As one of the top resort destinations in Southeast Asia, if not – without stretching things too far – the world, Phuket’s allure to both international tourists and property buyers just keeps getting stronger. The Islands unique and relatively pristine natural wherewithal, its well developed modern facilities, abundant hospitality and high living standard, have securely put it on the world map among the exclusive group of premium holiday destinations, coveted second home markets and, ultimately, dream retirement communities for Westerners and others around the world.
Phuket, Thailand’s largest island, possesses the kinds of desirable characteristics that property investors dream of: a warm tropical climate, plenty of beautiful sandy beaches and a relatively low cost of living, All those attributes make a tempting prospect for any astute investor. Resulting from its having been intensively developed into one of the worlds top tourist destinations over the last 20 years, Phuket also serves as the gateway to the Andaman Sea, one of the world’s most exceptional oceanic areas.
Adorned with scatterings of hundreds of islands in unmarred condition, plastered with white sandy beaches, hidden coves and spectacular coral reefs, this is as close as anyone can ever hope to get to living in paradise. The steadily growing marine industry is another catalyst that propels Phuket’s economy to a whole other level beyond competing resort towns, since it adds more competitive edge and opportunities for leisure and tourism.
As already mentioned, Phuket is on the international regatta circuit. What comes with that privilege is business opportunities like no other resort towns in the region. More marinas are either being developed or are in the construction phase, as demand for such properties has fast outgrown supply. Couple that with the fact that Phuket already possesses a thriving tourism industry and makes for a reassuring outlook for prospective investments.
With all those encouraging factors, it should come as no surprise to anyone that the luxury property market is already well developed in Phuket. Moreover the unique characteristics of Phuket property clientele are arguable unlike most of Thailand’s other marquee property offerings.
While other real estate markets around the country are specifically tailored to local property buyers and retirees from Western countries, Phuket is also an appealing draw for luxury lifestyle seekers, both wealthy property buyers and affluent retirees with higher purchasing power. Phuket’s comparatively much higher standard of living that is unavailable in many Asian countries in the region is the logic behind that.
Phuket properties unquestionably offer discriminating investors international standards, world-class design and magnificent views at prices well below their counterparts anywhere else in Asia, let alone Europe or the US. Prices for Phuket real estate remain highly appealing to international buyers even when developments are continuously growing. With real estate prices growing at a relatively sustainable rate, it is unlikely that the real estate boom and bust cycles of swiftly changing markets in Europe and the US will take hold in Phuket. We can reasonably expect to see the Phuket real estate market getting stronger.
By all accounts, Phuket has become Thailand’s most mature resort property market. It is also one of the few premium markets for resorts and retirement sector in Asia. Phuket tops the list for expatriates looking to migrate to Asia and who have a bank account to accommodate their aspirations. Phuket is now attracting even more international buyers from around the globe in search of stunning properties, excellent locations and inviolable privacy. Land and property prices continue to appreciate as prime target amidst increasing demand but remain well within reasonable bounds.
The rental market in Phuket is also benefiting from growing demand. Rental yields are improving as more vacationers make Phuket their preferred destination. What’s more, migrating populations not looking to actually own a foreign property ensure that economic trend continues. Phuket has been experiencing a construction boom for the past decade and the resulting benefit is that property buyers can enjoy wider selections of properties. Every property type you can imagine to suit any budget, ranging available on the market. From small one-bedroom apartments to multi-million dollar oceanfront estates, there is something for everyone.
As Phuket’s popularity keeps growing, especially among wealthy Westerners and smart investors, demand for mid-high end villas, condominiums and apartments, either to own or rent, increases. Quality properties, both existing new homes and condominiums, present sound investment opportunities. Villas, condominiums and apartments on the market are attracting buyers and investors equally. However, buyers looking to own are more inclined towards villas and condominiums on prime sites, especially among retirees and wealthy international buyers looking for a second home.
After a temporary recession in the market during the global economic crisis 2007 – 2008, we are seeing strong recovery in demand for both resort villas and condominiums in Phuket. This may be the resulting effect of the economic crisis that forced more European retirees to look further east for a more secure life in retirement. The market today is very different from the one that existed before the global financial crisis. In terms of location, the western side of the island commands a higher premium due to the more private and exceptional landscape. The top end villa and condominium sectors are still going strong and enjoying a constant flow of new demand. However, the new demand structure mandates that most market activity is in the low-end villa and condominium sectors.