Facts and ForecastsThailand is doing very well in this world. Unemployment only 0.6% and foreign exchange reserves have climbed to a record high of more than 48 billion dollars.
Prices and salaries are still low. Inflation is around 5% and average salary under 7,000 Baht per month. The boom in construction gives higher prices for construction material (steel prices up by 70% over the last 12 months) and petrol prices are affecting the transport cost. The economic growth for 2006 was 4.5%. At the moment petrol prices are going down from 42-43 Baht to 33-34 Baht.The market of this popular Thai resort is booming. Hua Hin is only 21 kilometres long and about 3 kilometres wide. Beyond these 3 kilometres there are mountains where construction is not allowed. Of this area, around 63 square kilometres, is over half already occupied by houses, hotels, roads, railroads, golf courses, and a royal palace and a military base who occupies a lot of land that is for government use only. There is also a canal system to prevent flooding that also occupies space.
In theory there are around 10 – 15 square kilometres that is available for development.
Condominiums, hotels and guesthouses occupy the beach. The old city core between the hotels and Petchkasem road is full, and in the west between Chulapataan road (canal road) and Petchkasem road there is the railroad where land is hard to sell. All this land that is considered to be attractive, most is already sold.
Most new developments is now located west of Chulapataan road. Prices on real estate have been going up with about 30% per year during the last 3-4 years.