Connect with us


The billion dollar behemoth stirs



PHUKET: For the most part, the booming tourist high season at the start of 2016 was a challenge for the island’s luxury real estate sector, as there was no domino effect. Instead, the villa market went stone cold.

As we edge towards yet another winter peak high season though, the question for the property market is, “what does the future hold?”

We have just released the new ‘C9 Hotelworks Phuket Luxury Villa Market Update’ and based on our analysis, the prevailing market has seen a sharp rise of secondary sales against primary market transactions.

At the same time, Bangkok and other Asian central business district offerings are now seeing a surge in overseas buyers at the top end of the market.

Take note of the hotel branded residences on the river such as the Four Seasons and Mandarin Oriental offerings – competition is heating up.

You can also factor in the global economic slowdown and volatile currency.

Yet if we turn back the clock and look at Asia’s real estate post-global financial crisis, the ultra-luxury segment was one of the first markets to pick up and sustain traction during that time.
Behind the push in Phuket’s secondary sales is the reality that many of these villas are prime properties, so the choice is limited, and there are high entry barriers.

That means some early buyers are exiting as a normal trend in the recurring market cycle, not because of over-supply.

Getting inside the numbers, I find comfort in knowing that the existing real estate market in luxury properties has a total value that is well in excess of US$1 billion.

The island’s top-end market segment remains the best performer in the region.

Drive around Phuket and you can do the math if you start adding up the existing values on Kamala’s Millionaires Mile, Nai Thon, Bang Tao, Surin, Cape Yamu or Cape Panwa.

Looking forward to the end of 2016 and into 2017, the pick-up of sales at Bill Heinecke’s ‘The Residences by Anantara’ in Layan, signals the start of a new cycle.

There is strong interest at The Estates at MontAzure for its large land plots and signature design by celebrity designers Lek Bunnag and Jaya Ibrahim bodes well.

In the wings is the banner Rosewood resort. Its multimillion-dollar villas currently under development will usher in estate villas into the marketplace.

And it’s no accident that Hong Kong’s New World Development chose Phuket to locate their luxury brand’s Asian flagship.

Again and again, we see the cyclical nature of the island’s property market. While our new report spells out current trading challenges, our forecast is that we are about to enter a new cycle that will likely see a renewed interest in the impressive new top-grade products in the island’s luxury segment.

— Bill Barnett


Get more from The Thaiger

Join the conversation and have your say on Thailand news published on The Thaiger.

Thaiger Talk is our new Thaiger Community where you can join the discussion on everything happening in Thailand right now.

Please note that articles are not posted to the forum instantly and can take up to 20 min before being visible. Click for more information and the Thaiger Talk Guidelines.

Archiving articles from the Phuket Gazette circa 1998 - 2017. View the Phuket Gazette online archive and Digital Gazette PDF Prints.

Follow Thaiger by email:

Thailand3 mins ago

Current Thailand Visa Options for Digital Nomads

Central Thailand10 mins ago

Police find fake Covid-19 tests worth millions in central Thailand

World1 hour ago

UPDATE: Rushdie is talking again, attacker pleads not guilty

Crime4 hours ago

Thief caught after showing off on TikTok the money he “earned”

Road deaths15 hours ago

Singaporean car driver dead, 7 injured in Phuket crash with bus

Thailand16 hours ago

FDA says Thailand unaffected by contaminated Haagen-Dazs

Join the conversation on the Thaiger Talk forums today!
Crime17 hours ago

Foreign parrotfisher in Krabi says he’s sorry

Chon Buri18 hours ago

17 year old the 18th victim of Mountain B fire, 27 still in hospital

Economy18 hours ago

After poor South Koreans die in flooded basement home, will there be change?

Thailand19 hours ago

10 Unique Superstitions of Thai People

Weather20 hours ago

Tropical storm ‘Mulan’ makes a splash in the north of Thailand

Patong21 hours ago

Fire breaks out at Patong bar

Politics23 hours ago

Exiled Sri Lanka President warned to stay in his hotel in Bangkok

World23 hours ago

UPDATE: Salman Rushdie on ventilator, details on stabber emerge

Thailand24 hours ago

Campaign to get international training for Thai teen declared record sprinter

Thailand11 months ago

Morning Top Stories Thailand | Police to end protests, Human Trafficking | September 14

Thailand1 year ago

Thailand News Today | Thai Airways in rehab, All go for Songkran | March 4

Tourism1 year ago

Phuket’s nightlife. Yes, bars and clubs are still open | VIDEO

Phuket1 year ago

Thailand News Today | Covid passport talks, Thai Airways heads to court | March 2

Tourism1 year ago

Phuket Thai food treats you need to try | VIDEO

Thailand1 year ago

Thailand News Today | Bars, pubs and restaurants ‘sort of’ back to normal | Feb 23

Tourism1 year ago

In search of Cat & Dog Cafés in Phuket Town | VIDEO

Thailand2 years ago

Thailand News Today | Gambling crackdown, Seafood market to reopen, Vlogger challenge | Jan 21

Thailand2 years ago

Thailand News Today | Covid testing for visas, Business impact, Vaccine approval | January 19

Thailand2 years ago

Thailand News Today | Weekend Bangkok bombs, Thailand fires, Covid update | January 18

Thailand2 years ago

Thailand News Today | Stray car on runway, Indonesian quake, 300 baht tourist fee | January 15

Thailand2 years ago

Thailand News Today | Governor off respirator, sex-trafficking arrest, condo prices falling | January 14

Thailand2 years ago

Thailand News Today | Chinese vaccine, Thailand ‘drug hub’, Covid update | January 13

Thailand2 years ago

Thailand News Today | Bangkok may ease restrictions, Phuket bar curfew, Vaccine roll out | January 12

Thailand2 years ago

Thailand News Today | Covid latest, Cockfights closed down, Bryde’s Whale beached | January 11