Thailand’s tourist arrivals in 2012, hit a record-breaking 21 million. For the year 2013, Thailand’s Tourism Authority sets the target at 24.5 million, and this is sure to create an increased demand for residential condominium units. The condominium market in Thailand particularly in Phuket have not stopped from rising as the demand is projected to increase in the coming months.
Indicators in Phuket are quite clear – hotels are running at a minimum 75% occupancy and the airport is undergoing expansion to cope with expected arrivals for this year. China topped the guest list, followed by Malaysia, Japan, Russia, South Korea, India, Laos, Australia, the UK and Singapore. Out of the 21 million visitors, 9.5 million went to Phuket, the country’s favorite island destination. Phuket has outperformed Pattaya, Koh Samui and even Chiang Mai.
Thai tourism went up by 15% in numbers and 24% in terms of income compared to 2011. And tourist leaders and authorities have a very high target for the year 2013. What this projection will translate directly into is an increased demand for tourist accommodations – hotels, villas, private beach resorts, VIP suites, etc. Thailand, and Phuket in particular has seen the emergence of a whole new source of property buyers keen on condo- style resorts, specifically.
Beach Projects, a leading European development company has seen this need and has relocated its headquarters to Thailand to actively participate and take advantage of the current trend and need. Beach Projects is currently building luxury investment grade beach properties in Phuket, in response to the projected influx of tourists in the coming months.
It is common knowledge in Thailand that majority of the tourists who set foot in the Kingdom easily convert to property investors, owing much to the country’s tropical climate, fantastic attractions and sceneries, and the low cost of living for quality of life. Beach Projects is capitalizing on their feel of the market, where a new wave of demand from overseas and Phuket’s local middle-class population for luxurious and spacious residential condominium units is indicated by advanced booking in establishments with Banyan Tree affiliation. Beach Projects is building Silver Beach in Phuket to cater to this need.
According to the Bank of Thailand, condos have seen an increase in value by 10% on average over the past five years. This indicates a massive investment potential. Property investors can appreciate a 10% anticipated return if they buy off-plan and sell on completion, or take 8% to 12% net income per annum from rentals. Beach Projects targets the young professionals making their condos affordable to this specific market. Their Phuket project Silver Beach is selling well and the project is expecting completion by summer of 2014, according to Roy Hanif, Beach Projects partner.
There are reports to suggest that the Phuket condo market has grown by 20% in the past two years. Leading the property investors are the Russians and Chinese. Russian investors make 30% of the buyers with Indians following in closely. Most preferred and popular property investments are resorts with sea views. Not all condominium projects are able to purchase land with that beachfront vantage. Select few like Silver Beach are lucky to have that edge.
With more tourists expected to arrive in Phuket and other parts of the country, Thailand’s Tourism Authority is gearing up with its lineup of activities, new tourism-based developments, while the property developers are getting ready with their projects to welcome this year’s batch of new tourist arrivals.
Big business opportunities await condominium buyers in Phuket with the projected increase in tourists visits. But before making any real estate investment, it is just right to know the legalities of owning one especially if you’re a foreign national wanting to have that kind of investment. Consulting real estate lawyers in Phuket should be taken first to ensure that you, as a foreign national can actually own a condominium unit in the island. There are trusted law firms around Phuket who can help you with all legal documentation requirements and adherence to Thai law.