Thail property sees upturn in Phuket serviced apartments

Phuket’s serviced apartments are proving one of the most attractive investments in the island’s real estate

Given Thailand’s legendary welcome, it is no surprise so many visitors stick around. On top of the warm service culture, expats can enjoy a rare combination of first-world amenities with an extremely affordable cost of living.
 

Thailand currently has the fourth lowest Consumer Price Index among the 64 countries in the Numbeo cost of living index – yet the country’s services are so sophisticated that each year more than a million tourists travel from developed nations for Thai healthcare services.

Real estate in Thailand has also developed to meet the foreign demand. Attractive design and high-quality construction can now be found in Bangkok and in a wide choice of resort destinations, each with its distinctive character and lifestyle opportunities.

Upscale families, for instance, are likely to gravitate to the tranquil royal resort of Hua Hin. Chiang Mai has mountains. Pattaya offers nightlife. Pretty much everywhere has great golfing.

Phuket, though, has a unique place in Thailand’s real estate as combining almost every appeal – unspoilt beaches and mountains along with nightlife, golf and an intact cultural heritage.

In addition, Phuket offers outstanding amenities including world-class healthcare, upscale malls and prestigious international schools.
The island’s appeal for long-staying overseas residents was recently endorsed by Fortune Magazine, which named the resort island as one of the world’s best place to retire.

Phuket’s tourism has also withstood the global downturn. Hotel occupancy is expected to hit 100% by spring. At the end of last year two more low-cost carriers began direct flights to the island, fuelling its hospitality industry’s development.

The wide spectrum of Phuket’s real estate caters for almost every budget and lifestyle, ranging from beachfront condos in Patong to millionaire hilltop villas overlooking Surin beach.

But the market’s most interesting trend is the emergence of serviced apartments suited to return visitors in search of tranquil environments suited to longer stays.

“Baan Yamu, a fully completed seafront luxury residence”

On Phuket’s pristine East Coast the innovative Baan Yamu Residences provides a good instance of how developers are tailoring projects to changing investment and lifestyle goals.

The low-density development features duplex condominiums, penthouses and villas on a stunning seafront setting overlooking the paradise island of Phang Nga Bay.

The architect Martin Palleros has integrated spacious modern living spaces with pools, covered terraces and extensive lush gardens. As part of the project’s low environmental footprint, 70% of the development is green space.

Several excellent golf courses, such as the world-famous Blue Lagoon, are among the nearby lifestyle attractions. A boat pier and a choice of marinas provide swift access to the marine playground of Phang Nga Bay.

Residents also gain from proximity to Phuket City and its excellent restaurants and shopping. World-class health care is on hand from Bangkok Hospital Phuket while the International School Phuket provides an outstanding international education.

A full range of services from Twinpalms – a well-known Phuket-based hotel management company – also opens up a revenue stream for residents who choose to lease out their units to holidaymakers.

‘Projects like Baan Yamu are geared to sophisticated buyers who appreciate its stunning surroundings but may also seek capital gains and a rental income,’ says Cyrille Hareux of Company Vauban real estate.

‘By participating in a guaranteed rental income scheme, buyers can expect to recover 70% of their investment within just five years.’
In 2010, real estate investors can still find a buyer’s market in Phuket, as economic turbulence dragged down last year's sales.
On the other hand, as new supply is now dwindling, property values are set to grow. Investors in properties like Baan Yamu also have the reassurance that the island has few remaining first-class seafront locations.

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