Phuket’s Sleeping Giant: Shared ownership of property
PHUKET: Shared ownership sales of Phuket properties reached US$ 61.2 million for 2008, validating the sector’s stability despite the economic downturn, according to a comprehensive research study into the industry.
The ‘Phuket Shared Ownership Market Report’, compiled by leading Phuket-based hospitality consulting firm C9 Hotelworks, is seen as a natural development in Phuket’s tourism industry, which is well on its way to recovery in the third quarter of 2009.
Noted industry analyst Bill Barnett, managing director of C9, suggests that, “With a total customer base of 22,498, the developing [shared ownership] industry, while still in its early years, is the sleeping giant of the island’s hotel and property market.”
“The emergence of fractional ownership of properties and yachts is becoming a notable component of the real estate landscape on the island,” he says.
Laguna Phuket Managing Director Michael Ayling agrees, saying that his company’s Laguna Holiday Club vacation ownership unit has gone from strength to strength over the past five years despite volatility in the tourism and real estate sectors.
According to the C9 report released today, the total current market size of shared ownership in Phuket is 554 accommodation units, with vacation ownership holding 87% of the market share in the first half of 2009 and fractional sales accounting for the balance.
Research data also indicates an emerging base of fractionally owned yachts in Phuket, with US$ 2.8 million in sales having been recorded since the launch of this type of ownership scheme only two years ago.
“The 2009 trend marks a continued shift, with 68% of volume from point-based systems versus week-based programs in the core segment. Brand pricing by international affiliates is also on the rise, reaching a 62% premium over ‘non-branded’ product,” Mr Barnett said.
— Gazette Reporters
