. Bangkok Thais don’t want something like Pattaya and there are a number of foreigners who feel the same way. They want something with good facilities, nice people, a nice beach and security.
“Because His Majesty lives there, security is high and there are regulations keeping businessmen from opening bars. A number of royal families stay there, as well as many wealthy business men. There is a community of wealthy Thais that know each other and meet and socialize in Hua Hin.”
One set-back to the resort’s growing popularity is traffic congestion, especially on the long weekends and during festivals, however they are reportedly expanding the town’s main roads. The other setback, at least from a foreigner’s perspective, is the lack of any quality international hospitals.
Regardless, foreign interest continues to grow, and this can be attributed to the fact Hua Hin features all the major five-star brands, such as Hyatt, Marriott, Hilton, Sofitel, Anantara, Evason, Chia-Som, Novotel, and Dusit.
And now, InterContinental Hotels Group has announced plans to develop the InterContinental Hua Hin Resort, scheduled to open in the fourth quarter of 2008. Occupying a prime beachfront location along Petchakasem Road, the contemporary Thai-style resort will have 120 rooms and three beachfront villas with private plunge pools.
Another facility that has provided a boom to the market is last year’s arrival of the Hua Hin Market Village, the first large-scale shopping and entertainment complex in the beach resort town. The facility includes a large Tesco´s superstore, retail outlets, restaurants, bowling alley and cinema.
And as more and more high-end restaurants and boutique hotels come on stream, Hua Hin’s reputation as a prestigious destination for the well-to-do will only grow, including in the eyes of the world’s wealthy foreigners looking for an alternative resort destination.