Thailand's leading real estate agent

Local Firms Tap Potential of Phuket

By on Jun 14, 2013 in Property News

Local Firms Tap Potential of PhuketCBRE Thailand said there was a “significant change of direction” in Phuket’s real estate market that began late last year.  This change is driven by a number of factors such as the entry of listed builders, a trend towards smaller units and a sharp rise in local buyers.  Phuket has been until now a mainly foreign dominated market.

The success of some projects by developers such as Sansiri and Supalai has spurred more players to consider punting in Phuket.  Many hope they can see a repeat of the condo craze that had swamped Pattaya and Hua Hin.

This model is characterised by the construction of smaller units that offer a lower entry price.  Most locals cannot afford nor want Bt100-million beachfront villas.  CBRE believe this may be the start of a new boom in Phuket.

At the end of 2012, Laguna Resorts & Hotels launched Laguna Shores at the integrated resort.  The project features small unit from 42 square metres with prices under Bt4 million.  This was followed in the first quarter by the launch of Baan Mai Khao by Sansiri, which has attracted some locals.

Another project that began presales is Amari Residences Phuket, a hotel-serviced residence located in Patong.  Backed by Italthai Plc, the development is managed and serviced by Amari Phuket Resort.  It is offering a 6-per-cent guaranteed yield for the first 3 years.

“Having been involved in the Phuket property market for the past 25 years, this is the most significant change we’ve seen in the market since 1997,” said David Simister, chairman of CBRE Thailand.   It has renewed interest in the market from developers and buyers.  The launch of new projects comes after many years of slump, triggered by the Wall Street Crash of 2007-2008.

For the rest of the year, CBRE also believes there will be continued activity. Units below Bt10 million should do well.  The top-end villa market (Bt125 million to 250 million, whilst limited in volume, will still be sustainable in the longer term, the agency said.

Source : The Nation 14 June 2013

No comment





 

emailSubscribe Via Email

Privacy guaranteed. We will not share your information.

Follow Me on Twitter

Follow Me on Facebook

Subscribe via RSS Feed

Copyright © 2020 CBRE (Thailand) Co., Ltd. All Rights Reserved.