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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.

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...

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.

Rorii | 25 January 2017 - 17:12:06

swerv,first, I think you posted in the wrong story, secondly, have you heard about arboriculturists, also go read this
http://www.hse.gov.uk/foi/internalops/sims/ag_food/010705.htm

Don't cry, but do wipe the egg from your face.

Kurt | 25 January 2017 - 14:58:22

Swerv, tell that the thai lady with her head wound, or the family of man who did die.
Yes, tree branch check in Parks all over the world is a normal happening.

I am sure when your children get hit by falling branches like the lady on the photo you will cry.

swerv | 25 January 2017 - 14:06:24

Kurt: Jeez man...tree branch checks????
Is this a special department, do they have specialist tools?
Don't know whether to laugh or cry.

Jor12 | 24 January 2017 - 17:55:03

Sir Burr..."If" used by you is an implied state of affairs or conditional on an event. The use of the word "assuming" in my reply addresses your implied term. So, this contradicts your further assumption of my "reading comprehension." 

Andy...feel free to correct any of my errors, which to date you have failed to address. I don't drink nor do I go to pubs. Unle...

Jasmin01 | 24 January 2017 - 17:01:46

Condos and villas here should not be marketed as an investment. They should be marketed as liabilities. Just take a look at many of the condo and villa projects here that are 10 years or more old. Often run down and the management companies will milk the projects for everything they can until many owners simply stop paying their CAM fees

swerv | 24 January 2017 - 13:20:26

Andy: What hole? Just giving the facts.

Andy | 23 January 2017 - 19:42:43

Joe12
An intelligent affable person would not call other posters "idiots" for expressing an opinion or politely correcting your errors. This Is why most posters here hold you in contempt.
Unfortunately we who read and post here have to put up with you, at work or in a pub or similar environment you would be known as the pub bore and shunned.

Andy | 23 January 2017 - 19:33:08

swerve: When in a hole, stop digging.
With each further comment you make yourself look more and more inept and your previous comments more and more disingenuous.

Pauly44 | 23 January 2017 - 12:19:32

Joe 12; I consider being called clueless by you a compliment! 

Timothy | 23 January 2017 - 09:28:26

Joe 12....most of your comments are derogatory! You are clueless and your comments are absolute rubbish. I say that is a friendly manner....just like you.

Sir Burr | 23 January 2017 - 09:06:01

Joe12,
Reading comprehension isn't your strong point, is it?
Did you see that little word IF?

Joe12 | 22 January 2017 - 17:05:21

Sir Burr...there you go again assuming the affairs of someone/anyone without any regard to facts - which you don't have. Clueless.

Pauly44...absolute rubbish. Clueless 

Andy ... absolute rubbish...clueless. How can pointing out errors in peoples' comments be classed as derogatory? I'm amazed at how some people have managed to come through life this far.  

Christy...absolute ru...

Joe12 | 21 January 2017 - 19:35:25

Paully44...I don't [care] whether my comments do me any favours. What I'm telling you is that what you people are saying is just unmitigated waffle and clueless. It can't be derogatory just fact. It amazes me how some manage to get this far in life.

swerv | 21 January 2017 - 14:53:09

Sir Burr: My wife has more money than me.

Pauly44 | 21 January 2017 - 14:30:33

Ok swerv I can see you will never concede you do not own the land you say your company does even though all your statements confirm you're technically breaking the law, might be time to change usernames as unwanted guests could come knocking.

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