Condo market in Phuket full of promise
The Phuket condominium market is showing bright prospects in the Year of the Dragon and Kata and Karon will be the areas where enormous number of condominiums will mushroom, according to Knight Frank Thailand research.
The research has indicated that previously the majority of condo supply was concentrated from Layan Beach down to Bang Tao Beach, Surin Beach, Laem Sing Beach and Kamala Beach (north-western Area), accounting for about 31 per cent of total supply, followed by the mid-western Area, covering the area along Kalim Beach down to Patong Beach at the end, accounting for 28 per cent.
In 2011, the new area for condominium shifted to Kata and Karon Beach (southwestern area), accounting for 59 per cent of the new supply in 2011, followed by the mid-western area, accounting for 38 per cent, while there was only 3 per cent located in the northwestern area.
Nattha Kahapana, director of Knight Frank Phuket, said that the developers have adjusted their plans for the surge in new demand. It is already known that condominium buyers in Phuket previously were from England, Germany, Scandinavian countries as well as expatriates working in Singapore and Hong Kong as there is daily morning flight from Phuket to Hong Kong and Singapore. Recently, the emerging market is from Middle Eastern, Asian and Russian buyers. The target group prefer Patong Beach due to its reputation for nightlife as well as the two-kilometre beach that runs the entire length of Patong. However, the majority of supply was in Kata due to the availability of land as well as the affordable land price, which makes it suitable for budget condominiums for the emerging market.
He believed that future condominium supply in Phuket will be in Patong, Karon and Kata. Eden Oasis Phase 2 was launched recently, with 11 completed units, whereas Amari Residence Phuket will be the new residential development on Patong Beach. There will be 190 condominium units and 10 pool villas on the current site of the Amari Coral Beach Resort. However, the area which will attract locals in Phuket Town is another area which will be developed as a condominium project. For instance, the project Phumantra will consist of 15 buildings and there will be only 9 units in each building. Many listed developers are in the process of negotiation for land in Phuket such as Sansiri, Pruksa, LPN and others.
