Phuket market still relatively stagnant
Phuket market still relatively stagnant
But as always optimism abound on the island
Phuket’s residential market experienced increased villa sales in Q2 2016, with five properties at the higher-end sold compared with just one in Q2 2015, according to CBRE’s Phuket Residential MarketView Q2 2016.
Smaller and cheaper units are where primary interest lies, with a focus on income. There were however no new launches in 2016.
“Overall the Phuket market is still very slow and the biggest change this year has been that purchasers are looking for income producing properties,” said James Pitchon, Executive Director at CBRE. “There’s a split market right now, there have been a couple of sales at the super-luxury end, but the majority are at the much lower end. There is a definite focus on income purchases and overall the volume of sales is very low.”
More: Beachfront condo on Phuket set to make waves at overseas launch
Still, many remain positive about the long-term future of Thailand’s most coveted tourist and lifestyle destination.
“Phuket is probably one of the best brands for resorts in Asia, and it’s a very mature market here, so we’ve always been attracted to this market,” Richard Yue, CEO of renowned boutique investment firm Arch Capital Hong Kong and the lead corporate investor in MontAzure, a luxury mixed-use resort development on Phuket’s Kamala beach, said.
“When someone takes their family to a beach resort, they would often just envision water, sun, beach, good food and a nice environment, but I think Phuket has a lot more to offer than just that,” he added.
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Branding and consumer trust are major themes in the development of MontAzure, according to Yue.
“A lot of what we are doing are going to be homes that people are going to live in,” he said. “People want to buy into credibility and track record, so for example the Intercontinental hotel will be anchoring our development. The beach club that will be coming, which we can only announce later this year, is also coming from a very strong brand, while Twin Palms will be managing our condominiums on the beach, they have a long history here in Phuket.
“By building a collection of credible brands, in a way that makes our development even stronger and more credible.”
Read next: Crackdown on Airbnb style holiday rentals in Phuket
Source: Property Report