Demand can’t ease Cha-am condo market oversupply

Demand can’t ease Cha-am condo market oversupplyClick here to download your copy of the Dot Property Group Hua Hin Real Estate Market Update!Earlier this year, Knight Frank Thailand reported that there were nearly 6,500 unsold condo units in Cha-am. This pales in comparison to the 1,016 on the mar…July 26, 2022

Demand can’t ease Cha-am condo market oversupply

Earlier this year, Knight Frank Thailand reported that there were nearly 6,500 unsold condo units in Cha-am. This pales in comparison to the 1,016 on the market in nearby Hua Hin. Despite this, demand in Cha-am remains relatively limited as most property seekers pass on opportunities here in favor of its more well-known neighbor.

One reason for that likely has to do with marketing. Cha-am has tried to brand itself as being an extension of Hua Hin. Property seekers do not seem to buy into that narrative and continue to ignore this area in favor of the popular resort town despite increased competition for condo units there.

A possible solution would be for developers and real estate agents with Cha-am condo units to focus less on what’s nearby and instead promote the area as a destination in its own right. While this strategy is by no means guaranteed to work, at least it cannot be undone by a potential property seeker simply looking at a map.

One difference between the Hua Hin and Cha-am condo markets is what type of units people are looking for. Data from the Dot Property Group found 53.1 percent of all enquiries made between October 2021 and May 2022 were for two-bedroom condos. This total was 38.2 percent in Hua Hin.

With no new projects having launched in Cha-am in more than year, developers with unsold inventory may want to consider converting studio and one-bedroom units into ones with multiple bedrooms in order to tap into current demand and further differentiate itself from Hua Hin.

Unsold Condo Supply At The End Of 2021*

Cha-am

Hua Hin

6,468 units

1,016 units

*Data from Knight Frank Thailand