Phuket Condo Information

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Phuket Condo & Associated Information

Phuket has established itself as a global resort destination, offering a range of luxury villas, condominiums and apartments for sale. Phuket properties are comparable to those offered in the Mediterranean and Caribbean, at a fraction of the price.

Widely accepted as the pinnacle of the Asian resort market, the Phuket condo market has expanded since the 1990’s in line with the growth in its tourism. The Phuket condo market is well positioned with the island’s supporting infrastructure including world-class amenities and leisure facilities and an International Airport offering good accessibility. Many investors choose to invest in the Phuket condo market as it offers a combination of western luxury and an exotic tropical lifestyle.

In recognising the long-term potential of the Phuket property market, CBRE opened our Phuket office in 2004. Our sales team of Thai and expatriate staff are experts in the Phuket condominium market. The CBRE team has some of the broadest market knowledge in the industry and is able to offer valuable insights for buyers and investors interested in purchasing in Phuket.

 
Phuket Condo/Apartment Ownership:
Thailand has specific definitions that describe the difference between an apartment or condo, and whilst different parts of the world use either apartment or condominium to describe what is essentially the same type of property, Thailand does not.

In summary, foreigners can buy and hold Thai real estate through a variety of ownership structures and land titles. The three most common forms of ownership used by foreigners to hold Thai real estate are leasehold, freehold through a condo title, and freehold through acquisition by a Thai company.
Below are the definitions of condominiums and apartments in Thailand:
  1. Condominium: A multi unit building where there is freehold ownership of individual units and a common interest along with all the other owners in the land and common areas. In some countries this is called strata title. A condo unit is registered at the Land Department and each individual unit has its own title deed. Foreigners are allowed to own up to 49% of the total floor area of the condominium building on a freehold basis.
  2. Apartment: An apartment is a residential building held in single ownership on an individual title. Individual units are leased on a series of 30 years term which is registered with the land office.
View Phuket condo / Phuket apartment listings
 
Phuket Condos: Types & Classifications
Phuket condominium and apartments can be classified into the following grades:
Luxury Condominium/Apartment:
Prices of luxury condo units in Phuket are usually above THB 110,000 per sqm. Most luxury Phuket condos are located on prime sites offering good ocean views with close proximity to the beach. They are located in low-density developments offering a high level of privacy. Luxury condos are managed by professional management companies, or in some cases hotel-managed. Common area facilities include pool and gym. Penthouses in many luxury condo developments also feature a private pool, for example, Baan Mai Khao and Andara Resort Residences.
High-end Condominium/Apartment:
High-end Phuket condos are typically priced between THB 90,000 to 109,000 per sqm. Not all high-end condos in Phuket offer good ocean views, but many do and most are located in close proximity to the beach. High-end condos are managed by professional management companies and include common area facilities such as pool and gym.
Mid-range Condominium/Apartment:
Mid-range Phuket condo units are typically priced between THB 60,000 to 89,999 per sqm. Most mid-range condos do not offer ocean views, but are located in close proximity to the beach. The price of a one-bedroom unit in a mid-range development starts from approximately THB 5 million.
Entry-level Condominium/Apartment:
Entry-level Phuket condominiums are typically priced under THB 60,000 per sqm., for example, Kamala Regent and Kathu Golf Condo.
Phuket Condo Locations:

There has been a diversification in locations being developed in Phuket and condo/apartment developments are spread across the island. The west coast was the original centre of development where many condos today are located. As prime ocean view west coast sites have been taken up, the once overlooked east coast now sees an increase in the number of exclusive developments. (View Phuket Map)

West Coast
The stunning beaches of the west coast from Nai Thon down to Kata Noi are the centre of Phuket's tourism, with the initial developments concentrating around the Patong area. Today, an extensive number of condo/apartment developments are located on the West coast, spanning from mid-range to luxury developments. Kamala is also a popular area for condo developments with projects such as Andara Residences, Plantation and Kamala Falls located there.

North Coast 
With the shortage of west coast beachfront land, a number of property developers have moved up to the beaches on the north of the island (Mai Khao and Nai Yang), these offer close proximity to Phuket International Airport. 

East Coast
With a limited number of prime sites available on the west of Phuket, the east coast, with its stunning views across Phang Nga bay, is now seeing rapid development. Many of Phuket’s luxury condo developments are located on the east coast including Tawan Views and Baan Yamu condominium. Unlike the development pattern on the west coast where a range of property grades are offered, the east coast developments concentrate on the high-end and luxury segments.

South Coast
The distance from the Phuket International Airport and golf courses has resulted in a slower pace of development. The area is not as extensively developed compared to the west coasts and most developments found in the south coast are mid-range condo developments.

Inland
Most condo developments located inland are entry-level projects targeting the local market. Inland developments are situated near hubs of activity such as Phuket Town.

Purchase Options:
Re-sale Condos:
Re-sale condos are second-hand properties offered for sale by individuals, as opposed to sales directly from the original developer. These properties can be under construction (off-plan) or completed. To date, Phuket has had a limited market for re-sale condos as most buyers tend to be long-term investors and occupiers of their condos upon completion. However, the market for re-sale condos is a growing and maturing market.
Completed Condos:
Condos that have completed construction and are available for viewing. This type of condo purchase carries no development risk as the property is already constructed and buyers can also see the exact quality of finishing and design, which is not possible for off-plan purchases.
 
Off-plan Condos:
Off-plan condos are condos sold whilst the projects are under planning or construction. To minimise development risk in purchasing an off-plan condo, it is important to buy from a reputable developer. Most quality developments selling off-plan have show units available for viewing. There is often an appreciation potential for off-plan properties upon completion as off-plan sales are usually offered at a discount.
Investment Condos:
There are a number of developments positioned as investment properties with rental guarantee offers. Investment properties have owners’ usage restrictions as the units are part of a compulsory rental programme. The level of guaranteed returns varies from 5% to 8% for a period of 1 to 6 years and an annual owners’ usage of 45 to 60 days, depending on each project.
Investing in Phuket:

Having discovered Phuket as tourists, many then choose to invest in its property market, and buy a second or retirement home, or a property to rent out.  With its outstanding white sandy beaches, unparalleled hospitality, tropical climate, great value for money, beautiful diving sites and some of Asia’s best golf courses, the Phuket property market is well positioned, making it a popular holiday home destination.

The island now has in excess of 3,500 condo owners. For the past ten years, Phuket offers property buyers a lifestyle investment with good potential for capital appreciation. Investors have experienced an average capital appreciation of 20% to 50% per annum for prime beachfront or sea view locations, although some properties have seen the value of their asset rise by as much as 100% between the launch and completion.

Lifestyle/ Leisure/ Infrastructure

Phuket currently has over 150 hotels & resorts along with an extensive sporting and leisure facilities. The island has a total of six golf courses including Blue Canyon Country Club, Laguna Phuket Golf Course and Mission Hills, and four marinas providing a total of 655 marina berths. As the Phuket’s tourism and property market has matured, there is also an expanding choice of upmarket dining and entertainment venues.
The island’s infrastructure is also well developed with an International Airport, 6 major hospitals and 3 international schools. The development of Phuket’s infrastructure and extensive leisure facilities has complemented the growth of the island’s real estate market over the years.

Weather

Phuket has a balmy tropical climate and a fairly consistent temperature all year round (25 to 35 degree Celsius), with its best weather during the European winter. There are two distinct seasons in Phuket- the dry and green season. Phuket’s weather is at its best when the dry season starts in November through to January, while March and April are the hottest months. The green season runs from end-April to November when the rainfall is at its peak. (Phuket overview page) 

Access to/from Phuket

Phuket arrivals exceeded 5 million in 2012.  Served by a total of 42 airlines (14 of these are chartered airlines), the Phuket International Airport offers flights to destinations including Hong Kong, Singapore, Kuala Lumpur, Moscow, Seoul and numerous others. 

Phuket Condo Market Research:
This section outlines some of the findings from the CBRE Phuket Property Report, a quarterly subscription report which brings professional analysis and transparency to the growing Phuket villa market.(Phuket Property Report Page)

Quarterly Highlights:
  • Around 90% of total units sold were from entrylevel projects with a price range between THB 2 – 8 million.
  • The condominium market has continued to be mainly driven by investors rather than end-users.
  • One entry-level condominium project (below THB 8 million per unit) was launched with 139 units.
Phuket Condo Supply:

phuket condo sale

Prior to 1990, there were almost no condominiums for sale in Phuket as the island was still relatively unknown as a resort destination. The first condominium was completed in the late 1980s in the Kalim area, but there was still virtually no activity until the development of the Allamanda project at Laguna. This report tracks the condominium market from 2004 to the present. In 2004, the base year for our analysis, the total condominium supply was estimated to be 447 units. As Phuket’s popularity increased as both a tourist and resort home destination, the condominium market grew and the total supply more than doubled to 1,322 units in 2006. From then, the total supply has continually increased from 1,322 units to more than 3,000 units in 2010.

In Q2 2016, the supply of completed condominium projects grew to 6,509 units, a 16.1% Y-o-Y growth. There were 4,553 units in the pipeline, which were expected to be completed by 2019.

Phuket Condo Market Summary:

Investment continues to be the main driver for buyers to purchase condominiums in Phuket. We saw a mix of nationalities of buyers. Chinese buyers were the majority of investors especially in the entry-level condominium market.

The Phuket condominium market showed signs of recovery with a 33% increase in sales compared to the same period last year. However, there was demand in only certain segments and for a limited number of projects.

Entry-level units were best sellers, 90% of the total sales were entry-level projects in this quarter. There was one entry-level condominium project launched this quarter.

New condominiums projects are more popular than older ones.

The resale market is slow as there is a significant gap between the prices that sellers want and the price purchasers are willing to offer. The increase in units being offered for resale is partly due to the owners using the properties less and getting rental income has proved harder than expected in those developments not attached to a hotel.

Moreover, the local government of Phuket has issued notices to restrict daily rental activity (less than one month) without a hotel license. This law was largely ignored but it is now being implemented which makes it even harder for property owners to get rental income.

There is no speculator market for resort condominiums where people buy off plan and intend to resell prior to completion. This is partly due to the payment scheme in Phuket where the majority of the price is paid during the construction period, unlike in Bangkok where the largest portion of payment is due at the project’s completion.

For further information on the Phuket property market, download our latest Phuket Residential MarketView.

Property Purchase Guidelines:

Phuket Property Payment Terms
The majority of properties in Phuket are sold off-plan or in a partly built state. Buyers will always be asked to pay a reservation fee. This secures the property which will then be taken off the open market. Then, some time (usually 30 days) is given to allow for legal work to be completed before the first payment is due on signing of the contract. Thereafter payments are usually split according to construction milestones.

Here is an example:

  • Signing of agreement: 20%
  • Completion of condo footings or pilings: 20%
  • Completion of columns, floor slabs and roof frames: 20%
  • Completion of condo shell, including external doors and windows: 20%
  • Substantial completion of the condo: 20%

Sinking Fund

In a new villa or condominium project, each owner will pay an initial amount into a sinking fund on transfer of ownership of the property. This will be used for major renovations in future and repairs which are outside the operating budget.

Common Area Management Costs

In a villa or condo development, specifically appointed property managers, such as CBRE, will normally be responsible for managing all aspects of the common areas.

This service normally includes:

  • 24-hour onsite security
  • Maintenance and irrigation of all common area landscaping
  • Cleaning and maintenance of all the communal areas
  • Management office and staffing as well as ancillary costs, accounting and Insurance
  • Electricity and water supply in the common areas, Refuse collection and Pest control
The property management company reports directly to the owner's committee on management issues and the financial status of the project. (Property management)

Contact Us

For information or any advice,
please contact
Prakaipeth MeechoosarnDirector - Resort Property

Phone: +66 81 538 6879 (mobile), +66 76 689 991
Fax: +66 76 689 919

CBREThailand
Director - Resort Property
prakaipeth.meechoosarn
Sales Staff

Useful Research

Phuket Hotel MarketView Q3 2016 More
Phuket Residential MarketView Q3 2016 More