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The luxury apartment market on Phuket continues to show strength despite the much-lamented property market slowdown. In fact, a number of new high-end projects on the island now carry price tags similar to those commanded by prime locations in the capital, with luxury facilities to match.

A recent survey conducted by Raimon Land revealed that despite strong tourist numbers and a current preference towards condominiums amongst foreign buyers, the number of new condominium projects launched in resort destinations actually dropped in 2007. On Phuket, this means savvy developers have focused on quality rather than quantity, with several low-volume, high-end projects attracting wealthy investors.
One example of the new upscale projects on Phuket is “The Chava”, an 800 million Baht complex of luxury apartments on Surin Beach. Despite prices in excess of Bt 100 000 per square meter, the development has proved extremely popular amongst holiday home-buyers and investors, with over 65% of units already sold.

At The Chava, apart from an ideal location overlooking the popular Surin Beach, the developers are investing a lot of time and money in architecture and design, thereby ensuring that all the details of the residence match the expectations of big spending clients. The 45 contemporary high-end apartments are set within 5,000 sqm of tropical lavish gardens, with16 unit styles, with 2-4 en-suite bedrooms. The ground floor units enjoy private gardens with plunge pools, while the extravagant penthouse units boast sublime views across Surin Bay. Prices start from Bt15 million per unit.
According to Larry Cunningham, CEO at Phuket One Real Estate, projects like the Chava prove the island is still one of the most popular holiday home destinations in Asia. He believes buyers are as keen as ever to invest in quality apartments in prime locations. ”The sales on this project were not only driven by an increased interest in luxury apartments,” he said. “Buyers and investors also consider key factors such as location and build quality before making a decision, especially at the top end.”

The Chava also offers full five-star amenities with a 24-hour concierge service, valet parking, security surveillance, WiFi and an interior courtyard sanctuary set around a 35-meters swimming pool. The developers have appointed leading property agents Phuket One Real Estate and Colliers International to guarantee the investment and help generate high returns. “The average investor in this type of luxury product will only stay in the property for one or two months a year,” continued Larry Cunningham.”Buyers want to see a return, and the quality of the build and location guarantees them that. Even at this level it’s important not to lose sight of what people want from a beach holiday. The Chava has it – a great pool, a nice beach and good food right on your doorstep.”

Another luxury condominium concept that’s already generating plenty of interest is Andara, located on a hillside overlooking Kamala Beach. This development was originally designed as a villa and hotel complex and therefore already boasts a full range of facilities on site. The 37 luxury condo units will cost fom 700 000 to 2 million USD and with renowned Hong Kong property mogul Alan Zeaman behind the project, its not surprising that much of the interest is coming from investors based in the Chinese Metropolis. “The Adara name is already synonymous with quality,” said Thanita Arman from Paradise Phuket. “It doesn’t make a difference whether its condos or villas, the key factors that distinguish a high-end development are build quality, specifications and in-house services.”

At Andara, the latter includes three restaurants, a spa, tennis courts and a gym. There are also personalized furniture packages and a full management scheme to generate healthy rental returns. One of the reasons that apartments appeal to many investors is that they are generally easier to maintain than private villas. The fact that owners spend extended periods away from the property means that the security of a full time on-site management team adds to the security not only of the building but also the investment. At Andara, everything is taken care of for the owners, whether they are in residence or not. and the location and facilities are designed to guarantee yields.

Taking things a step further, he Phuket Royal Marina´s phase two development features an “Aquaminium” condo development with private internal yacht berths incorporated into the design. The distinctive spaces were designed to reflect every aspect of the consummate yachting lifestyle. The interiors are a chic reinterpretation of tropical modernity, and incorporate carefully considered luxuries while at the same time offering a fresh, open feeling throughout. Rooftop dining decks, elevated cabanas, ceiling rain showers, sleek kitchens and private Jacuzzis provide added appeal and convenience. “We were delighted with the market’s response to the condos offered for sale as part of the first phase of development,” said Norbert Zuber, Royal Phuket Marina’s Sales Director. “The Aquaminiums and Royal Villas, with their private berths and stunning design are so unique that we anticipate an equally strong level of interest.”

There’s a wide choice of choice of accommodation available at Phuket Royal Marina, with 2 and 3 bedroom apartments, duplex penthouse condos and even two, triplex penthouses. The latter features a private boat garage, boat Lounge and Jacuzzi, as well as a roof pool and garden with a private-access elevator direct to apartment.

Telecom tycoon Gulu Lalvani, founder of Binatone, is behind the development of the Phuket Royal Marina project. His vision is to establish a world-class yachting hub in one of the world’s most idyllic and accessible locations. Projects like his and Alan Zeaman’s support the results of Raimon Land’s recent Condo Focus survey, which suggests the recent sluggishness in the market is temporary. With a return to growth just around the corner, it seems now is a good time for astute investors to capitalize on the long-term growth that is expected in Thailand’s resort markets.

As featured on Asia Property Report