The Hua Hin property market is emerging as a relative bright spot in Thailand’s challenging real estate sector, supported by sustained foreign demand that is helping to offset weak domestic purchasing power.
Prachuap Khiri Khan, particularly Hua Hin, has stood out in a national market weighed down by high household debt, tighter lending conditions and slowing residential transfers. A new report highlights the province as one of the few areas recording growth in foreign condominium ownership, even as overall activity across the country declines.
Nationwide residential property transfers are projected to fall by about 6 percent in 2025. At the same time, household debt remains close to 90 percent of GDP, limiting the ability of Thai buyers to secure mortgages and enter the market.
Foreign demand supports Hua Hin property market
According to data cited in the report from the Real Estate Information Center (REIC), condominium ownership transfers to foreigners rose by 2.3 percent year-on-year in the third quarter of 2025. However, the total value of those transfers fell by 17.2 percent, reflecting a shift towards lower-priced units.
The decline in value has been linked to a slowdown in purchases by Chinese buyers, historically the largest foreign group in Thailand’s condominium market. In response, developers and agents have increasingly targeted buyers from Taiwan, Myanmar and Europe, as well as high-net-worth individuals seeking so-called “safe haven” assets.
While several provinces recorded steep declines in foreign transfers, Prachuap Khiri Khan moved in the opposite direction. The report shows the province adding around 200 foreign condominium transfers during the period, bucking the national trend.
Analysts attribute Hua Hin’s performance to its appeal among European buyers, particularly Scandinavians, who are looking for short- to medium-term holiday homes or semi-permanent residences rather than speculative investments. This lifestyle-driven demand has provided a steadier base compared with markets that were heavily dependent on one dominant buyer group.
Domestic purchasing power remains under pressure
The report underlines that the growing reliance on foreign buyers reflects structural weaknesses in domestic demand. High household debt and stricter loan approval criteria have reduced access to mortgages, particularly in the mid- and lower-end segments of the market.
Townhouse transfers nationwide are expected to fall sharply, and developers have reported repeated resale attempts on the same properties after buyers failed to secure financing. As a result, many firms have delayed new project launches or shifted their focus towards developments aimed primarily at foreign purchasers.
Resale properties are also taking up a larger share of activity. By 2025, second-hand homes are projected to account for about 56 percent of residential transfers, well above pre-pandemic levels.
In this environment, foreign demand has acted as what the report describes as a form of “life support” for the sector, helping to stabilise premium and luxury condominium markets even as mass-market segments contract.
Why Prachuap Khiri Khan is outperforming other provinces
Within Prachuap Khiri Khan, Hua Hin has been singled out as a location that aligns closely with shifting foreign demand. Developers have focused on smaller, more targeted projects aimed at expatriates and repeat visitors, rather than large-scale mass developments.
Growth in Hua Hin has been driven largely by Europeans seeking lifestyle-oriented properties instead of purely investment-driven buyers. This has allowed the local market to remain relatively resilient compared with destinations that previously relied heavily on Chinese demand.
In contrast, provinces such as Chonburi and Chiang Mai have seen significant declines in foreign transfers as demand from China weakened, exposing their reliance on a narrower buyer base.
Elsewhere in the south, Phuket and Koh Samui have also recorded strong growth, though at a different scale and price point. Phuket, in particular, has repositioned itself towards higher-value foreign demand, supported by investment in healthcare facilities, international schools and long-term leasehold developments.
The report contrasts this model with Hua Hin’s more modest, lifestyle-driven appeal, suggesting that Prachuap Khiri Khan benefits from being less dependent on luxury speculation and more aligned with repeat visitors and residential buyers.
Foreign ownership seen as stabilising force
The report argues that, given current economic conditions, foreign participation in the property market should be viewed as a stabilising mechanism rather than a risk. With domestic demand constrained, sales to foreigners provide liquidity for developers and support related industries such as construction, furnishings and services.
It adds that, as long as foreign ownership remains regulated and focused on appropriate segments such as condominiums and long-term leases, it can help sustain the sector until domestic purchasing power recovers.
For Prachuap Khiri Khan, and Hua Hin in particular, the data suggests that this balance has so far been struck more effectively than in many other parts of the country, allowing the province to stand out in Thailand’s challenging real estate market.