Property: Patong Beach Moves Upmarket

[george]

Patong Beach moves upmarket

PROPERTY: Famed Phuket destination offering more variety, but at higher prices

PHUKET: The quality of new developments at Phuket's Patong beach, including residential and hotel projects, retail centres and high-end restaurants, wine bars and cafes, clearly indicate that its image is rapidly changing, according to Stephen O'Brien, managing director of Knight Frank Phuket.

``While Patong has its own unique brand, it is part of the overall Phuket package. However, it's transforming itself into a cosmopolitan hub that caters for everyone. There has been a huge commitment from both the private and public sectors to beautify Patong and the results are paying off,'' he said.

Aside from this, the price of land along Patong's beach road has increased as much as 300% in some areas with the most expensive plots valued at 50,000 baht a square wah, or 12,500 baht a square metre. This followed an island-wide increase in government-appraised land values by 65%, Mr O'Brien said.

This is being fuelled by a continuing property boom and population increase, he said, adding that many people in Phuket talk about a property boom that is about to happen but in his opinion it is already under way.

Statistics support this view as property sales in the first six months of 2003 were 23% higher year-on-year. Mr O'Brien said this was remarkable considering there was war, Sars and the continuing threat of terrorism.

``So long as the sun continues to shine in Phuket, people will continue to come,'' he said.

Currently the demand-supply equation in the Phuket property market is well balanced with products below 16 million baht continuing to sell well, Mr O'Brien said.

``While there is a lot of stock to choose from in that price category, it is all selling out well. Also, developers are devising new stages or projects that each have a point of difference or are rather unique,'' he said.

One interesting new project in Patong is Villa Santi, which is just 10 minutes from the heart of the beach and consists of 48 spa villas, apartments, and residences perched up on landscaped slope overlooking Patong Bay. Mr O'Brien said the views are sensational and the setting in a lush tropical landscape special. Nearly all of the 240-square-metre, two-bedroom spa villas have been sold and eight private residences that can be custom-fitted to suit individual buyers have also been selling well.

Bart Duykers, Villa Santi's developer, said the project had been designed with a rental focus clearly in mind. ``When you think of real estate you consider price, position and in Phuket you have to say management, and this is Villa Santi's point of difference,'' he said.

Mr O'Brien agrees, pointing out that with an experienced management team or branded hotel managing the villas the price would generally rise by 25-30%. Demand for well-managed properties has also increased, moreso from buyers who live abroad and are concerned about long-term objectives.

The investment market accounts for about 38% of investors in Phuket, they want to make sure that their residences are well maintained and the upkeep of the development is at all times first class, Mr O'Brien said, adding even those who buy for lifestyle seek professional management because about 75% of all Phuket property sales are done in Hong Kong and Singapore.'' It's difficult to clean your pool when you are living in Causeway Bay,'' he quipped.

With the range of products available in Phuket being diverse, it is up to the developer to devise products that have a point of difference, Mr O'Brien said. Villa Santi illustrates this because the developers have devised a lifestyle product with an investment focus. With a full turnkey package, buyers feel satisfied knowing that they have the flexibility of staying for unrestricted periods in their villas and when they are not there they can receive rental return.

Mr Duykers does not see the development as being run as a hotel, more as an integrated resort.

``We have provided exclusivity in every sense, he said, adding his inspiration for the design came from a number of very successful developments in Bali, whereby one is part of the overall fabric of the project but still has total seclusion and privacy in one's villa.''

--NINA SUEBSUKCHAROEN

[the gentleman]

It makes me laugh - knights Frank has been in Phuket for 4 months and his remarks and quotes, come straight from the government that they issued 2 weeks ago!.

To say that Phuket is waiting for a boom and in his opinion it is happening now is not correct. It started 5 years ago and has grown ever since at a fast pace..

They were advertising this guys position only 5 months ago - another know all, with no Phuket credentials!

Where did you get this article/advertisement George?

[mijan24]

Question to "the gentleman" or anyone with good info resources. What do you know of the real estate market in Ranong??

Mijan24

[george]

Where did you get this article/advertisement George?

The article came in our ordinary news feed, but I saw it published in Bangkok Post or The Nation as well.

[the gentleman]

Question to "the gentleman" or anyone with good info resources. What do you know of the real estate market in Ranong??

Mijan24

I dont know anything about that market, but what I can tell you is that it rains 250 days a year - I usually go down there for my visa runs, not a nice place really. You could look for something outside of Khao Lak - Baan Sak and further down on the way to Ranong, some nice beaches and still relatively untouched from holiday makers.

[Digger]

It makes me laugh - knights Frank has been in Phuket for 4 months and his remarks and quotes, come straight from the government that they issued 2 weeks ago!.

To say that Phuket is waiting for a boom and in his opinion it is happening now is not correct. It started 5 years ago and has grown ever since at a fast pace..

They were advertising this guys position only 5 months ago - another know all, with no Phuket credentials!

Where did you get this article/advertisement George?

I'd say that he's done quite well in getting this coverage. Much of what gets printed in the media is re-cycled, but the key is of course getting the coverage with your name associatted with it. That is I suspect why Knight Frank continue to be one of the leading 'high end' names associatted with the real estate business and certainly one of the first companies an overseas investor is going to talk to. There must be a dozen or so real estate sharks in Phuket - sorting out the wheat from the chaff is not always easy.

Nothing personal but it sounds like your a bit jealous !!!

Just my two penny's worth

[Maverick]

I agree with Digger - some good PR from a company with a decent reputation overseas - cant knock that (and good on him as he has managed to get various national papers to print such obvious hype) however........Phuket has of course been over priced for a very long time and coupled with a clear traffic problem (which will surely get worse).........articles like this are necessary to keep the property agents in work and keep the 'investors' coming.

[the gentleman]

It makes me laugh - knights Frank has been in Phuket for 4 months and his remarks and quotes, come straight from the government that they issued 2 weeks ago!.

To say that Phuket is waiting for a boom and in his opinion it is happening now is not correct. It started 5 years ago and has grown ever since at a fast pace..

They were advertising this guys position only 5 months ago - another know all, with no Phuket credentials!

Where did you get this article/advertisement George?

I'd say that he's done quite well in getting this coverage. Much of what gets printed in the media is re-cycled, but the key is of course getting the coverage with your name associatted with it. That is I suspect why Knight Frank continue to be one of the leading 'high end' names associatted with the real estate business and certainly one of the first companies an overseas investor is going to talk to. There must be a dozen or so real estate sharks in Phuket - sorting out the wheat from the chaff is not always easy.

Nothing personal but it sounds like your a bit jealous !!!

Just my two penny's worth

No digger, not jealous mate (my business is well known here)- the quote came from a government official and then he has rebranded it with his name. Marketing wise, very good for his company - cudos to him. My point was he didnt write it and received his newly appointed position from an advertisement on the Phuket Gazette.

Its great to have the name of a good company behind him, but he has no credentials for Phuket - so why would you go to his company?

It is very important to know your area and especially Phuket as it is the bench mark for Thailand in real estate and it also has land title problems, that you need to be aware of, first hand.

There is more than a dozen sharks here, there are 200 Real Estate companies. Out of those there is a percentage that is reputable - If you have been in business here for more than 5 years, you must be reputable as the Island is to small to be a shark for to long - you will get caught out.

I would be picking a company that has seen Phuket evolve and can tell you, through experience, where is good for the money and how much that land/property has risen since the last time it was sold. I wouldnt be listening to a company thats been here a week and has no credentials in Phuket what so ever.

Maverick - I totally agree, Phuket is not worth the money and it doesnt have infrastructure to support it. Not just the roads - the telephones, electricty, water.

You can be sitting in your leather chair, watching the sunset from your oversized balcony, in your oversized 100,000,000 Baht home and then the electricity will be cut for 2 hours or your water has been turned off. No aircon and no water - lovely!

[Maverick]

The Gent

Sounds like yr speaking from personal experience - yr 100 million property sounds impressive!

I looked at Phuket a year ago and had some experience of the real estate cowboys down there offering me hillside plots with promises that the title would be chanote 'soon'. Just after that the title problems appeared in the press. Driving around at certain times of day showed the infrastructure problems and I can get that here in Bangkok. I couldnt compete with the outside money which had inflated the property prices (as I wanted beach front situation). Gave it up and started looking elsewhere (and still am). Also looked further up (across the bridge cant recall the name about half hour/hours drive with some beachfront but lots of nearby prawn farms polluting the sea.

[the gentleman]

The Gent

Sounds like yr speaking from personal experience - yr 100 million property sounds impressive!

I looked at Phuket a year ago and had some experience of the real estate cowboys down there offering me hillside plots with promises that the title would be chanote 'soon'. Just after that the title problems appeared in the press. Driving around at certain times of day showed the infrastructure problems and I can get that here in Bangkok. I couldnt compete with the outside money which had inflated the property prices (as I wanted beach front situation). Gave it up and started looking elsewhere (and still am). Also looked further up (across the bridge cant recall the name about half hour/hours drive with some beachfront but lots of nearby prawn farms polluting the sea.

No mate, its not my home, it was a an example. There are houses selling here for as much as 200,000,000 Baht - its staggering how much money is on this Island.

If you went to Australia with that money you could buy half of Tasmania or a big chunk of east coast.