A recent report from C9 Hotelworks underscores Phuket’s leisure property market boasts an unparalleled supply valued at over THB80 billion (USD2.3 billion). This figure is projected to escalate further, reflecting the destination’s unparalleled growth trajectory in the sector.
A pivotal aspect of Phuket’s economic evolution from a tourism-centric economy to a real estate powerhouse is the blurring of boundaries between the hospitality and real estate sectors. Notably, Laguna Phuket, the island’s largest developer, has shifted its focus significantly from hotels to branded real estate, epitomizing this trend.
An illustrative example is provided by the Banyan Group, helmed by Singaporean tourism luminary KP Ho, which recently unveiled plans to develop an adjacent land bank to the Laguna Phuket integrated resort into a USD2 million lifestyle-driven branded real estate venture. This strategic shift underscores a broader trend towards a property-centric growth trajectory, departing from the erstwhile emphasis on hotel-led strategies.
“Phuket’s burgeoning real estate market is in bloom due to global migration trends, the rise of remote work culture, and Thailand’s progressive visa policies,” stated Bill Barnett, Managing Director of C9 Hotelworks. “Additionally, the proliferation of international schools on the island serves as a significant demand catalyst.”
Bill Barnett observes a pronounced shift in investment sentiment from hospitality to mixed-use projects, particularly post-pandemic. He notes a resurgence of interest from Thai-listed real estate groups, buoyed by renewed trading activity in the resort market and tourism stabilization. The surge in demand is further fueled by affluent overseas and domestic property buyers seeking investment opportunities or relocating to the island.
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Nestled in Maha Sarakham province, Northeast Thailand, the unassuming ordination hall of Wat Yang Thuang may resemble a simple rice barn upon first glance. However, a closer inspection of its walls, adorned with unique Buddhist art, transforms the ordinary into an extraordinary experience. These murals, depicted on the “sim” or ordination hall, provide a vivid portrayal of the Isaan people’s soul.
Based in Phuket, C9 Hotelworks is a renowned hospitality consulting group offering comprehensive research, analysis, and advisory services tailored to businesses in the hotel and tourism sectors. Specializing in market intelligence, feasibility studies, and strategic planning, the company provides invaluable insights for hotels, resorts, and various tourism-related projects, enabling clients to make informed decisions and maximize their potential in the industry.
Recent market entrants include The Standard in Bangtao, signaling sustained growth in this key area, alongside developments by prominent developers such as Sansiri and Gardens of Eden. Phuket’s tourism sector witnessed a significant uptick in room rates in 2023, leading to enhanced profitability for hotel owners despite moderate occupancy levels, attributed in part to subdued Chinese demand.
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The return of Thai banks to lending for greenfield projects underscores growing confidence in Phuket’s hospitality and real estate sectors. With land prices soaring, developers are compelled to integrate real estate components into hotel projects to ensure viability.
Barnett identifies several key drivers behind Phuket’s burgeoning real estate market, including global migration trends, the rise of remote work culture, and Thailand’s progressive visa policies. Additionally, the proliferation of international schools on the island serves as a significant demand catalyst.
In essence, Phuket’s transformation reflects broader global shifts amid unprecedented volatility, positioning the island as an international magnet for property investment. The burgeoning appetite for branded residences signals evolving buyer preferences, with anticipated expansions into non-hotel sectors such as fashion, automotive, and dining. With its unparalleled inventory of resort-grade branded residences, Phuket now rivals established urban destinations like Miami and Dubai as a billion-dollar marketplace.
