Bangkok--15 Jan--C9 Hotelworks
The upscale luxury villa segment has outperformed the broader Phuket property market for Q4 2008 in spite of recent political issues in Bangkok and a worsening global financial downturn, according to the Phuket Luxury Villa Market Report recently released by consulting firm C9 Hotelworks.
C9's Managing Director Bill Barnett said that "while take up rates are expected to soften for 2009 with the 'wait and see' attitude of buyers, supply and demand still remains favorable".
Key fundamentals at play in the market are the absence of purchaser debt which has stabilised capital values, a slowdown in new product launches that will build marketplace traction while the availability of premium land continues to shrink creating substantial barriers to entry. One emerging benefit of the crisis is the sharp reduction in construction costs in the region by 20-30%, although this is being offset by limited availability of developer debt in the Thai financial markets."
According to C9's report, a total of 304 properties priced from THB65 million (USD2 million) and above located within estate developments were for sale at the close of 2008 with projected increases to see this number rise to 367 moving into 2009 and beyond.
"Given the limited market size, re-sales of existing units will become more predominant as buyers shy away from taking development risk on off plan purchases," Mr Barnett added.
Geographical diversification is another key trend. Limited prime oceanfront land within the traditional West Coast areas is pushing development into southern Phang Nga province, just over the Sarasin bridge, Phang Nga Bay and into the East Coast of Phuket island. Hotel developments in these areas are rapidly influencing buyer sentiment on the back of international brands such as Jumeirah, Taj and the design team of Philippe Starck/Jean Michel Gathy's The Yamu.
Based in overall pricing parity comparisons the East Coast has now edged ahead with an average of THB128.2 million versus the West Coast at THB127.1 million, for units currently on sale.
Important links:
Map of Phuket's new luxury villa projects
Photo of C9 Hotelworks Managing Director, Bill Barnett
About C9 Hotelworks —
C9 Hotelworks is an internationally recognized consulting firm with extensive experience in the Asian region. Their core business focus is hotel and resort development, asset management/ownership representation and project feasibility and analysis, with key competencies including international hotel operator search, selection and contract negotiation, mixed use hotel and residential planning and operation reviews. A wide range of both institutional and private developers and a comprehensive portfolio of completed projects, give C9 the skill set and background to focus on key issues, evaluate complex ones and assist their clients in achieving solid results. Based in Phuket, Thailand and led by Managing Director Bill Barnett, who has 23 years of experience in Asia Pacific, the firm is well situated to serve an increasingly demanding marketplace.
www.C9hotelworks.com
For further information and high resolution images, please contact —
Bill Barnett, Managing Director
Email: [email protected]
Mobile: +66 (0)8 1956 1802