H2 2012 | residential

HuA Hin, CHA AM And PrAnBuri residenTiAl rePorT

tHailand

Hua Hin, Cha Am and Pranburi Residential Market

HigHligHts
The property market in Hua Hin, Cha Am and Pranburi continues to grow, fuelled mainly by people from Bangkok looking for a second home or weekend condominium. Cha Am is increasingly a focus for developers, partly because it is perceived as quieter and more convenient for Bangkok residents than Hua Hin, and partly due to the rising prices and limited availability of coast land in Hua Hin. More than 3,560 condominium units had been built in Cha Am by the end of last year, and more are scheduled to launch in 2013. Hua Hin, on the other hand, is still considered the best location for a more diverse vacation experience given the greater range of facilities such as hotels, entertainment, residential and retail development. Condominiums are by far the most popular type of property being developed, comprising more than 78% of the newly-launched units in 2012. However, last year also saw approximately 1,850 landed development units launched in the three towns, the highest figure for the past ten years. Most of these houses are in the mid to low-end of the housing market, with prices below THB4 million. The average take-up rate in the Cha Am, Hua Hin and Pranburi areas is approximately 58% for landed development projects and 55% for condominiums. Most people buying houses or condominiums in these areas are Thai, with the number of foreign customers falling considerably in recent years.

www.colliers.co.th

Hua Hin, CHa am and Pranburi residential market | H2 2012 Hua Hin, cHa am and pranburi residential market
Historical supply of condominiums, landed property units and plots of land by year, H2 2012

source: department of land and Colliers international Thailand research note: 1. The numbers above include condominiums, houses and villas; we have expanded the survey area of the housing market, pushing the amount of supply higher than in the previous report. 2. The total number of houses and villas includes completed units, under-construction and undeveloped units, only completed unit for condominium.

More than 2,600 units were launched and completed in 2012, bringing the total number of residential units to approximately 17,900. Cha Am, Hua Hin and Pranburi began to grow dramatically in 2003, adding more than 1,300 units per year and Thai buyers became a very strong force in the market due to the proximity to Bangkok. in addition, Cha Am, Hua Hin

and Pranburi have become one of the best places for a second home in Thailand, especially for people who live in Bangkok and also many Thais who came to work in this area.

Historical supply by location and year, H2 2012

cumulative supply in bangkok

source: Colliers international Thailand research

The Hua Hin inland area was the most popular for residential projects, especially from 2008 onwards. in spite of this, many villa development projects for foreigners postponed their launches or stopped construction.

A lot of local developers still launched their housing projects for the local market, so the number of residential units in the Hua Hin inland area has rapidly increased over the past few years.

COLLIERS INTERNATIONAL | P. 2

Hua Hin, CHa am and Pranburi residential market | H2 2012

Historical supply by property type and year, H2 2012

cumulative supply in bangkok

source : Colliers international Thailand research

Condominiums represent, by far, the main source of supply in the Hua Hin, Cha Am and Pranburi areas. landed development only really took off in 2004 after developers looked at land away from the coast and on the hillsides, targeting the foreign market for villas and affordable second homes for Thais. in addition, local developers also launched their

residential projects for local buyers or people who came to work in the Hua Hin area. Coastal locations have always been most sought after and therefore high land prices meant that condominiums became the most feasible option.

current supply by location, H2 2012

cumulative supply in bangkok

source : Colliers international Thailand research

The total supply of residential units in Hua Hin, Cha Am and Pranburi is approximately 17,900. The Hua Hin inland area contains the highest number with approximately 6,670 units, while nearly 5,370 units and nearly 4,650 units are located in the Cha Am and Hua Hin Coast areas, respectively, with only around 1,200 units in Pranburi. The Hua Hin inland area registered the highest number, because of the largest covering area and because land prices in this area are still lower

than other areas, so it is suitable for housing projects. in addition, many local developers launched their housing projects in the area for local buyers and people who came to work in Cha Am, Hua Hin and Pranburi, due to the proximity to supporting facilities.

COLLIERS INTERNATIONAL | P. 3

Hua Hin, CHa am and Pranburi residential market | H2 2012 condominium market supply
Historical supply by year, H2 2012

source: department of land, Colliers international Thailand research

Approximately 770 units were completed and registered at the department of land in 2012, and the total current supply is around 8,820 units. The condominium market has grown continuously since2003, by

approximately 535 units per year. in addition, more than 6,100 units are still under construction and are expected to be completed in 2013.

Historical supply by location and year, H2 2012

source: Colliers international Thailand research

The total current supply is approximately 8,820 units, with around 47% of those in the Hua Hin Coastal area. Many developers focused on the Cha Am area in 2011 and 2012 and some huge projects were launched there, so in the next two to three years, the Cha Am area will represent

the biggest share of the condominium market. in addition, limited land availability in the Hua Hin area is a major obstacle to condominium development there.

COLLIERS INTERNATIONAL | P. 4

Hua Hin, CHa am and Pranburi residential market | H2 2012

condominium units available for sale, H2 2012

cumulative supply in bangkok

source : Colliers international Thailand research

Approximately 8,500 condominium units are still on the market, out of a total of around 18,900 units at more than 70 projects. Most of those in Cha Am are in large projects, which account for nearly 6,000 units

launched in the second half of 2011, and two other projects which have more than 1,000 units per project.

units launcHed
condominium units launcHed from 2005 to 2012 by location, H2 2012

source : Colliers international Thailand research

More than 6,780 units were launched in 2012, approximately 3,500 of which were launched in the Cha Am area. This was the highest in 2012, because one project was launched with more than 1,000 units. Many of the condominium projects launched during 2011 - 2012 are located in the Cha Am area, and some have more than 1,000 units. The limited availability of land at reasonable prices in the Hua Hin area is pushing developers to focus more on the Cha Am area.

Many people who come to the Cha Am, Hua Hin and Pranburi areas on a regular basis are looking for a second home in this area. Condominiums are the best choice for a second home, due to the better security, easy cleaning and maintenance.

COLLIERS INTERNATIONAL | P. 5

Hua Hin, CHa am and Pranburi residential market | H2 2012 future supply
cumulative future supply scHeduled to be completed from 2013 to 2014 by location, H2 2012

source: Colliers international Thailand research note: The year completion is expected by developers

Approximately 6,100 units are expected to be completed in 2013, including more than 2,900 units in the Hua Hin Coast area, approximately 1,671 units in the Hua Hin inland area, nearly 1,100 units in Cha Am, and more than 400 units in Pranburi. A large-scale project in the Cha Am area is scheduled to be completed in 2015, which will have nearly 6,000

units. Many listed developers are focusing on the condominium market outside Bangkok, with Cha Am and Hua Hin among their biggest target locations for the future.

COLLIERS INTERNATIONAL | P. 6

Hua Hin, CHa am and Pranburi residential market | H2 2012 demand

take-up rate of all condominium projects in tHe market, H2 2012

source: Colliers international Thailand research

The average take-up rate at the end of 2012 was approximately 55%.The average take-up rate in the Hua Hin Coast area was the highest at around 73%, with a similar rate in the Hua Hin inland area, compared to 47% and 63% for the Cha Am and Pranburi areas, respectively. due to many condominium projects being launched in the Cha Am area during 2011 and 2012, some of which had more than 1,000 units, the average take-up rate in this area is low.

Cha Am and Hua Hin have become the best locations for a second home, especially for people from Bangkok, because of the proximity to the capital. in addition, many supporting facilities have also been added in the area during the past few years, such as community malls, golf courses and international restaurants.

price
average selling price of condominium units available for sale in cHa am, Hua Hin and pranburi, H2 2012

source: Colliers international Thailand research

The average selling price of newly launched units in the second half of 2012 was approximately THB61,000 per sq m, similar to the average price in the first half of the year.

for sale increasing their prices. The average price of completed projects in the Hua Hin Coast area is more than THB130,000 per sq m. Although a lot of condominium projects were launched in the Cha Am area, many condominium projects with lower prices were launched during the past The average selling price in the Hua Hin Coast area is the highest at two years, so the average selling price in the Cha Am area is similar to more than THB74,000 per sq m, around 5% higher than in the first half that in the first half of 2012. of 2012, due to some completed projects which still have units available

COLLIERS INTERNATIONAL | P. 7

Hua Hin, CHa am and Pranburi residential market | H2 2012 Hua Hin, cHa am and pranburi market for Housing and plots of land in developments
note: This report consists of research into multiple housing developments. individual housing is excluded.

supply
Historical supply by year, H2 2012

source: department of lands and Colliers international Thailand research note: 1. We have expanded the survey area of the housing market, pushing the amount of supply higher than in the previous report. 2. The total number of houses and villas includes completed units, under-construction and undeveloped units.

A surge in supply in 2006 and 2007 can be attributed to the effect that the tsunami in Phuket had on the real estate market in other resort areas. After the devastation on 26 december 2004, many developers, mostly those specialising in landed property, turned their attention to other resort markets, especially the Koh samui and Hua Hin areas. The effect was a considerably increased supply within a few years, and this came at the start of the revival of the Phuket market and the beginning of the global financial crisis. The main target groups for house and villa developments in Cha Am, Hua Hin and Pranburi are Thais from the local area and foreign buyers. The global economic crisis of the past few years and the debt crisis in the Euro zone have affected the foreign market in Thailand, including in the Cha Am, Hua Hin and Pranburi areas. in addition, the Cha Am, Hua Hin and Pranburi areas are not main cities for business or education, so there is limited demand from local Thais for landed development.

Approximately 1,850 units were launched in 2012 and most of them are for sale in phases, with most projects focused on local buyers or on people coming to work in the area and neighbouring districts. in addition, some supporting facilities in the area were completed and opened their doors during the past few years, so the Cha Am, Hua Hin and Pranburi areas have become popular tourist destinations close to Bangkok. Many people from Bangkok were looking a second home for their weekend home or for their parents. This is because the Cha Am and Hua Hin areas are only a two-hour drive from Bangkok and are more peaceful than Pattaya.

COLLIERS INTERNATIONAL | P. 8

Hua Hin, CHa am and Pranburi residential market | H2 2012

Historical supply by location and year, H2 2012

cumulative supply in bangkok

source: department of lands and Colliers international Thailand research

The Hua Hin inland area contains the lions share of housing and plots of land in development, because the high land costs in the coastal areas make it unsuitable for landed development projects. There was a surge in supply from 2003 to 2009 due to confidence in the market following the recovery from the Asian Financial Crisis and the effects of the

tsunami in Phuket at the end of 2004 when many developers came to the Hua Hin inland area for new developments. Many projects focusing more on the foreign market are still available, so most of the new villa projects have delayed their launches, although some local developers continue to launch their new projects for local buyers.

House, villa and plots of land available for sale in tHe market by location, H2 2012

source : Colliers international Thailand research

The Hua Hin inland area contains, by far, the greatest number of available housing units located away from the coast to the west of Phetkasem road (Highway 4), which creates a boundary between the Coast and inland areas. Many cheaper units are located on the hillside overlooking the coast. The high numbers in the Hua Hin inland area mean that there are many units waiting to be absorbed by the market and that older, unmaintained units may now be difficult to sell. In addition, some projects

stopped construction and will restart again only after the buyer signs an agreement. The land price of some areas in the Hua Hin inland area is still lower compared to the area along the coast. Therefore, many local developers have launched their mid-price to low-end projects in this area for local buyers.

COLLIERS INTERNATIONAL | P. 9

Hua Hin, CHa am and Pranburi residential market | H2 2012 units launcHed
Housing and plots of land in development projects launcHed from 2005 to 2012 by location, H2 2012

source: Colliers international Thailand research

Approximately 1,850 units were launched in 2012, a record high for the moving out of flooded areas and some of them buying a second home Cha Am, Hua Hin and Pranburi areas. That figure includes the total outside Bangkok. number of all units in the projects, although most of them have not yet started construction. The Cha Am, Hua Hin and Pranburi areas are the best places for people from Bangkok who are looking for a second home or a weekend home, The number of newly launched units in 2012 dramatically increased because they are still peaceful and have many supporting facilities compared to the past few years, with most of those launched in the second half of 2012, due to the confidence of both customers and nearly 100% of housing projects in the area were developed by local developers in this area. In addition, the flood in the central part of companies, with only a few villa projects being developed by foreign Thailand at the end of 2011 was a positive factor for the property market firms. in Bangkok and the surrounding areas, due to residents temporarily

future supply
cumulative future supply scHeduled to be completed from 2013 to 2014 by location, H2 2012

nearly 1,070 units were scheduled to be completed in 2012 in all locations, and 85% are located in the Hua Hin inland area. The completion date depends on the developers, as some housing projects in Cha Am and Hua Hin are made to order, although some developers will start construction as soon as buyers sign an agreement.

source: Colliers international Thailand research note: The year completion is expected by developers

COLLIERS INTERNATIONAL | P. 10

Hua Hin, CHa am and Pranburi residential market | H2 2012 demand

tHe take-up rate for all projects in tHe market by location, H2 2012

cumulative supply in bangkok

source: Colliers international Thailand research

The average take-up rate of all locations is approximately 58% from a total of 5,600 units on the market; the average take-up rate in the Hua Hin Coast area was the highest at around 68%, followed by the Pranburi area with 61%, and the Cha Am and Hua Hin inland areas at approximately 56%. The limited supply in the Hua Hin Cost area and the closeness to the beach are the main reasons for the demand in the area, although the average price is the highest. More than 70% of the total number of villas

and houses available, approximately 3,900 units, are located in the Hua Hin inland area, so the average take-up rate in this area is the lowest. Most large-scale house and villa projects are located in the Hua Hin inland area, although there is no beachfront; many have proved popular due to the price, a sea view location, the cooler climate in the hills and easy access to golf courses. in addition, many mid-range and low-end housing projects are also located in the Hua Hin inland area and are focusing more on local buyers.

COLLIERS INTERNATIONAL | P. 11

Hua Hin, CHa am and Pranburi residential market | H2 2012 price

average selling price by location of Houses and villas available for sale, H2 2012

source: Colliers international Thailand research

The average selling price in the Hua Hin inland area is the lowest, although most villa development projects are located there. A lot of the mid-range to low-end housing market is also in this area. The prices at some projects in the Hua Hin inland area are starting from THB0.7 million for townhouses and up to THB25 million for villas. The average price in the Hua Hin Coast area is the highest, due to several luxury projects being launched with prices from around THB20 to 40 million for beachfront villas; most of the total supply in the area is only few minutes walk to the beach.

The average selling price in the Hua Hin inland area is lower than in the Hua Hin Coast and Cha Am areas, due to many of the housing projects in the area being located very far from the coast and consisting of only one storey with a small plot of land, suitable for two people. in addition, many mid-range to low-end projects were launched in the area, with the selling price of some starting at THB730,000 per unit for a townhouse. The most taken-up units in 2012 were houses with selling prices lower than THB4 million per unit in the Hua Hin inland area, which were bought by Thais.

summary 2012 and forecast 2013

The condominium market in the Cha Am, Hua Hin and Pranburi areas in 2012 continued to grow compared the previous year. Many developers, especially listed developers, launched their new projects in the area while some local developers planned to launch their new projects in the second half of the year. newly-listed developers were coming to the market and looking for investment opportunities in the area, especially in the condominium market. The condominium market will keep growing in 2013 at a rate similar to that of 2012. Many housing projects were launched in 2012, especially in the Hua Hin inland area which has around 70% of the total supply. The midrange to low-end housing market was the most fashionable; the take-up rate of houses with prices lower than THB4 million was the highest in 2012 and nearly 100% of the buyers at this level are Thai. The area along the coast is the most fashionable for condominium development, but there is limited availability of land at reasonable prices, so some developers have moved their focus to the area along Phetkasem road or the Hua Hin inland area. Many mid-range condominium projects have been launched far from the beach, due to developers needing to keep their prices at THB3 - 4 million, or below THB90,000 per sq m. The mid-range market still has room to grow in 2013; a lot of Thais are looking for a second home outside of Bangkok and they prefer to stay in landed developments rather than condominium units if the price is similar. Since the Hua Hin City area is very busy and has traffic jams every weekend, especially during the long weekends, many Thais prefer to stay in the Cha Am area to escape the congestion. The Cha Am area has become a popular location for a second home because it is more peaceful and convenient to reach from Bangkok, although it still lacks supporting facilities. in addition, there are many available plots of land along the coast and Phetkasem road at lower prices than in the Hua Hin area. For all of these reasons, developers are focusing more on the Cha Am area. in the Pranburi area, the beach is more tranquil and exclusive which is most appropriate for resort development, although land prices are still reasonable. However, due to the lack of support facilities and the long distance to Hua Hin City, there were few projects launched here during 2012. Hua Hin, on the other hand, is still considered the best location for a more diverse vacation experience given the greater range of facilities such as hotels, entertainment, residential and retail development. The Cha Am, Hua Hin and Pranburi areas are the best locations for Bangkok residents seeking a second home. The Mall Group planned to open their new 140,000 sq m shopping mall in the Hua Hin area on Phetkasem road; Bluport Hua Hin resort Mall is expected to be completed in 2015. in addition, some community malls also were under construction and scheduled to be completed in 2013 - 2015 in the Cha Am and Hua Hin areas. The Cha Am, Hua Hin and Pranburi areas could be more interesting than in the past if all of the projects are completed. in addition, some existing community malls in the area, such as santorini Park in Cha Am and Plearnwan in Hua Hin, have also attracted many people.

COLLIERS INTERNATIONAL | P. 12

Hua Hin, CHa am and Pranburi residential market | H2 2012

appendiX

COLLIERS INTERNATIONAL | P. 13

Hua Hin, CHa am and Pranburi residential market | H2 2012 Zoning

For the purposes of research the area is divided into four zones that reflect existing district boundaries.

COLLIERS INTERNATIONAL | P. 14

Hua Hin, CHa am and Pranburi residential market | H2 2012 Hua Hin - coast
Hua Hin is the northernmost district of the province of Prachuap Khiri Khan. it came to prominence in 1922 due to the presence of a summer palace. since then it has become a magnet for tourists, who were originally predominantly Thai but are now increasingly foreign. The coastal area is defined as being east of Highway 4. This area contains a vibrant mix of higher-end hotels and restaurants and represents by far, the main area for entertainment for the whole of Hua Hin, Cha Am and Pranburi. residents taking a weekend break, as prices are generally lower and there is more of a local atmosphere. A number of higher-end establishments have sprouted up especially in the south, on the border with Hua Hin.

pranburi

Highway 4 snakes away from the coast as it leaves Hua Hin, rendering the coastal area of Pranburi, the district south of Hua Hin, more isolated. The beaches are therefore, more tranquil and a feeling of exclusivity has lead to the development of a number of high-end resorts along the beach road. While coastal land is at a premium in Hua Hin, Pranburi offers more Hua Hin - inland available land and could be the area for higher-end developments. The area to the west of Highway 4 and away from the coast can be However, the further south the road goes, the longer it takes to travel to described as the first low-lying land offering cheaper accommodation and from Bangkok, making it a less convenient weekend getaway. options, while the hillside further west can provide coastal and mountainous scenery as well as cooler weather. Many villa developments have been constructed and are popular with foreigners, especially scandinavians.

cHa am
This district is in Phetchaburi province and borders Hua Hin to the north. In general, Cha Am flows at a different pace from its better-known neighbour. it has a more rustic feel and is very popular with Bangkok

COLLIERS INTERNATIONAL | P. 15

Hua Hin, CHa am and Pranburi residential market | H2 2012 colliers international tHailand management team
HuA Hin oFFiCe sunchai Kooakachai | Associate director PATTAYA oFFiCe Mark Bowling | senior sales Manager supannee starojitski | senior Business development Manager / Office Manager ProJeCT sAles & MArKeTinG Monchai orawongpaisan | Associate director residenTiAl sAles & leAsinG napaswan Chotephard | Manager AdVisorY serViCes | HosPiTAliTY Jean Marc Garret | director reTAil serViCes Asharawan Wachananont | Associate director reseArCH surachet Kongcheep | senior Manager oFFiCe serViCes nattawan radomyos | senior Manager indusTriAl serViCes narumon rodsiravoraphat | Associate director AdVisorY serViCes napatr Tienchutima | Associate director reAl esTATe MAnAGeMenT serViCes Thanasit Tonsatcha | Associate director inVesTMenT serViCes nukarn suwatikul | Associate director Wasan rattanakijjanukul | senior Manager VAluATion & AdVisorY serViCes Phachsanun Phormthananunta | director Wanida suksuwan | Associate director

522 offices in 62 countries on 6 continents

A leader in real estate consultancy worldwide 2nd most recognized commercial real estate brand globally 2nd largest property manager 1.25 billion square feet under management over 12,300 professionals
COlliers internatiOnal tHailand: Bangkok Office 17/F Ploenchit Center, 2 sukhumvit road, Klongtoey, Bangkok 10110 Thailand tel +662 656 7000 faX +662 656 7111 email info.th@colliers.com Pattaya Office 519/4-5, Pattaya second road (opposite Central Festival Pattaya Beach), nongprue, Banglamung, Chonburi 20150 tel +6638 427 771 faX +6638 427 772 email info.pattaya@colliers.com Hua Hin Office 27/7, Petchakasem road, Hua Hin, Prachuap Khiri Khan 77110 Thailand tel +6632 530 177 faX +6632 530 677 email info.huahin@colliers.com

researcHer: Thailand surachet Kongcheep senior Manager | research email surachet.kongcheep@colliers.com

This report and other research materials may be found on our website at www.colliers.co.th. Questions related to information herein should be directed to the research department at the number indicated above. This document has been prepared by Colliers international for advertising and general information only. Colliers international makes no guarantees, representations or warranties of any kind, expressed or implied, regarding the information including, but not limited to, warranties of content, accuracy and reliability. Any interested party should undertake their own inquiries as to the accuracy of the information. Colliers international excludes unequivocally all inferred or implied terms, conditions and warranties arising out of this document and excludes all liability for loss and damages arising there from. Colliers International is a worldwide affiliation of independently owned and operated companies.

Accelerating success.
www.colliers.co.th