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Top-end property in Phuket shows signs of movement

May 20, 2011

High-end property in Phuket has been showing some signs of movement in recent months, according to the latest report from Phuket-based property consultancy C9 Hotelworks.

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In his May report Bill Barnett, managing director of C9, said: “As the world crawls out of the dark shadows of the global economic crisis … market demand growth was demonstrated by 16 sales in 2010 … 35 per cent of the transactions were recorded in the price strata of B100 million to B200 million.

“Topping the list was a single villa traded at B768 million.”

He warned, however, that “the primary segment outlook remains shrouded given a surge in resale listings of premium properties and a shortage of new developments.

“Secondary sales are anticipated to remain in the driver’s seat during the year ahead.”

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According to charts included in the report, the Russians are leading the spending, forking out B1 billion for three villas – about a third of all villa spending on Phuket.

However, included in the Russian figure is the purchase of famed Beyond Villa at Natai Beach in Phang Nga for around US$25 million (the B768 million villa referred to in Mr Barnett’s remarks). This property is unique for its size and astronomical price.

Three purchases were made by Hong Kong buyers totalling a more modest B400 million.

Two buyers apiece came from Europe, India, Singapore and Thailand, and one each from Australia and China.

Mr Barnett makes four predictions:

Market conditions favouring buyers will push a short-term trend toward secondary sales;

Increasing opportunities in Europe and North America could divert investment away from Phuket;

The strong Thai baht will contribute to buyers looking elsewhere or sitting on the sidelines;

yoo Phuket

A gradual rise in new luxury projects planned over the coming year could raise the island’s international profile.

Mr Barnett counts 65 high-end villas unsold on the island: 44 on the west coast, six on the east coast, 11 in the south and four in the north and Phang Nga.

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