New hotel and condo developments flood Phuket’s property market

Construction News
An artists impression of one of the Melia Phuket Karon Residences

New hotel and condo developments flood Phuket’s property market

By Bill Barnett

The continuing wave of developers bringing hotel investment grade real estate to the Phuket real estate market is escalating.

Notable new entries include 74 units at the Melia Phuket Karon Residences that are now for sale. Pricing for one and two bedroom units starts at 8.4 million baht. A 7% three-year guarantee is offered with 30 days owner usage.

Meanwhile, at the newly launched Radisson Mai Khao, 110 condominium hotel residences range from 41-132 square metres. Prices go from 7.2 million baht with a 3 year guaranteed return of 6%.

And Laguna Phuket, which is a good barometer of the island’s broader resort-grade real estate sector, recently launched their Skypark entry level condominium under 3 million baht.

As real estate prices shrink, so is unit size, and pressure on the once dominant villa market is mounting.

There is growing concern that Phuket’s current real estate cycle is starting to mimic the big box condominium build-up in Spain’s resort property sector in the early to mid-2000’s and later came unhinged during the global financial crisis.

Bill Barnett has over 30 years of experience in the Asian hospitality and property markets. He is considered to be a leading authority on real estate trends across Asia, and has sat at almost every seat around the hospitality and real estate table. Bill promotes industry insight through regular conference speaking engagements and is continually gathering market intelligence. Over the past few years he has released four books on Asian property topics.