A surge in tourist figures is fuelling demand for condos in
Thailand, according to agents.
On 28 December Thailand welcomed its 21 millionth
international tourist for 2012 with final figures expected to nudge 22 million
for the year - 15 per cent up on 2011 and 24 per cent higher in terms of
income.
The Tourism Authority of Thailand now targets 24.5 million
for 2013 which will place great demand on residential condos.
Top source countries are China followed by Malaysia, Japan,
Russia, South Korea, India, Laos, Australia, the UK and Singapore, with Phuket
the favourite island destination in South East Asia. Phuket Airport amassed a record 9.5 million
arrivals and departures in 2012, up 13% on the previous year, outstripping
Pattaya, Koh Samui and Chang Mai. Hotels
are running at a minimum 75% occupancy and the Airport is currently being
expanded to cope.
The emphasis is now on wealth rather than the mass market
with a whole new source of property buyers keen on condo-style resorts in
particular - something that the Kingdom lacks.
Indeed, reports suggest that the condo market in Phuket has
grown by 20% in the past two years. The
Russians and Chinese lead the way with 30% of buyers on the Island coming from
Russia alone with Indians hot on their heels.
Resorts with sea views are the most popular yet the hardest plots to
come by. Leading European development
company Beach Projects has recently relocated its HQ to Thailand and taken a
keen interest in this trend.
Roy Hanif, Partner in Beach Projects, explains, "Tourists
quickly convert to property investors as they fall in love with the year-round
30 degree sunshine and legendary scenery.
Also living costs are a third of those in Europe and HSBC ranks Thailand
number two in its Expat Explorer Survey, especially praising its quality of
life. There is a new wave of demand from
overseas, and Phuket's local middle class population, for luxurious, spacious
condo resorts with establishments such as the Banyan Tree booking out way in
advance, so we're buildingSilver Beachin Phuket to go some way to satisfying
this."
Roy continues, "Whilst capital appreciation is currently
minimal on land and villas, according to the Bank of Thailand condos have
increased on average in value by 10% over the past five years, so the
investment potential is massive. Clients
can realise that 10% anticipated return if they buy off-plan and sell on
completion or take advantage of rental income of between 8% and 12% net per
annum thanks to a 250 day high season.
Affordable to professionals with starting prices of just £117,000,
Silver Beach is selling well so we're starting to build and expect to be
finished by summer 2014."
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