With developers expanding investment in Hua Hin in response to strong demand from foreign buyers, land prices in the district have been rising at a rate of 30 per cent a year.
Property companies have poured Bt20 billion into projects in Hua Hin over the past year. This has driven up prices of land close to the beach from between Bt5 million and Bt8 million per rai last year to the present Bt10 million per rai.
Land prices in Hua Hin have been rising at a rate of 30 per cent every year with foreigners showing interest in buying property in the district, Supharat Group managing director Sumeth Sukapanpotharam said.
Most of the foreign investors are looking to buy a second home, he said. Earlier, the district attracted mainly local or Bangkok-based buyers looking to buy a second house or a vacation home.
Hua Hin is just an hour-and-a-half's ride away from Bangkok.
But now, more foreign buyers are showing interest in projects in the district and that has driven up the price of both land and residential projects, Sumeth said.
Supharat Group is developing a luxury, detached-housing project, Pran-A-Luxe, worth Bt660 million in the district.
Blue Lotus Hua Hin (Thailand), a joint venture between Thai and Dutch investors led by Han Hakvoort, is developing The Banyan, a Bt8-billion project on 2,000 rai of land at Hua Hin. Hakvoort is the managing director of Blue Lotus Hua Hin.
The Banyan offers an 18-hole golf course, 186 villas, a four-storey condominium building with 202 units and a shopping mall.
The prices of the villas range from Bt4.5 million to Bt30 million. Prices of the condominiums start at Bt6,000 per square metre.
The demand for residential projects in Hua Hin has seen strong growth because of its peaceful environs and easy accessibility, Hakvoort said.
Many listed developers have also been expanding investment in residential projects in Hua Hin. For instance, Sansiri launched a Bt2.06-billion project, Baan Sansuk, in the first half of the year and has sold 80 per cent of the project value.
Major Development is planning a new luxury-condominium project worth Bt3 billion in Hua Hin.
Research by Colliers International Thailand has shown the demand for residential projects in Hua Hin registering strong growth.
The demand has shifted from local and middle market to foreign and middle to upper market, the company said.
The strong demand over the past two years has jacked up prices of residential projects in Hua Hin from between Bt45,000 and Bt50,000 per square metre to between Bt66,000 and Bt80,000. Nation