Phuket Villa Analysis & Research

Phuket Villa Research: Data Source This is an extract of the CB Richard Ellis Phuket Property Report, is a quarterly subscription report. The report brings professional analysis and transparency to the growing Phuket Villa market which can, for the right projects, generate some of the highest returns in Thailand. Full Phuket Property report   Phuket villa /house listings   The Phuket villa section of the report provides detailed information and analysis from CB Richard Ellis' comprehensive and unrivaled Phuket and Thailand property databases, combined with our own exhaustive market and property surveys, coupled with the latest and most reliable secondary data from governmental agencies and private operators. The reliability and value of the research is the market understanding and expert opinion drawn from over 20 years of CB Richard Ellis' full-scale operations in Thailand. The data focuses specifically on the Phuket Villa market - incorporating villa information specifically.

Phuket Villa classifications We classify a Phuket villa into one of four categories based on price per unit. Classifications are based on the maximum number of units in a project that fall into a category; for example, a project with three luxury, five high-end and two mid-range units would have all units classified as high-end, because we consider the project to be high- end, since the greatest number of units in the project are high-end. For the purposes of this report, we have excluded housing projects that are aimed primarily at the Thai domestic market. Luxury Above THB 90 million High End Between THB 35-90 million Mid-range Between THB 15-35 million Entry-level Below THB 15 million A Phuket Villa classified as high-end and above generally demonstrates common characteristics such as: Good panoramic sea view Easily accessible locations Good and secure neighborhoods, ensuring privacy of residents Good building design, layout and decoration Good standard of construction using high-quality materials and specifications Comprehensive range of facilities, including swimming pool, gym, and/or squash and tennis courts, etc. Professional management / Hotel management Rental program provided

Phuket Villa Areas: Definition West Coast (North) Northern area along the West Coast, including Mai Khao Beach and Nai Yang Beach West Coast (Central) Central area along the West Coast, including Nai Thon Beach, Bang Tao Beach, Surin Beach and Kamala Beach West Coast (South) Southern area along the West Coast, including Patong Beach, Karon Beach, Kata Beach, Kata Noi Beach and Nai Harn Beach East Coast (North) Northern area along the East Coast, from Sarasin Bridge to Siray Island East Coast (South) Southern area along the East Coast including Phuket Bay, Ao Chalong and Rawai Beaches Inland Area in the island’s center

Phuket Villa - Quarterly Highlights The average asking price (for primary sales) was THB 75.8 million per villa. The number of completed villas as at Q3 2011 reached 2,806 units up by 0.18%Q-o-Q. 74% of total villas (completed, under construction, and planned) have been sold. This quarter witnessed strong sales in completed developments. Phuket Villa Supply The villa market was in its infancy prior to 2004, with a total stock of approximately 224 units.  As Phuket’s tourist market expanded, demand for villas grew and the supply of villas reached a peak in 2007 when the number of newly completed villas totalled 794 units in 52 projects.  The villa market was affected by the global financial crisis of 2008 and, although prices held strong, potential buyers started to reconsider their financial position and demand decreased.  In addition to this, developers faced financial difficulties and a number of projects were postponed or suspended and the number of villa completions has now slowed.   There were no new completions in Q3 2011.  The total stock of completed villas decreased slightly to 2,806 units within 195 projects.  This was because we removed Nakatani Evergreen, with 7 units, from our analysis as the project is now only available for rent.  We estimate that there are 1,209 units in 78 projects that are under construction or being planned.   This is an extract of CB Richard Ellis Phuket Property Report Please click for further details  We have further information on the Phuket Villa Market here