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Phuket property prices not just about the beach

PHUKET: While Phuket is an island, most property buyers are led to believe that sea views or proximity to the ocean are a key driver of real estate value – but is this fact, or fiction? According to data from leading online marketplace FazWaz.com the answer lays inside the numbers.

property,

Sunday 15 January 2017, 11:00AM


Once you move inland on the island and the views disappear, the mean average price per square metre for Phuket condos rapidly drops dramatically to B34,000psm at midway point between three and four kilometres from the beach.
Once you move inland on the island and the views disappear, the mean average price per square metre for Phuket condos rapidly drops dramatically to B34,000psm at midway point between three and four kilometres from the beach.

Looking at Phuket’s primary and secondary condominium sector and analysing pricing points from the ocean up to 10 kilometres inland, what is clear is that developers and sellers are not maximising what is one of the leading Unique Selling Propositions/Points (USPs) in the trade – location, location, location.

Based on the Phuket numbers from FazWaz, which lists more than 7,000 condos in Phuket, the average value of condominium units located from the ocean front up to just under two kilometres away is 100,000 per square meter (psm), while the number actually escalates up to B117,000psm at a distance of two kilometres. Getting inside the data, what has driven the later number is actually views versus direct proximity to the beach.

Once you move inland on the island and the views disappear, the mean average rapidly drops dramatically to B34,000psm at midway point between three and four kilometres from the beach.

The storyline here is how developers have used low-cost land and delivered entry-point pricing. Underlying land cost remains a critical component of ultimate condominium pricing throughout Phuket.

As you shift away from the beach to increasingly urban areas inland from four to six kilometres, the pricing surges upward again with many units in the B80,000psm to 120,000psm tier. This recurs again when viewing city properties of eight to 10km with pricing averaging B80,000psm to 90,000psm. Urban land prices and strong demand are key factors propelling numbers.

What is clear in the FazWaz data are two things. First is that unlike in many comparable resort real-estate markets, developers have been unable to maximise premium pricing levels in relation to properties near the ocean. Sea views seem to still carry greater weighting for demand with both developers and owners.

Second is that inland properties are rapidly pushing up in value as a result of key commercial, retail and transportation infrastructure. In a nutshell, moving into the next decade Phuket’s property story is not just about the beach.

While the broad trends are very telling, from our analysis of the data on how individuals projects rank in terms of engineering the highest levels of cost, the reality is that developers who have a positive reputation and experience rank high. Other key factors that push up pricing are properties offering investment units with guaranteed returns and those with strong design elements or distinctive qualities.

– Bill Barnett


Bill Barnett is Managing Director of leading Phuket-based hopsitaltiy and real-estate consultancy C9 Hotelworks and a key writer for the FazWaz Property Insider. Visit C9Hotelworks.com and FazWaz.com

 

 

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rico | 24 March 2017 - 11:12:57

Hello  iam  a new member . to clarify the landownership.

foreign investment in thairealestate  is restricted under the alien business act 1999  however the land code 1954 allows foreigners under certain rules and conditions set out under the department of land regulations to have a proprietary right in immovable property.

thus , a foreigner with limited exceptions CANNOT OWN LAND but can own a building on land .
many foreigners therefore choose to obtain long-term lease. depending on a quote based on total area size . foreigner can own a condominium outright (for example through freehold purchase)because the underlying land is ownedby a thai legal entity...

i hope this helps 

zwerf , i think you should be very sweet to your lawyer wife, lol

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Rorii | 30 January 2017 - 06:49:31

Jor12, I suggest a "fool" would the one who refuses to acknowledge facts, but prefers to live in his own isolated world.
The truth is out there, you should seek it.

I don't  think malczx7r was actually quoting me as  saying Thailand is 70-80 years behind, but that is the way you chose to read it, perhaps a "period" after right, would have made it more clear for you

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malczx7r | 29 January 2017 - 21:33:36

Jort12, sorry I should have used a full stop instead of a comma. 

I was referring that Rorii is right.  Then I was stating that here they are 70-80 years behind in as far as H&S goes.

Yes you are right, they do have a different agenda but they jump to do things after the event, not being proactive, they are concerned about H& S otherwise they wouldn't go out and now be checking the trees for danger, but they don't have routines in place for checking things such as road worthiness of bus's which are constantly crashing.  The sort of things in the country I came from was realised long ago that these things need to be addressed, all of these things are brought up whenever there is an "incident" but then fails to get implemented.  

But as some one mentioned on another thread, this is their country they can run it how they like, if we don't like it then we should go elsewhere!

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Jor12 | 29 January 2017 - 18:10:05

malczx7r...don't recall Rorii saying "Thailand is 70 - 80 years behind most of the world." Behind in what exactly? Thais, being a proud Buddhist nation, have different agendas and attitudes to the west and general worldview. A good example is the excess to which you refer namely the excess of H & S.

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Jor12 | 28 January 2017 - 17:37:36

rorii...nah...can't be bothered with fools. Contribute something meaningful.

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malczx7r | 28 January 2017 - 17:07:54

Rori,  you are wasting your time with some of the people on here, you are right, Thailand is 70 - 80 years behind most of the world, H&S hasn't got here yet, though to be fair in the UK we have taken it way too far, though i blame the American compensation culture for that.

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Rorii | 28 January 2017 - 13:28:25

Jor12, honestly "mate" you have lost the plot completely. Did you even read the link I gave to swerv?

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Jor12 | 28 January 2017 - 00:46:07

Rorii...never heard of tree checks. Next you be wanting a department for shark teeth checks, or wildlife stability checks. And you want the government to listen to you?

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Rorii | 26 January 2017 - 12:01:33

swerv, wow, you noticed, you are smarter than I thought, however, the situation is the same, you questioned kurt on "tree branch checks?" as I am pointing out, yes, there is such a thing, but alas, once again you missed the point, you are far to quick to ridicule. It appears, in many instances, Phuket/Thailand, is not interested in the safety of its own citizens, or visitors. 

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swerv | 26 January 2017 - 11:07:12

Rorri: This is Thailand Not the UK.

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