While Hua Hin and its sister resort town of Cha-am remain calm as the political situation heats up in Bangkok, the real estate market in the area has lost its lustre, as buyers hesitate to purchase property during the prolonged political strife. Also, an influx in the supply of condos in Hua Hin over the past two of years has outstripped demand, making the market even more stagnant.
Thais have always been the main buyers of property in these popular resort towns. According to a report released by property consultancy and agency Knight Frank Thailand, condo prices have not dropped because unsold units are brand new, where developers have yet to recoup the high costs of development, including the steep price of increasingly scarce beachfront land. Also, most developers have kept prices stable so as not to engage in pricing wars.
Very few new projects have been launched in Hua Hin since mid-2013. With significantly greater appeal among foreign buyers, Pattaya and Phuket projects have enjoyed more brisk sales. However, those two markets are also at risk of oversupply, especially in the mid to lower range condo segments.
