Sea front properties in Phuket perform the best, report shows

Construction News

Luxury properties with a sea frontage on the Thai island of Phuket were the best performing properties, according to the latest real estate market overview.

The Residential Market View quarter three 2010 report from CB Richard Ellis shows that there was a continued recovery in tourism arrivals and the consultants expect that this trend will continue into the high season in the fourth quarter.

The best performing sectors of the property market were in the very best properties that have sea frontage with an established reputation and entry level projects, the report says.

It estimates that approximately 84% of units in completed of condominiums buildings have been sold and the average asking price of condominiums by developers was approximately THB 90,000 per square meter.

There was no new supply of villas in this quarter and the total stock of completed villas in was 2,787 units. There are a total of 133 villas that are expected to be completed in the fourth quarter of 2010, with 343 villas expected in 2011.

‘Based on our new survey, the sales performance of total existing and future units was 77%. Out of 3,749 villas, 2,897 units have been sold and 852 units are still for sale. The sales rate of all existing and future luxury and high-end units was 74%. Out of 880 luxury and high end units, 653units were sold, leaving 227 units remained unsold,’ the report adds.

The company also reports that international passenger arrivals to Bangkok Airports increased by 6% in December and international arrivals to Phuket increased by 25%, citing figures from the Airports of Thailand Public Company Limited.

Total international passenger disembarkations at Bangkok’s Suvarnabhumi and Don Muang airports were 1,642,901 in December 2010 compared to 1,544,158 in December 2009, an increase of 6% year on year and an increase of 71% on December 2008.

Domestic passenger disembarkations at Suvarnabhumi and Don Muang airports were 581,182 in December 2010 compared to 584,935 in December 2009, a decline of 1% year on year but an increase of 67% on 2008.

International disembarkations at Phuket’s airport were 214,056 in December 2010 compared to 171,016 in December 2009, a 25% increase year on year and a 53% increase on December 2008. Domestic passenger disembarkations were 183,277 compared to 187,596 in December 2009, a decline of 2% on December 2009 but an increase of 58% on December 2008.

The report points out that it should be noted that tourist arrivals in December 2008 were impacted by political unrest that resulted in the closure of Suvarnabhumi airport.


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