Phuket Property Perspectives presented by Phuketbuyhouse.com
With Phuket now being ranked as the fifth top holiday destination in the world, tourism is hotter than ever, attracting more and more buyers per year than ever before. Whether it be for investment or residential purposes, the demand is rapidly growing and we can now see a range of properties available to suit all types of buyers. Not only is there a strong desire to invest, people also purchase for lifestyle choices as well as the dream of owning that second holiday home.
There are many other factors that have also contributed towards the island’s successful real estate industry and furthermore incentivized people to reinvest. We have seen the island develop in many different ways, quite specifically when it comes to the amount of diverse entertainment now available. Phuket now has so much to offer from world exclusive beach clubs to themed water parks and Phuket has tremendously internationalised itself.
There has been an increase in the number of schools, shopping malls and international hospitals built. The Thai baht has also played a role and remained a stable currency causing people to feel more secure about investing in Thailand. In terms of taxation, the taxation is reasonable and much lower than that of most other countries. We have also seen Phuket undergo many infrastructural changes to help support the capacity of a growing tourist market.
Over the years, there have been a number of condominium and villa developments appear all over the island to help facilitate this demand. These include basic entry-level properties to real high-end luxury properties. What is particularly attractive about the market from an investment point of view is that buyers have an opportunity for strong capital growth and high rental returns, which a big factor in their decision is making process. The level of investment is of course area dependent. For example, areas of Phuket such as Rawai, Chalong, Nai Harn Kata, Karon, Patong, Kamala and Surin have experienced the most rapid growth within the last 2 years.
One should also consider that if they are wanting to rent out their property, many now have good rental management companies appointed. Mostly these services are offered by one company and where one can use this to their advantage in their decision-making process if looking to purchase a particular off-plan unit. If this is the case, and the developer has chosen to work with a large, highly credible, national or international rental management company and you consider these large companies have their reputation to uphold, you can expect most of the due diligence will have been one to ensure this will not in any way hurt their reputation.
In the past few years, we have seen an increase in developers building projects that offer a hotel style setting, whereby a large well-branded hotel chain will manage the properties. This new trend seems to be taking shape all over Thailand. What is particularly interesting with this kind of concept is that you are then able to have your property rented out using their brand. Having such a name endorse the project means they have a strong reputation in the rental market and therefore known either nationally or internationally. This gives buyers more confidence in the projected rental estimations provided as their will most certainly be a long-standing proven track record showing returns earned in the past. The good thing is the projected estimations all show a conservative occupancy and average rate for clients to consider. There are a few projects on the island that offer just that.
Phuket is also popular for those who like the idea of rental guarantee schemes. Here you can choose projects offering anything from 7-10% guaranteed return per year to incentivize the buyer and available from three to five years. These are good guaranteed returns if you were to consider banks give little in terms of interest these days, so many would rather invest in property and earn a decent yield each year.
Looking at some of these areas on the island, you have the following properties around…
Kamala has a new upscale development under construction and set along the very exclusive part of millionaire’s mile. The project will offer a 5-star luxury hotel style setting and be managed by the well-known international hotel chain “Ramada Plaza” KAM5469. This is a unique concept as they will offer great facilities such as cable car, meditation garden, very large luxury spa, waterfall throughout the project and iceberg theme style lobby, with large communal swimming pool. The developer is trying to create a tropical paradise setting with the benefits of being right across the road from the beach. Units are all the same studio size at 34 square metres and can be combined to offer 2 bedrooms. Prices start from 3.9 million baht for the garden view and 5.2 million baht for the sea view. Rental guarantee available 7% for 5 years.
Also in Kamala there is a new high-class housing complex consisting of 12 private elite villas with 2 and 3 bedrooms KAM5602, very close to Kamala beach. Villas are designed in a modern style with soft light color finishing to create a peaceful atmosphere and homeliness. This fantastic housing complex includes two bedrooms with a private bathroom, spacious wardrobe and a comfortable terrace overlooking a beautiful garden and a swimming pool. Indoor area is 207 square metres and prices start from 11.9 million baht.
In Bang Tao, there is a Hot Offer BAN5655, which is a great deal and exceptionally good value for money. This 4-bedroom villa is located on a very large property. The size is 1,233 square metres and ready to move in priced at just 28.9 million baht.
Just five minutes away we come to Surin offering another very good high-end development SUR5308 also under construction. The New project is set on the hillside, walking distance from Surin and Bang Tao beaches. The project consists of seven residential buildings presenting stunning panoramic sea views. Designed by the professional team, these condominiums have blended authentic Thai art with modern technologies. The apartments are 36 square metres and 1 bedroom. The project will offer rooftop gardens, five infinity pools, clubhouse, library, fitness spa, sauna and two large communal swimming pools. Units are available from just 3.99 million baht and the option to join their rental program is also available.
Moving up further north, the area of Layan offers this 3-bedroom penthouse apartment LAY5830 and is a total area of 564 sq. m. The location is great as it is just 5 minutes’ drive to Nai Thon beach. The apartment is ready to move in and available fully furnished. Guarded car parking is onsite 24hrs. Priced at 17.7 million baht.
Lately we have also seen the area of Mai Khao expanding with more developments appearing. Just five hundred meters from the white sand beaches of Mai Khao, surrounded by five-star hotels, a 10-minute drive from the international airport and 5 minutes away from an amazing golf club, you will find these apartments MAI5542. Located in one of the elite areas of the island, Mai Khao Beach, the project was designed for the people who appreciate comfort and personal space. This condominium consists of 8 levels and 320 apartments, including units with one and two bedrooms. The residence has been created to strengthen the potential of its gorgeous site stylish tropical theme, constructed using eco-friendly materials. There is a lobby, a reception and a restaurant near the pool, as well as a huge parking lot and 24-hour security. Price starts from 2.4 million baht – unit 36 square metres.
Also in the Mai Khao area, you have this premium-class Phuket beachfront condominium project MAI4866. This property offers a range of layouts and sizes which are ideal for either residential or investment purposes. The entire project comprises of six three-story condominium buildings and three five-story buildings, a total of 206 residential units in sizes from 59.50 to 263.50 square meters. Two-bedroom units available from 87 to 96 square metres. Facilities also include a car park for 100 vehicles, a superb, large and well-maintained garden, swimming pool, a fitness room, WiFi internet and a dependable 24-hour CCTV security system. Moreover, here you are close to many leading five-star hotels, fine international restaurants and luxury spa. Two bedroom units are available here from 9.8 million baht.
South of the island, we have the lovely area of Nai Harn offering this condominium project NAI5797 which is a short 10-minute walk to Nai Harn Beach. This project will offer a total of 237 units with beautiful views of the surrounding mountains and landscape. Construction is due to start in January 2018 and will be completed in August 2019. Units are from 40 square metres and price starts at 4.5 million baht.
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- The Thaiger