Bangkok--9 Nov--CB Richard Ellis
Phuket has long established its position as the destination of choice in Southern Thailand. Phuket’s sophisticated resort property market offers a wealth and variety of property, which, coupled to the island’s infrastructure and world-class facilities, make it the prime choice for overseas investors. This however is about to change as the island is running thin on prime sites to develop. Hoteliers and developers are now looking further afield, in new areas like Phang Nga, Krabi and islands off the coast of Phuket, to find untouched scenery on which to establish luxury resorts.
Mr. David Simister, Chairman of CB Richard Ellis Thailand explains, “Tourism has always paved the way for resort property markets in Thailand, and the recent opening of Krabi’s new international terminal is leading the development of both hotels and residential property projects in Krabi. Phuket will remain the pinnacle of resort destinations on the Andaman Sea, but it will be complemented by new areas.”
The improvement of Krabi’s local infrastructure is not only a public initiative. The Cove, Krabi is about to announce the opening of the region’s first branded 18-hole championship golf course, The Montgomerie, designed by golfing legend Colin Montgomerie, as part of a fully integrated luxury beachfront resort. The resort will have a wide range of condominiums and villas for sale through sole agent CB Richard Ellis. With facilities unrivalled by any other residential development in Thailand, and two kilometers of pristine beach, The Cove, Krabi is the only development to offer such a wide variety of five-star services on site.
“Phuket’s property market has in seven years seen prices increase (on quality development) by 300-400%. Even today, many projects see their value double between launch and completion. 2007 is effectively the first year of Krabi resort property market and CB Richard Ellis predicts prices will increase substantially as the market develops.” added Mr. Simister.
“We are already seeing a lot of interest for Krabi properties, as investors want to enter this new market at "ground level". With the launch of strong projects like The Cove, Krabi, we anticipate the demand will rise strongly over the near future.”
For those who really are looking for a hideaway mixing luxury with nature, there are a number of smaller developments under way on the many islands scattered throughout Phang Nga Bay. Koh Jum is the home to one unique development which focuses on blending completely with its naturally environment. Family homes on large plots set directly on the beach and only accessible by boat are now for sale in this stunning island.
However, recent trends show that the concept of investing into branded resort residences is increasingly popular. Phuket already has a number of properties being sold on this basis, which allow buyers to enjoy limited usage of their units for holidaying, and return substantial yields as properties are leased back by the hotel operator and managed to top quality resort standards. Typical returns for buyers in this market are in the region of 6 —10%.
Branded projects will become available shortly, including the Jumeirah branded hotel pool villas in Barama Bay, a private island also offering large private residences for sale. A prime site in Bang Tao Beach on the west coast of Phuket is also about to announce an international five-star operator, with pool villas for sale.
CB Richard Ellis customers can already register to ensure they receive preview details on the above projects, before they become available to the greater public.
"Strong projects will be launched in both Phuket and Krabi in the closing months of 2006. We anticipate both markets will be very active, as investors rush to buy in the last prime locations on Phuket, and the first ones in Krabi." concluded Mr. Simister.
Direct International Flights at Krabi International Airport
Name Airline Destination Frequency of Flights
Tiger Airways Singapore 1 daily Monday -Thursday & Saturday;
2 daily Fri & Sun
Nova Airlines Stockholm, Dubai 1 weekly
Oy Air Finland Helsinki, Abu Dhabi 2 weekly
Source: CB Richard Ellis Research & Consulting
About CB Richard Ellis
CB Richard Ellis Group, Inc. (NYSE:CBG), a FORTUNE 1000 company headquartered in Los Angeles, is the world's largest commercial real estate services firm (in terms of 2005 revenue). The Company serves real estate owners, investors and occupiers through more than 350 offices (including affiliate and partner offices) worldwide.
CB Richard Ellis established an office in Bangkok in 1988 and in Phuket in 2004. CB Richard Ellis (Thailand) Co., Ltd. has grown to be a leading real estate services provider, offering a full range of services including sales and leasing for all types of property, property and facilities management, valuation and advisory, and research and consulting. For more information, visit the company's website at www.cbre.co.th .
For further information:
Mr. David Simister
Chairman —Thailand
+66 2 654 1111
Ms. Ngamjai Jearrajarat
Corporate Communications Manager
+66 2 654 1111 Ext. 522
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