Property demand returns to Phuket

PHUKET: The last quarter of 2011 saw the dramatic recovery of the Phuket property market, with the return of demand for Phuket villas and condominiums. Many European-based investors in the property market are taking a look at returning to the market.

Saturday 19 May 2012, 02:06PM

Risinee Sarikaputra is positive about the future of Phuket properties.

Research by Knight Frank Thailand has shown that as of the end of Q1 2012, the accumulated condominium supply was 6,094 units. During the first quarter of this year, there were 493 units from 8 projects added to the condominium supply.

The accumulated villa supply was 1,880 units, with around 108 units from 5 villa projects added in Q1 2012.

Risinee Sarikaputra, Associate Director of Knight Frank Thailand Research and Valuation Department said that there has been an increase of Russians and Singaporeans looking for holiday homes in Phuket.

Sava project, located at Natai beach, made headlines with their selling of their latest three ultra villas, with each one costing over 100 million baht per unit. The transaction created an undercurrent of new interest.

Ms Risinee said, “Singaporeans are looking for holiday homes due to the tighter curbs on local property. However, they are interested in acquiring villas that cost less than half of what one would pay for a similar property in Singapore.

The main purchasers of premium real estate on the island, with transactions ranging from 7-12 million baht a unit, are also concerned with rental returns. Miss Risinee added that Saiyuan Estate, located at Naiharn beach had sold 20 out of 26 units in just six months, with a selling price of 8-12 million baht per unit.

Royal Phuket Marina also launched their third phase of condominiums, selling from 4.9 million baht per unit, at the end of March, 2012.

Ms Risinee said that many investors are also in the planning stage of returning to Phuket, for example, the huge mixed-use project ‘Boat Avenue’ located in Cherngtalay at the entrance of Laguna. The project will consist of a retail community mall, condominium and villa projects.

Amari Estate are planning a build of around 190 condominiums in Patong, which will see competition from the other new development in Patong: Emerald bay. There are also many ‘ultra villa projects’ planned for the areas located near Natai beach.