Phuket, Samui: Making A Dream Come True

[george]

Making a dream come true

PROPERTY: Million-dollar-home market rising rapidly on Phuket and set to boom on Samui

PHUKET & SAMUI: Have you ever dreamed of having a pool villa with a superb seaview? It may probably be only a dream for Thais but a lot of foreigners are actively buying million-dollar homes in Phuket and Samui.

The high-end villa market in Phuket has been growing rapidly while Samui is gearing up for a boom cycle for this kind of development, according to major property developers on both islands.

In Phuket, it is forecast that around 50 premium villa projects both big and small will take place on the island. These luxury housing developments with price tags from six million to 50 million baht are sold ``off-plan'' and the majority of buyers are foreigners who are able to obtain lease terms up to 90 years.

Apisit Limlomwongse, managing director of Nexus Property Consultants, said the high-end villa sector was the hottest in Phuket, thanks to the island's world-class reputation.

Moreover, Phuket has sufficient infrastructure for foreigners such as an international airport, which accommodates direct flights from both Australia and Asia, medical facilities, international schools and hotels.

``For these reasons, Phuket is very attractive for tourists and those who want to own deluxe villas as a second home or for a place where they can live after their retirement. Some foreigners buy them for investments,'' he said.

On Samui, Orasa Dulyarat, sales and marketing director of Cabana Group, said the island has a limit of smaller space and less developed infrastructure when compared with Phuket. Moreover, people in Samui are more conservative.

``Most of the luxury villas in Samui are cheaper than in Phuket and many developers are trying to sell on a freehold basis to allow Thais to own this kind of premier houses,'' she said.

An example is her Cabana Grandview project on Chaweng beach. Of the four customers who bought pool villas costing between 14-18 million baht, three are Thais.

Tony Daniels, sales and marketing director of Santiburi Properties Co, the developer of Rawai Villas near Rawai beach in Phuket, said that almost all of the project's buyers were foreigners, particularly English and Canadian.

They bought the villas costing between 19 and 25 million baht for their own use. But sometimes they rent them and generate up to $600 per night per one villa.

``We are trying to attract interest from Thais. Many of them like our villas but they are reluctant to make a decision due to the ownership structure. The villas are leasehold properties and Thais want to own the land,'' he said.

Like the other villa projects in Phuket, Santiburi Properties designed a secure structure to permit foreign buyers to collectively own land through their holdings in a newly established company.

Jeremy Khan, a representative of Phuket Land Ltd, the sales agent of Villa Santi at the north end of Patong Bay, said the project has been dubbed the best selling spa report on the island since it was unveiled early this year.

Two of its eight superior residences and 17 out of its 20 spa villas costing from 9-25 million baht have been already sold.

``The project's competitive prices, good location and strong concept of being an Asian tropical style resort are factors contributing to the successful sales,'' he said.

The company will launch its 20-unit apartment suites covering between 120-270 sqm and pricing from nine million baht next year. The construction of the spa villas will finish next year while the whole project will be completed by 2005.

Martin Carpenter, managing director Nirvana Phutri Co Ltd which is developing 79 luxury conventional European-style houses in Chalong Bay worth around one billion baht, said the project targeted international customers as Phuket was a growing market for superior home projects.

``There is not an oversupply yet. Though the competition is tough but each project has a unique concept, consequently there are choices for buyers,'' he said.

The villas will come in four styles with lots between 110 and 400 square wah and prices around 12-35 million baht.

--Bangkok Post 2003-11-17