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Property markets in resort destinations such as Cha-am and Hua Hin are expected to slow down like others nationwide in the fourth quarter, but prospects are promising, with the planned development of Bangkok-Hua Hin high-speed train and Pattaya-Pran Buri ferry port.
According to Surachet Kongcheep, associate director for property consultant Colliers International Thailand's research department, the new infrastructure projects the government is planning to develop will help attract demand for property in the two resort destinations.
The Bangkok-Hua Hin high-speed train, which covers a distance of 165 kilometres and is worth around 94 billion baht, is expected to increase interest and demand for property in the resort town.
It is one of the four routes the government plans to start construction next year, according to the Transport Ministry.
Other projects include the 253km Bangkok-Nakhon Ratchasima route under 179-billion-baht Thai-Chinese joint development; the 382km Bangkok-Phitsanulok rail track under a 224-billion-baht Thai-Japanese venture, and the 194km Bangkok-Rayong route worth about 152 billion baht.
The East-West ferry project to link Pattaya and Hua Hin is expected to start operations in 2020.
"Bangkok property market is now quiet," Mr Surachet said.
"The property market in tourist destinations are even quieter, as it is not actual demand for residences, but for a second home," he added
According to Mr Surachet, for the first four months this year before the government's property tax incentives expired in April, developers in Cha-am, Hua Hin and Pran Buri focused mainly on selling ready-to-transfer units rather than launching new projects.
"Early in the year, all developers had postponed the launches of new projects from the first half to the fourth quarter," said Mr Surachet.
"Now they have postponed again to next year as the market sentiment is not favourable and economy remains sluggish," he noted.
In the first half, there were only 390 residential units launched in Cha-am, Hua Hin and Pran Buri.
However, there are a number of residential units launched over the past few years that are still available on the market.
"Developers are concerned about consumer confidence as Thailand's economic situation remains fragile, thanks to many negative external and internal factors," he said.
According to Colliers, new residential launches in Cha-am, Hua Hin and Pran Buri has dropped constantly over the last few years, causing a slowdown in supply.
Last year there were around 2,000 units launched, a 50% drop from 4,000 units launched in 2014.
Average take-up rate of low-rise units in the first half was 74%.
Average take-up rate of condos was about 70%, a slight drop from the second half last year.
Buyers were lost their confident in some condo projects and cancelled their reservations, reducing take-up rates.
In the first half, the average prices of both condo and low-rise units stayed flat when compared with the second half of last year, as many completed residential projects capped selling prices to attract buyers to offset the market slowdown and bolster take-up.
Demand for residential units priced between 3 and 5 million baht continues to grow, mainly from Thai buyers.
Credit: Bangkok Post
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