Phuket – The 'Pearl of the Andaman' is Thailand’s Prime Property Market

Located in the balmy waters of the Andaman Sea off southern Thailand, Phuket is Thailand’s largest island. As Phuket continues to offer good value and remains easily accessible and safe, its reputation as one of the world’s top resort destinations continues to grow, attracting both the ‘jet-setter’ and the budget traveller.  In 2007, nearly 5.5 million visitors were lured to Phuket’s idyllic beaches, world-renowned dive spots, first-class hotels and spas, magnificent golf courses and marinas.

 

Patong Beach, on the central western coast, is Phuket’s most popular tourist destination and the place where most of the island’s shopping and nightlife may be found. Other popular beaches south of Patong include Karon, Kata, and Kata Noi, while at  the southern tip of the island there are Nai Harn and Rawai. To the north of Patong lie the popular Kamala, Surin and Bang Tao beaches.

Why is Phuket drawing so many property investors and second home buyers?

As inflationary pressures force central banks to raise interest rates, many foreign property markets are feeling the credit crunch as home prices fall by as much as 18.07%. Property prices in Phuket, however, have risen more than 20% with purchasers looking to buy property in Phuket as a second home or to diversify their foreign property portfolios. The primary advantages of buying a property in Phuket include:

• Higher gross yields due to the strong demand for rental properties
• More properties offering sustainable capital appreciation
• Stable growth due to the local upswing and a strong economy

The Phuket property market continues to boom: 56% of the investment property sold in Phuket in 2007 was purchased by overseas investors who understand that Phuket’s idyllic beaches, amazing diving, world-class spas, pro golf courses and marinas will continue to attract return visitors year after year. Like these savvy investors, you too can profit by investing in a piece of paradise.

Why is NOW the time to buy property in Phuket?

Those in the know are buying Phuket property because they have been watching the diversification of locations that are being developed and observing that the prime sea-front sites on the west coast are quickly being snapped up.  The southern and eastern coasts now boast several high-end projects that are steadily increasing in price as the scarcity of these magnificent tropical plots pushes land prices up 10% year-on-year.

Which area of Phuket will enhance my lifestyle or property portfolio?

Most people looking to buy property in Phuket seek projects with ocean views. Because the coastline is not limitless, combined with the building restrictions currently in place, these properties are naturally commanding higher prices. The good news is that projects with good design, planning and management are selling in an increasingly wider area around the island, including:

• The West Coast: extending from Nai Thon Beach down to Kata Noi Beach, this is the most built-up area on the island, contributing 59% of the property for sale in Phuket, 26% of which is comprised of high-end villas.  It is also the area with the best rental potential as most tourists and buyers are still focusing on this part of Phuket.
• The East Coast: offering dramatic sea views over Phang Nga Bay, this area is starting to see some rapid development due to its relatively inexpensive land prices. It is now contributing 41% of the villa properties in Phuket, with some current projects offering excellent value for money and prospects for capital gains.
• The South: slower to develop due to its distance from Phuket International Airport and the golf courses, nevertheless areas like Cape Panwa and Rawai Beach are becoming increasingly popular and several five-star hotels are springing up here.

Properties in Phuket vary from lavish mansions set on private gated grounds and exclusive luxury villa developments to value-for-money condominiums that offer convenience and access to the island’s numerous facilities and attractions. Many developers are engaging international property management firms, and those owners who have chosen to let their property are seeing a significant rental yield of between 6% and 12%.

The Phuket property market has strong foundations, but will it continue to grow?

More than 2,000 foreigners have already purchased a property in Phuket, and practically all of these foreign investors have seen a capital appreciation of between 15% and 20% per annum over the last four years. Phuket property prices are projected to continue to grow along with the island’s tourism industry, which is set to double when Phuket International Airport’s five-billion-baht (£79m) expansion is completed in 2010, increasing its capacity to handle passenger numbers that are forecast to increase more than 100%.

 

The demand for private rentals is set to rise as well, promising continued high occupancy and high returns for overseas landlords who decide to reap the rewards of renting out their Phuket property.

Who is buying property in Phuket and already beating the credit crunch?

Phuket may be one of the most expensive property markets in Thailand but it is well established and it has been drawing expatriates from Europe, Japan, Australia, China, Korea and the US for the past 10 years. Those who’ve already bought property in Phuket are enjoying a life of leisure that in most cases would be beyond their means in their home countries, with amenities and services that include:

• Full-time maids, cooks, drivers and gardeners for as little as Bt7,000 (£100) a month
• International schools and an extensive support network of expatriate clubs and societies
• English-speaking lawyers, estate agents, building support services, and audio-visual and IT providers

If you’re looking for a holiday home or foreign investment that will help you beat the current credit crunch, you need look no further than the palm-fringed white-sand beaches, pro golf courses, world-class spas, exotic art and culture, and safety and security that are Phuket. Come and experience the luxurious tropical lifestyle at a fraction of the cost of other destinations that offer far less.