Contributed by REP_newsdesk:
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 Phuket sets the trend!
comment: the real estate sector here is doggedly moving ahead and for good reason ...
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12 April, 2006
Phuket's rather youthful but seemingly vibrant real estate scenario may in part be attributed to arguably positive feedback generated by those who came, saw and invested in the last decade. The current surge in new developments and chunky capital gains on recent resales support this refreshing outlook in an otherwise lack-lustre economy.
With competition comes innovation. Now there's even a growing affinity towards inland, hillside properties in serene neighbourhoods which hitherto were rated second choice. Every nook and corner has a success story. The flurry of alternatives in terms of house type, view, location, price, fixtures and fittings makes for an interesting basket of options. Sounds like buyers are indeed spoilt for choice - true, but early birds still prevail. Choice lots are all but gone if you don't act fast. The message is that high-end properties still sell well, mid-range ones get snapped up in waves of marketing and cluster homes are sold out even before you have a chance to be on site!
All's well on the sales front and investment is healthy and burgeoning. So what's with the bull run? There's a difference between replicating a winning formula and adding to it. As if by design, developers have come up with such a variety of sustainable propositions that buyers are simply sold on them. Nobody is whinning - it seems that each and every development is having it's fair share of success. Slow or fast, they all sell.
Buyers buy because their needs are met. The beauty of building in Phuket lies in the exotic nature of its marketplace - we attract both occidental and oriental interests. Developers of different creeds and cultures build on concepts they believe suit their own target markets. Niche marketing strategies are invariably employed to home in on target groups of buyers who in demographic terms are necessarily quite inclined to consider buying that particular piece of property. Factor in "idyllic Phuket" and you have a winning formula. Keep adding new propositions to the fold and you have a healthy real estate economy for years to come.
It is perhaps this fortuituos mix of target markets that has put the spin on Phuket's realty scene. And if we liken the distribution of luxury to mid-range and boutique developments to a pyramid structure in terms of supply, less units need be sold at the top of the range to equal the percentage of sales further down. With more and more projects having sold out, the net effect is a property sector oozing with confidence as demand outstrips supply on all fronts.
postnote:
Pocket developments of 3 to 8 residential units (villa homes) find a niche market in those who prefer small or boutique cluster projects which are presumably easier to manage. Most are built to western standards by foreign project teams who are either owner-developers or joint-venture concerns. The advantage lies in being able to negotiate personal tastes in design and relatively shorter completion times. The drawback is most are sold out when you do get to hear about them! Still it's worth asking around, talk to agents and physically visit the locality you would like to reside in and you might come across one that's still on the drawing block.
Needless to say, grandiose developments that sell push up the ante. We now have villa homes breaching the six million dollar mark and no one's blinking. Simple reason is Phuket attracts a diverse cross-section of buyers who are invariably spoilt for choice. There's one for every budget - mid-luxury homes dot the island in prices that range from an affordable US$250,000 to US$750,000. Units that cost less than US$250,000 can be found in good quality local developments with proven track records in sales and management. Seems whatever the target price, someone out there will say yes and buy!
Editorial Desk
GreenAcres Consultancy (GAC)
member of The REP_newsdesk
greenacres@realestate-phuket.com
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