Beachfront property targeted

Charn Issara Development Plc anticipates strong growth in the Cha-am and Hua Hin property markets due to higher demand from both Thai and foreign buyers, says managing director Songkran Issara.

Despite the market slowdown in recent months due to the low tourism season, Mr Songkran was confident that the property market would grow into next year as land plots available for future development are limited.

Consequently, beachfront land prices have risen continuously to about 120,000 baht per square wah, double the price a few years ago in same location of about 40,000 to 50,000 baht per square wah.

Phanom Kanjanathiemthao, managing director of Knight Frank Chartered, said the property market, especially resort condominiums, had expanded with the growth in tourism. Average room rates at four- to five-star hotels have jumped to about 4,000 baht per night, compared to 2,300 baht in 2001. More condominiums have been developed in Hua Hin and Cha-am and selling prices have risen significantly since this destination is popular among Bangkok residents. The expansion of Phetkasem Road and Hua Hin hospital to 1,000 beds has encouraged growth.

Charn Issara also tapped this market with the development of its 1.4-billion-baht Baan Chaan Talay on a 14-rai beachfront plot in Cha-am. The project would house 175 units at prices starting from 3.2 million baht.

It has signed a contract with Wisavapat Co to build the project, which is scheduled to be completed in early 2009. About 40% of the project has been sold, and the company expects 60% to be sold within this year.

CI shares closed yesterday on the Stock Exchange of Thailand at 4.04 baht, up four satang, in trade worth 126,000 baht. Bangkok Post.