FIFA WORLD CUP 2018 Kata Rocks
Login | Create Account Poll Currency Weather Facebook Youtube Search

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.

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

 

 

Comment on this story

* Please login to comment. If you do not have an account please register below by simply entering a username, password and email address. You can still leave your comment below at the same time.

Comments Here:
Comments Left:
# Characters
Username:
Password:
E-mail:
Security:

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...

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

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 t...

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.

Jor12 | 28 January 2017 - 17:37:36

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

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.

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?

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?

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. 

swerv | 26 January 2017 - 11:07:12

Rorri: This is Thailand Not the UK.

Have a news tip-off? Click here

 

Phuket community
GrabTaxi hikes ‘booking fee’ surcharge

Meter taxis in phuket?? What a joke, they don’t exist, the drivers NEVER turn them on and just hav...(Read More)


Phuket Opinion: It’s what they call karma

That's why I call it Lie-Land. Honesty is simply not considered when lying is so much easier. ...(Read More)


Phuket Opinion: It’s what they call karma

Glad to see another PN article pulling the covers off dishonest Thai officials. In their efforts to...(Read More)


Phuket Opinion: It’s what they call karma

Karma is for those who actually have a conscience, Thai officials have repeatedly demonstrated they ...(Read More)


Ugandan females arrested on Bangla Rd for Phuket overstays

2 day crack down in reaction to local Thai reporter doing 4am Facebook live report from Bangla showi...(Read More)


Phuket hotels deny worker crackdown brings pressure

"Thai staff may not be as competent"... bulls-eye!...(Read More)


Phuket croc search moves to Kata Noi, beach closed to swimmers

Hehehe, where in the world are vice admirals, Mayors and Governor going to a beach for a croc? Where...(Read More)


Ugandan females arrested on Bangla Rd for Phuket overstays

Of course they stay longer, RTP hardly ever do their job, most people can see these people working i...(Read More)


Foreign media’s Wild Boar interviews come under fire

It's interesting to see a "psychologist" touting the same societal hang-ups we see her...(Read More)


Live grenade found dumped in roadside rubbish

Anyone surprised? On Phuket, 'We' dump everything at road side. The big question is, how is...(Read More)