One of the former most famous beaches in Thailand is set to see a flow of promotion from government agencies and the private sector in a bid to bring waves of foreign tourism to Bangsaen beach.
Geographically, the beach is appealing, being a 90minute drive from Bangkok.
The property market, particularly that of condominiums, are highly sought after in Bangsaen.
“The main drivers for the condominium market in Bangsaen are the students of Burapa University. This is due to some of them buying or renting condominium units during their study years and then selling or renting them to other students when they graduate,” analysed Surachet Kongcheep, senior manager of research at Colliers International Thailand.
Each year there are over 5,000 enrolling students, making them the driving force behind project plans as well as in the leisure and retail market.
“In addition, speculators or investors were buying condominium units and then leasing their units to students,” he said.
Many condominium projects were launched over the last four to five years. The amount of projects are increasing each year, with approximately 2,340 units in 2011 – the highest recorded in Bangsaen and Angsila, reported Colliers International.
Of the developed units, 1,400 were located in northern Bangsaen. In southern Bangsaen, 720 units were launched. In Angsila, a significantly lower number of new units were recorded, at 220 units.
Mr Krongcheep said: “Although only 235 units were launched in the first four months of 2012, there are many more projects still in the pipeline and scheduled to be launched in 2012.”
The Colliers International report found that the average take-up rates were similar, across the areas, at more than 60 per cent.
“The average take-up rate in Angsila is the highest, because the projects there were launches prior to 2008, while most projects in northern Bangsaen were just launched in 2011, so the take-up rate is the slowest,” said Mr Kongcheep.
The average selling price depends on location, quality of materials and facilities.
“According to our research report, the selling prices of condominium units in the Bangsaen and Angsila area start at THB 50, 000 per unit and range up to THB 5million per unit.
“The average size of a one-bedroom unit is not more than 38 sq m, due to all developers needing to keep selling prices under THB 2million per unit,” said Mr Surachet.
The average rental rate of a one-bedroom condo in Bangsaen is approximately THB 6,000-7,500 per month, depending on furniture and electrical appliances.
“The Bangsaen condominium maket still has room to grow at a similar rate as the last two-three years, but it still cannot compete with Pattaya and Hua Hin,” concluded Mr Surachet Kongcheep.
By Laura Neve Tacey.
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