Hua Hin Property Market

Hua Hin is a diverse market, comprising seaside condos, luxury homes and expat-dominated housing villages. While the property market has traditionally been of interest to Thai investors, this trend is beginning to change, as more and more foreigners arrive on the scene. Phanom Kanjanatiemthao, Managing Director of the property consultant Knight Frank Chartered (Thailand), describes the property market as, "a luxury resort market for Thais and long-time expatriates in Thailand".

Knight Frank recently conducted intensive condominium research in Hua Hin, on an area spanning from Haad Chao Samran along Petchakasem Road to Pranburi, about 20 kilometres south of Hua Hin. They focused on 11 residential projects launched between 2003 and the beginning of 2005.

For the rest of 2005, Knight Frank believes the condominium market will experience an upward trend in both the Hua Hin and neighbouring Cha-am areas, especially for the upper medium and medium priced projects where reasonably high selling volumes are seen. "In addition to an increased demand, condominium prices in Hua Hin and Cha-am are expected to be firmer this year compared to last year, provided there are no major upsets," the company forecasts.

Currently, the price of beachfront land in Hua Hin stands at around B24 million per rai. Prices on the other side of Sukhumvit Road, the main artery running through the city, are roughly B10 million per rai.

Another reason for Hua Hin's appeal among Bangkok residents is the presence of several world-class golf courses, and golf property is heating up, says Ian Lawrie. Palm Hills is particularly popular right now thanks to its close proximity to town. "For 1.5 rai, one can expect to pay 4-5 million baht," says Mr Lawrie.

Marching in step with the increase in property development, corporate heavyweights are also kicking things into overdrive. Construction of Hua Hin's first shopping complex, the Hua Hin Market Village, is underway. A Sheraton resort is also slated to open in the first quarter of 2006, and the town already features Hilton, Hyatt and Marriott, and Thai-owned resorts Dusit and Anantara. The pricey Chiva-Som International Health Resort, which attracts the likes of football superstar David Beckham and super-model Kate Moss, has increased Hua Hin's prestige as a preferred destination for spa-lovers.

The Tourism Authority of Thailand (TAT) has big plans for the area too. It is considering an ambitious project to develop a string of beach resorts along the 528 km long western coast of the Gulf of Thailand, according to TAT Governor Juthamas Siriwan. Addressing a press conference in March, the governor said plans are unfolding to create a 'Thai-style Riviera' that would span the length of the coastline.

K. Silachai stresses the TAT is indeed aware of the pitfalls of over-development, and says steps are being taken to prevent Hua Hin from going the way of Thailand's overdeveloped tourist destinations, like Pattaya. He said there are already rules in place restricting the height of buildings in town, and because the king and queen receive many international visitors at the palace here, this will ensure Hua Hin is kept under control.

"We position the area to be a family destination; we want this area to be different," he says.

One of the main reasons Hua Hin hasn't gained the interest enjoyed by its southern counterparts is because it doesn't have the world-class beaches and scuba diving opportunities that draw tourists in. But the nightlife and general atmosphere of the town is far less rowdy than that found in Pattaya, Phuket or Koh Samui, which happens to be a high selling point for both tourists and residents here.

"The key thing when developing here is to make sure Hua Hin doesn't lose its charm," Lawrie says. "And right now, living in Hua Hin is like living in paradise."