Story :  Liz Smailes   
Images : courtesy of resorts
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The quaint and seemingly insignificant seaside village of Cha Am attracts a bigger market share of the property market demand than Phuket, Samui and Pattaya.

Sometime between 200 A.D and 600 A.D Portuguese explorers sailed their outrigger canoes into what is now called Cha Am bay, on the east coast of Thailand, and were soon transformed. Water, mild and clear, and sea breeze cooled the humid air. An abundance of flora and fauna suggested a vibrant living environment.

The place was so idyllic that rival chieftains would later share sanctuary there in peace. One leader probably said to his counterpart, “You know, if we built a hotel or two, and developed a couple of dozen oceanfront lots while the market is still hot, we could really live like kings”. Okay they didn’t say that, but they should’ve, and now someone is finally finishing the job!

Drivers pass through Cha Am on the way from Bangkok to Hua Hin, but these days investors might want to take a break here, put their feet up and possibly look no further. Hua Hin and Cha Am is a 3 hour drive south of Bangkok, and the long-time resort destination of choice among Thai residents and golf enthusiasts. According to the latest Raimon Land Condominium Report, a consistent growth each year in tourism has seen Hua Hin/Cha Am receive just under 6 million visitors in 2006.

Developers predicted the surge, just as my fictional Portuguese friends above fantasized, and in 2003 and 2004, five new developments in Cha Am saw 430 condominium units enter the market. In 2005 and 2006 another 364 units divided amongst four projects followed, along with a surge in high-end boutique resorts. The latest one being Alila, and phase two of Alila’s construction is already underway to develop private holiday villas for purchase; completion is expected in 2009.

According to a Raimon Land report, from a total of 665 new units launched in the Thai market in the first half of 2007, worth a total of 6.9 billion Baht, Hua Hin accounted for 45% of the total, compared to Pattaya with 35%, Phuket and Samui accounting for another 10% each.

Due to being just a 20-minutes drive away from the royal residential town, Cha Am falls under Hua Hin’s umbrella and, therefore, it’s unrealistic to refer to one without the other. As the figures above show, the real estate market in Cha Am and Hua Hin is becoming more and more attractive to buyers from within Thailand and abroad. The reasons being, that the market presents great stability of value, defined by a strong and continuous growing demand. While other areas in Thailand have been developed into practically every nook and cranny, and living at the beachfront is in demand as never before, the serene and relatively undeveloped region around Cha Am is a strong and, until now, silent contender for attraction.

Since 2005, the condominium market in Cha Am and Hua Hin has been continually growing in terms of supply and demand. The 45% referred to by Raimon Land equals a total sale value of 3.14 billion Baht (from the 6.9 billion Baht in Thailand for new condominiums in 2007). Low-rise and high-rise condominium development projects along Cha Am and Hua Hin area have been expanded to the hillsides and face the beach or located close to the beach or beachfront. Many condominium projects target to both locals and foreigners looking to buy condominiums as a second home. Already a high proportion of other famous seafarers have, in reality, chosen to settle in Cha Am – the Scandinavians.

From figures above, the total supply in Cha Am and Hua Hin (beachfront) in the first half of 2007 is 292 units. Many high-end housing development projects located on beachfront and mixing project with condominiums such as The Vimanlay, Boathouse Hua Hin and Hua Hin Blue Lagoon Resort. The key reason for the large supply of 2-storey housing in Cha Am and Hua Hin area is the availability of vacant land that provides sea views and / or short proximity to the beach. Furthermore, Law and regulations control beachfront projects developments.

Market research shows that the highest take-up rate of 2-storey high-end housing projects in Cha Am and Hua Hin area is the 15.1-20.0 million Baht price range with about 92% or 22 units from 24 units (Simantra Resort project 5 units, Oriental Beach Cha-am 3 units and Hua Hin Blue Lagoon Resort 16 units).

Unsurprisingly, developers have their eye on the region and foresee a fortunate evolution for the real estate sector in Cha Am/Hua Hin for 2008 and beyond.