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Rise of the condotel: Phuket’s Mai Khao Beach Condotel developers solve Hotel Act conundrum

PHUKET: A new condo development at Mai Khao, on Phuket’s northwest coast, is among the first to make a major breakthrough for potential owners wanting to rent out their properties for periods of 30 days or less since the recent crackdown on condo projects across the island under the Hotel Act.

constructionpropertylandThe Phuket News

Sunday 3 September 2017, 11:00AM


Mai Khao Beach Condotel, freehold and legally available for rent at daily rates

Mai Khao Beach Condotel, freehold and legally available for rent at daily rates

Mai Khao Beach Condotel has had its building permit as well as its essential Environmental Impact Assessment (EIA) both approved, giving the developer Mai Khao Beach Condotel Co Ltd, which is part of Thai Business Development (TBD) Company Group, the green light to go full steam ahead in delivering the units.

The condotel, located just 450 metres from Mai Khao Beach, is surrounded by five-star resorts and is only 10 minutes’ drive to the airport. But sales off-plan have been swift, with only about 160 units of the 320 units still available, confirmed TBD Company Group CEO Igor Protasov.

Other major drawcards are the 10% guaranteed rental return for five years program, and with unit prices from B1.999 to B6 million, the option of freehold ownership has had incredible appeal,” Mr Protasov told The Phuket News.

Further, the completed project will be “hotel managed”, he said.

“We are in negotiations with three different Western hotel chain companies to get a four- to five-star hotel brand of one of those companies to manage the Mai Khao Beach Condotel,” Mr Protasov added.

Yet the major attraction is that foreigners can own their units freehold and can rent them out at daily rates as the entire project has been designed to comply with the Hotel Act and the required building standards and the project will be managed by a hotel operator, explained Mr Protasov.

The move to ensure dual compliance was done to appeal to buyers in the market for their full confidence.

“The decision to ensure the project complies with both the Condominium Act and the Hotel Act was made before we launched into the design and planing of the project,” Mr Protasov explained.

The main factor was to create project that is interesting for buyers as an investment. Owners can legally rent out of their units on a daily basis allows to guaranty to the customers 10+% return on investment per year from rentals,” he pointed out.

“As well, because it is a commercial property, its value after construction is finished will be at least 25% higher compared with market prices of standard residential condominiums.”

Regarding the hotel operator to be brought in to manage the daily operations of the development, Mr Protasov noted that TBD Company Group already has experience with hotel operations.

We have been operating the Palm Oasis Boutique Hotel, which is a part of TBD Company Group, over the past five years,” he said.

 

 

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Andy | 03 September 2017 - 14:34:23

Post construction value 25% above market and 10% return guaranteed for five years. If something sounds too good to be true it probably is.

The worldwide property bubble will end like all bubbles in "pop" and a lot of tears.

Discover Thainess | 03 September 2017 - 12:02:18

Is that an advert or an article? How is this different from every other "condotel" that's been built over the last few years ?

 

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