Prices of new “super prime” properties launched in Phuket this year show an increase of 120 per cent compared with similar ultra-high-end properties launched between 2007 and 2011, reports Knight Frank (Thailand).
Selling prices of new super prime projects in Phuket launched in 2015 range from US$7.5 million (more than B269.5 million) to US$15 million (more than B539 million) a unit, explained Risinee Sarikaputra, Knight Frank Thailand’s Director of Research and Consultancy.
The resale price of super prime properties in Phuket has risen to US$20 million a unit this year, she added.
According to Knight Frank Thailand Research, no new super prime projects in Phuket were launched between 2012 and 2014. However, the selling price of the super prime projects, launched between 2007 and 2011 and available for sale in 2014, were sold from US$3 million (B107.8 million) to US$7 million (B251.5 million) per unit.
“The majority of super prime project buyers in Phuket are expatriates based in Asia, particularly in Hong Kong, Singapore and Shanghai,” Ms Risinee noted.
“For the most part, these buyers have lived and worked in the region for a number of years and tend to know Phuket well by having spent holidays on the island,” she explained.
“The emerging buyers are Australians, French and Canadians, as well as Asian travellers. Buyers acquire super prime properties as their second home, holiday place or retirement residence. They are most often owners of a property elsewhere, and in many instances, they own two or more properties throughout the region and world.”
Such buyers tend to be emotionally involved in the purchase and like to visit the site and be familiar with the area prior to reserving a unit, which can lengthen the buying process, Ms Risinee said, adding that the average amount of time from start to finish of the sales process in Phuket is over one year.
Location is a key factor for sales, and people pay a lot of attention to the site, views and immediate environment, including other developments and the availability of amenities.
“Luxury property in Phuket encompasses the villa with a selling price of over B100 million a unit; these are mostly oceanfront villas managed by international branded hotels,” Ms Risinee said.
“The villas under this category mostly offer over four-bedrooms, with spacious living, dining and entertainment spaces. They also provide world-class leisure facilities, with a private gym, spa room and private pool.
Such villas have a usable area of over 1,000 square metres and are located on over two rai (over 3,200sqm) of land.
“Moreover, they reflect an excellent standard of construction using high-quality materials and specifications, a functional layout, ample privacy for residents and premium decoration,” Ms Risinee said.