The Sunday Business Post
After a tsunami and a military coup, how is the Thai property market faring? Cathy Hawker reports from Phuket. Thailand, one of the newer destinations to catch the eye of Irish property seekers, has historically offered a low entry point for house prices. Now new developments in exclusive settings with high-quality build and modern design are pushing those prices up as buyers realize the benefits of buying into the country seen as the gateway to Southeast Asia.
While many economic experts predict that this region will see rapid development over the next 25 years, Thailand has had a lot to cope with recently. The devastating tsunami of December 2004 caused visitor numbers to tumble and just when tourists were returning to pre-2004 levels, the country experienced a military coup. The Thais are a peaceful people, 95 per cent are Buddhists and this coup seems to have the taciturn support of most citizens.
Local agents are cautiously confident about the future, some even claiming that the coup was an opportunity for sharp investors to act on the weakened Thai currency.
“We envisage that property values will hold in the immediate future,” says Michael Doig of Colliers CRE. “We’ve already seen immediate action in the market as investors have contacted us intending to take advantage of the recent devaluation of the Thai baht.”
Foreigners cannot own land in Thailand, so all property is sold leasehold or through partnership with Thai nationals. At present, leases last for 30 years with the automatic right to two extensions giving buyers a 90-year lease. The charms of Thailand are clear to the 3.8 million annual visitors: a natural paradise of green hills with clear seas and over a thousand small islands, it offers a low cost of living, charming, gentle people and fantastic food and culture.
Once little more than a backpacker’s stop on around-the-world trips, Thailand has gone upmarket with five-star hotels and spas lining the beaches. Property buyers too, are looking for more luxury and style. Aylesford International reports that the property market in Phuket, Thailand’s largest island, has seen a sudden rise in high-end developments with over 130 multi-million dollar properties for sale.
Hotel resorts like the Amanpuri, Trisara and The Banyan Tree, where villa prices go as high as $5.2 million, have sold well. The work of designers like Philippe Starck is appearing on the island — a good sign surely for Phuket’s future with the design-savvy overseas investor.
The reasons for Phuket’s popularity are simple. The infrastructure is excellent with good roads, an international airport, good schools and hospitals and modern telecoms. Wealthy buyers from Asia and Australia are relocating their families here, often weekly commuting to Hong Kong or Singapore.
Barama Bay is an 80-acre private island one kilometre off the coast of Phuket in southwest Thailand that is designed for buyers in search of privacy and exclusivity.
Currently covered in banyan trees and mangroves, developer TGR plans to build 31 spacious villas and a 79 villa-hotel. The Dubai-based operator Jumeirah is already signed up to run the hotel and spa, based around the 400-metre sandy beach. A natural harbour on the east of the island will become a 73-berth deepwater marina capable of mooring superyachts.
Boating is being heavily promoted in this region, not least by King Bhumibol, Thailand’s much-revered monarch and an award-winning sailor in his younger days. The stunning Phang Nga Bay has hundreds of small islands, some lush and green like Barama Bay and some towing limestone karsts such as James Bond Island, location for Scaramanga’s lair in The Man with the Golden Gun — all perfect to cruise or kayak around in search of an empty sandy beach.
The last government lifted all taxes on boat purchases, and fuel and crew are much cheaper here than in Europe. “Phuket is an ideal boating hub for Phang Nga Bay,” says Panu Maswongsa, tourism manager for Phuket.
“Several marinas are being built here, new tsunami early warning measures on the sea are being introduced and this year we host international events in dinghy racing and power boats.” Prices at Barama Bay will start from $3 million (€2.34 million) for a villa on a plot of one to five acres. Owners can choose from several villa designs for properties up to 2,500 square metres.
Prices include a mooring with a prepaid ten-year lease, a golf cart as the island is car-free and family membership of the smart Blue Canyon Golf Club in Phuket where Tiger Woods hold the amateur course record.
“Who hasn’t dreamed about living on a private island?” asks Anthony Franklin of TGR Group, Barama Bay’s developers. “This is about acquiring a certain lifestyle. Barama Bay will provide an exclusive, secure retreat yet only 20 minutes from an international airport with an excellent, international-level infrastructure.”
With 50 per cent of the scheme sold, it does appear to be what many well-heeled buyers want. Those looking for luxury but with a more modest budget should consider AKA Guti Kiri on the mainland, two-and-a-half hours south of Bangkok in Hua Hin. Already home to several top-end hotels and spas including a sister hotel called AKA Hua Hin, the region is another established area of Thailand for foreigners looking for property.
AKA Guti Kiri will be a hotel with 95 two bedroom villas with pools which are all for sale with prices from $235,000 (€183,600) to £325,000 (€254,000) including furniture. Developers Kinji are offering a rental guarantee of 6 per cent annually for two years with personal use of 30 days a year.
AKA Guti Kiri is a mountain retreat with a monastic, Buddhist theme and Balinese-inspired interior design. The central thatched building and spa provide distant views of the mountains of Burma while nearby there are six golf courses within 20 minutes. “Typical buyers here are aged 30 to 55, looking for luxury and peace with a full maintenance programme as part of the resort,” says James Ngai of Kinji.
“Hua Hin is well located. The Orient Express passes through from Bangkok to Singapore and the king has his official residence here.” Buyers, understandably watchful of the Thai market at present, have plenty of luxury options to consider.
