Is Phuket the perfect pandemic getaway? Thailand’s luxury real estate market was once a sound investment – now rich buyers from Hong Kong, Singapore and China are seeking remote WFH-ready second homes
With easy visas, first class hospitals and international schools nearby, developments such as Natai in Phang-nga, MontAzure in Kamala Beach and Radisson Phuket Mai Khao Beach look increasingly inspiring to affluent East Asian families and retirees looking for an escape from city life – and Covid-19
Buyers from Singapore and Hong Kong are helping to prop up the ailing condo market in Thailand’s resort destinations, although sales remain scarce.
This once vibrant sector had been softening even before Covid-19 delivered a heavy blow, a trend attributed last year to a strong Thai baht and Sino-US trade tensions. However, agents are banking on a Chinese-led rebound once tourism recovers.
In its latest report on the Phuket market, CBRE found that the total number of units sold in the first half of 2020 shrank by 71.2 per cent year on year. The majority (90 per cent) of those that sold were investment-oriented products, most of which offered rental guarantees.
Conversely, sales of villas rose by 19.2 per cent year on year, although these were mostly to local buyers, and none were in the luxury category. Prakaipeth Meechosarn, head of advisory and transaction services in resort property sales, CBRE Thailand, said that as a rental market heavily reliant on tourism, buyers are waiting for a post-Covid-19 recovery.
“When the market returns to pre-pandemic levels, they could rent out their villas. In the meantime, some owners have been occupying and enjoying their properties themselves,” she said. “Nonetheless, we continue to see strong interest (in condominiums) from buyers in locales such as Hong Kong and Singapore, as well as some Europeans who are based in Asian countries.
“We’ve had a limited number of sales from Chinese buyers; however, this target group could significantly contribute to the rebound of the Phuket condominium market once the tourism market recovers.”
With Phuket having limited beachfront opportunities, Meechosarn cites Natai in Phang-nga as an area with potential. One project attracting strong interest is Veyla Natai Residences, Natai Beach, a collection of 15 highly designed units with freehold title deeds on a 110-metre stretch of white sand beach, only 30 minutes from Phuket International Airport. Prices range from 67,000,000 Thai baht (US$2.2 million) to around 98,000,000 baht (US$3.3 million).
In a normal year, Tim Skevington, managing director at Richmont’s, the Bangkok affiliate of Christie’s International Real Estate, could expect healthy results from Thai property road shows held in Hong Kong. “On occasion, we sold more than a hundred units on a weekend,” he said.
