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New Home Demand in Phuket

By on Jul 18, 2012 in Property News

Despite global economic uncertainty, hotels benefited from an increase in arrivals with rising average occupancy rates, while overall, the resort residential property market remains solid on values, but quiet, in terms of new launches of both vliias and condominium projects, according to CBRE Research’s Q1 2012 Phuket Property Report.

The research indicated that there are some significant changes in several sectors of the Phuket market. Q1 2012 was a record first quarter for tourist arrivals 594,999 domestic and 730,667 international passenger arrivals.

Phuket tourism continued to grow with expansion coming from Australia, China and Russia.

Hotel also benefited from the increase in arrivals with average occupancy rates increasing to 82.7% from 80.5% in Q4 2011. Luxury and firstclass hotels being the best performers in terms of occupancy. The average achieved room rate of these hotel grades were Bt22,835 (6.8% Y-o-Y) and Bt7,425 (5.0% Y-o-Y), respectively.

There are currently 13,171 keys in 83 existing upscale hotels and 5,471 keys under construction in 3. hotels due for completion by 2014.

David Simister, chairman of CBRE Thailand said that new supply is not confined to the West Coast, but shows a wider geographic footprint including Koh Siray, which is located east of Phuket Town on a peninsula.

For the resort residential property market, developers have focused on clearing inventory. Notable new launches include the Malaiwana condominium and beach club, a luxury product, which is part of a larger successful villa development, with an average price of Bt80 million, while the Vertigo Villa project on Surin beach has price ranging from Bt60-90 million.

Malaiwana has set new standards in luxury living as one the premier residential estate on the island. An award-winning private residential estate on the island. An award-winning private residential estate of 19 villas and 12 residences overlooking Naithon Beach and the Andaman Sea on “Phuket’s magnificent west coast.

Malaiwana is also home to UP Beach Club, Phuket’s most exciting new oceanfront rendezvous, offering both beach and cliff top location and a variety of entertaining options.

Vertigo has launched 16 luxury villas for sale in the lush hills above Suring Beach on the Island’s west coast. This project enjoys panoramics sea views and ultra-exclusive tropical lifestyle in superbly designed modern homes with top-quality facilities.

With a choice of 3 or 5 bedrooms, each villa is designed to provide a fantastic island lifestyle.

A new residential market has also emerged, with non-beachfront, non-resort condominiums, developed by well-known Bangkok listed developers, such as Sansiri and Supalai. New off-plan projects have been successfully selling condominiums island, aimed at local Phuket residents, mainly studio units, sized 29-37 square metres, with average prices at THB 1.5 million. It remains to be seen how deep market demand is in this sector and what else may come to the market.

Based o nthe survey in Q1 2012, 60 resort villas were sold. Sales were spread across all price ranges. CBRE segments the villa market into below Bt15 million, Bt15-35 million, Bt36-90 million, and over THB 90 million. Villas below Bt15 million made up 50 % of the sales, but at the top of the market, two sales were recorded in excess of Bt120 ,illion.

The Sava located across the Sarasin Bridge in Phang Nga province has reportedly sold all seven villas at the prices ranging from Bt62-180 million, three of which were sold in this quarter.

In the resort condominium market, the report shows that 84 units were sold in Q1 2012. Sales were concentrated in Five project, where the main slaes were one bedroom units with average prices of Bt5.9 million. there are now about 3,700 completed resort condominium in Phuket.

In comparison with Pattaya, there are 22,000 completed condominiums and a further 21,500 under construction. the main product in Pattaya is the Bt2-3 Million, one-bedroom condominium.

“Despite healthy increase in tourism arrivals, CBRE is not, for now, seeing a porpotional increase in sales in the resort property market. The rising tourism numbers are mainly from Asia, whose tourists have yet to become resort property buyers,” said Simister.

Over time, repeat tourists are expected to create fresh buying demand and new products will emerge to match their requirements. The quarterly report is essential reading for anyone involved in hotel and residential developments in Phuket. 

Source : The Nation 18 July 2012

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