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| 23 Dec 2009 09:02:30 am |
| PHUKET 2009: An Endless summer |
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As many of you will be aware we cancelled low season this year in Phuket and have been blessed with true summer weather all year. We have had about 5 storms, and it rarely rains for more than half an hour in a stretch. In early October the west coast seas settled down unusually early and we have been enjoying Maldives type water and weather since then. In prior years big storms can lash our coastline, sometimes right up to Christmas, but this year the ocean had no fire in its belly. Today there are 15 boats including a number of 100 plus footers perched off the Amanpuri, we have been watching people waterskiing off Surin since October and this week have the Kings Cup, with 100 yachts converging on Phuket for big winds. They will be praying for storms or will be baked and burnt lilting off the start line!
AN END TO THE MEXICAN STANDOFF
After an eerily quiet 9 months in actual deals, despite a busy constant stream of interested surprisingly very wealthy clients visiting Phuket throughout the GFC, we see a thawing in negotiations and an increasing number of transactions, although the prices are very choppy. Sellers reduced prices back to a long term “fair valuation”; off about 30% from the peak highs however flush buyers had been seeking distress pricing and a further 30% discount without success. Today the pendulum is starting to swing the other way.
THE DEVELOPERS
Developers are still paying virtually the same price for construction materials, project managers and labor. Quality sea view land is only getting scarcer in Phuket and there is no increase in our availability long term. Also most projects went into the GFC under duress from 2 years of political storms and Thailand issues, so had escaped the worst of the speculative excess. We have seen Developers do good deals this last month, free furniture packages, extended payment terms and free change orders which have helped defrost the standoff.
Developers, despite not being able to reduce prices dramatically are being realistic, sellers of luxury homes are getting fair value prices, leaving buyers with a great long term asset, yield possibility and medium term capital appreciation of 20-40%. Competition of services offered continues to be the buzzword from buyers, with rental programs, solid property management and access to boats and beach clubs highly sought after by buyers, and in some cases such as Andara, Trisara and the Amanpuri resale prices are up as much as 100% on purchase price only two or three years..
THE SELLERS ARE STILL NERVOUS
Tough lending requirements (read virtually zero financing) meant owners saw little need to panic and lose a prime asset at a time of low liquidity. Tourism is off some 20% over 2008 but High season is now in full swing and all the main hotels are jammed already. Occupancy into February 2010 is likely top go close to 100% at many of the 5 star hotels and virtually every big villa is rented through the peak season (despite a doubling in supply of finished villas over 2008 ). In 2009 there has been a steady slew of high end renters and we know of one 6BR villa that has maintained 85% occupancy all year at USD800 – 4,000 a night so it’s not all bad, and in many cases they are getting some yield but with wobbles such as Dubai the sellers are rightfully still nervous.
THE BUYERS ARE BACK
Phuket was fortunate in that the market, as an all cash one is made principally of end users and an increasing number of permanent residents still escaping capital cities. Solid Global entrepreneurs and retirees continue to choose Phuket over other destinations as their Asian base. There have always been very few banker type buyers, as their vacation times are too precious, so the meltdown of investment banks and their workforce/bonuses have had little impact. Hong Kong remains our core market at the high end, although rich Brits, Germans, Scandinavians and Italians continue to escape feudal Europe.
2010 Outlook
As we finish the fourth quarter there has been a marked thawing in the frost and intransigent negotiations that have frustrated all parties throughout 2009 are now going through. Buyers, with bullish regional equity rebounds, a relaxation in general global business and a back to R&R mentality for the well healed has meant buyers have started writing cheques again.
Developers who have shown financial strength this year and have made solid construction progress will be signing deals and we may well find that the luxury market in Phuket, by end of Q1 2010, moves to an UNDER SUPPLY of new quality developments. This could well surprise many people.
The GFC will rumble into 2010 and I am sure will throw off more surprises on the downside. The United States is in deep trouble, Europe fracturing, Africa unstable with expats fleeing to the coast. In Asia, places like Saigon for example (new direct flights to Phuket) are now getting log jammed with traffic and pollution, and is looking like many other under-infrastructured, over-populated Asian city where the long term expats are leaving. With huge population growth over the next 20 years in all major Asian cities this pollution will only get worse.
In our immediate vicinity of Bangkok, Saigon, Malay, Singaporean, Tokyo, Shanghai and HK wealthy investors are looking for quality of life and a healthier family environment. Those buyers will continue to choose Phuket as the number one alternative place to spend substantial time, for its beaches, infrastructure, schools, connectivity, lifestyle, food and, put simply, because we Love Thailand.
If this take up quickens don’t be looking for a chair when the music stops.
On behalf of our team we wish you a Merry Christmas and hope to see you here in Phuket soon.
Nick Anthony is managing partner of Indigo Real Estate and a resident of Surin Beach since 2001. Indigo is a leading luxury property agency and enjoys a strong reputation for advising buyers. It was voted agency of the year in 2008 and again in November 2009 by the Thailand Property Awards.
nick@indigoRE.com
www.indigoRE.com |
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Category : Real Estate
| By : admin |
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| 23 Dec 2009 08:58:37 am |
| THAILAND’S “AGENT OF THE YEAR” ASSESSES THE 2010 GREATER PHUKET PROPERTY MARKET |
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10 THINGS TO WATCH FOR IN THAILAND REAL ESTATE NEXT YEAR
Phuket, Thailand: For the second consecutive year, Indigo Real Estate, with offices in the south Thailand provinces of Phuket and Krabi, were awarded the "Best Thailand Agent" at the 2009 Thailand Property Awards, November 7th, 2009 in Bangkok, Thailand.
Nick Anthony and Tom Travers, the Managing Partners of Indigo Real Estate, have put their heads together to give their assessment of how the Thailand market has been affected by the recent world economic crisis and what to watch for in southern Thailand property in 2010.
1. PHUKET SHAKES OFF WORLD ECONOMY PROBLEMS
The global financial crisis will rumble into 2010 and will throw off more surprises on the downside. The United States is still in deep trouble, Europe fracturing, Africa unstable with expatriates fleeing to the coast. However, in Phuket most projects went into the global financial crisis under duress from the previous 2 years of political storms and Thailand-based issues so most developers escaped the worst of the speculative excess. Developers have been doing good deals in the last quarter of 2009 offering free furniture packages, extended payment terms and free change orders which have helped defrost the buying standoff.
2. THE END TO THE MEXICAN STANDOFF
After an eerily quiet 9 months in actual deals, despite a busy constant stream of interested wealthy clients visiting Phuket throughout the global financial crisis, there has seen a thawing in negotiations and an increasing number of transactions, although prices are very unpredictable. Seller’s reduced prices have gone back to a long term “fair valuation”; off about 30% from the peak highs, however cashed up buyers had been seeking distress pricing and a further 30% discount without success. Today the pendulum is starting to swing the other way as the supply of value-priced finished villas are limited.
3. COMPLETED, WELL MANAGED PROJECTS WILL ATTRACT BUYERS
‘Competition of the project’ continues to be the buzzwords from buyers, with rental programs, solid property management and access to boats and beach clubs highly sought after by buyers. Developers, despite not being able to reduce prices dramatically, are being realistic; sellers of luxury homes are getting fair value prices, leaving buyers with a great long term asset, yield possibility and medium term capital appreciation of 20-40%. Completed, well-managed villa projects will continue to outperform the other market sectors and in some cases developments such as Andara, Trisara and the Amanpuri will see their resale prices rising as much as 100% on purchase price from only two or three years ago.
4. LUXURY UNDER-SUPPLY COMING
Developers who have shown financial strength this year and have made solid construction progress will be signing deals which will see the luxury market in Phuket moving to an “under supply” of new quality developments by end of Q1 2010. This could well surprise many people. Quality sea view land is getting scarcer in Phuket and there will be no increase in this type of land available while finished luxury villas for resale are currently in short supply.
5. VILLA RENTAL MARKET WILL CONTINUE TO GROW
Tourism is off some 20% over 2008 but high season is now in full swing and all the main hotels are full already. Occupancy into February 2010 is likely top go close to 100% at many of the 5 star hotels and virtually every big villa is rented through the peak season (despite a doubling in supply of finished villas over 200 . In 2009 there have been a steady slew of high end renters. For instance, some villas in the Surin area have maintained 85% occupancy all year at USD 800 – 4,000 a night.
6. BUYERS ARE BACK BUT STILL CONCERNED
As we finish the fourth quarter there has been a marked thawing in the frost and intransigent negotiations that have frustrated all parties throughout 2009 but deals are now going through. Buyers, with bullish regional equity rebounds and a relaxation in general global business are back to R&R mentality and this has meant buyers have started writing cheques again. Political interests are always the wild card in Thailand although Phuket is increasingly becoming more isolated, independent and immune to Bangkok volatility.
7. PHUKET IS STILL ASIAN’S TOP CONTENDER
In Asia, places like Saigon are now getting log jammed with traffic and pollution, and is looking like many other over-populated Asian cities where the long term expatriates are leaving. With huge population growth over the next 20 years in all major Asian cities this pollution will only get worse. In our immediate vicinity of Bangkok, Saigon, Malay, Singaporean, Tokyo, Shanghai and Hong Kong wealthy investors are looking for quality of life and a healthier family environment. Those buyers will continue to choose Phuket as the number one alternative place to spend substantial time, for its beaches, infrastructure, schools, connectivity, lifestyle, food and, put simply, because no country in the region can offer what Thailand does overall. Solid Global entrepreneurs and retirees will continue to choose Phuket over other destinations as their Asian base.
8. BROKERS SURVIVAL DEPENDANT ON REPRESENTING BUYERS
Today’s Thailand property buyer is savvy, seeks value, and is well informed on the range of property available through the internet. Buyers are looking for representation from an agent that present quality projects and developers with experience and balance sheets to match their bravado. Agents must be prepared to do battle on their behalf with the buyer’s interests at heart. Agencies that are seen as a “sellers” agency – listing all properties at the highest possible price – will lose customer’s trust and find the Mexican standoff continuing into 2010.
9. KEEP AN EYE ON KRABI PROVINCE
With good beachfront and sea view land becoming scarcer in Phuket, buyers are starting to follow the Phra Nang peninsula south to Krabi Province. While most projects in Krabi lack the quality and architectural value seen in Phuket, demand in the market will soon change this. In particular, Koh Lanta island has become a contender as one of Asia’s hottest new vacation and holiday home locations. With its large selection of white sand beaches, proximity to world class dive sites and spectacular boat anchorage, one can understand why this island, is attracting so much attention.
10. HOT PROJECTS TO KEEP YOUR EYE ON
Limited completions in 2010 will mean tight supply. Watch for the first completed villas at ISTANA PHUKET above Naithon Beach which will soon redefine what real luxury villas are in Asia. Gary Fell’s design enjoy superb detailing and will be quite possibly the best interiors on Phuket. Up at Natai beach SAVA is powering ahead for completion in 2010. The roof structures are up, pools being tiled and as a big family home with direct ocean access it doesn’t get much better any where in the region. MANDALA CONDOMINIUMS are now completing, and are unusually launching for sale at the same time. Attractively priced, nicely detailed and with no risk they make an excellent investment property or beach pad being 300m from Bang Tao Beach. Following the immense success of the exclusive Andara Luxury Villas, the Kamala headland development is now offering ANDARA APARTMENTS with 2, 3, and 4 bedroom apartment suites. The TAJ PHUKET are readying for launch in 2010, and will be Phuket’s most luxurious combination of hotel and managed villas, nestled into three private beaches on Koh Lon Island, south of Sri Panwa. |
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Category : Real Estate
| By : admin |
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| 02 Oct 2009 09:06:44 am |
| PHUKET: AN END TO THE MEXICAN STANDOFF |
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After an eerily quiet 9 months in actual deals, despite a busy constant stream of interested surprisingly very wealthy clients visiting Phuket throughout the GFC, we see a thawing in negotiations.
There was a “Mexican standoff” for most of 2009 in Phuket, as sellers reduced prices back to a long term “fair valuation” a reduction of around 30% from the peak highs however flush buyers have been seeking distress pricing and a further 30% discount!
The result was virtually no transactions.
THE DEVELEPORS
Developers are still paying virtually the same price for construction materials, project managers and labor. Quality sea view land is only getting scarcer in Phuket and there is no increase in our availability long term. Also most projects went into the GFC under duress from 2 years of political storms and Thailand issues, so had escaped the worst of the speculative excess.
THE SELLERS
Tough lending requirements (read virtually zero financing) meant owners saw little need to panic and lose a prime asset at a time of low liquidity. Tourism is off some 20% over 2008 but there has been a steady slew of renters and we know of one 6BR villa that has maintained 85% occupancy all year at USD800 – 4,000 a night so it’s not all bad. As many of you will be aware we cancelled low season this year and have been blessed with true summer weather all year. We have had about 5 storms, and rarely rains for more than a half an hour. Today, as the Philippine storm blows through it’s a spectacular blue sky October day, and I am battling to get this out so I can go to the beach!
THE BUYERS
Phuket was fortunate in that the market, as an all cash one is made principally of end users and an increasing number of permanent residents still escaping capital cities. Solid Global entrepreneurs and retirees continue to choose Phuket over other destinations as their Asian base. There have always been very few banker type buyers, as their vacation times are too precious, so the meltdown of investment banks and their workforce/bonuses have had little impact.
Q4 OUTLOOK
As we enter the fourth quarter there has been a marked thawing in the frost and intransigent negotiations that have frustrated all parties throughout 2009 are now going through. Buyers, with bullish regional equity rebounds, a relaxation in general global business and a back to R&R mentality for the well healed has meant buyers have started writing cheques again.
Developers, despite not being able to reduce prices dramatically are being realistic, sellers of luxury homes are getting fair value prices, leaving buyers with a great long term asset, yield possibility and medium term capital appreciation of 20-40%. Competition of services offered continues to be the buzzword from buyers, with rental programs, solid property management and access to boats and beach clubs all being offered.
GOOD ADVICE
Today’s buyer is savvy, seeks value, is well informed on the range of property and is looking for representation from an agent that vets properties and developers carefully, represents quality developers with experience and balance sheets to match their bravado and require an agent prepared to do battle on their behalf with their interests at heart.
Agencies that are seen as a “sellers” agency listing all properties at the highest possible price and are not tough on ensuring that the stories told are the same as the plans being built will lose customers trust and find the Mexican standoff continuing into 2010.
Developers who have shown financial strength this year and have made solid construction progress will be signing deals this quarter and we may well find that the luxury market in Phuket, by end of Q1 2010, moves to an UNDER SUPPLY of new quality developments. This could well surprise many people.
I recommend buyers take advantage of this fluidity to lock in deals and negotiate payment terms and interior packages. The GFC has been the background of Phukets' musical chairs in 2009… as that song ceases into 2010 buyers will have to move quickly to make sure they are not left standing, or in this case, without a long term value priced roof over their head.
Any fool can buy expensive real estate (with a good bank manager); the smart money is well advised and is backing Phuket.
Nick Anthony is managing partner of Indigo Real Estate and a resident of Surin Beach since 1991. Indigo is a leading luxury property agency and enjoys a strong reputation for advising buyers. It was voted agency of the year in 2008 by the Thai Property Awards.
nick@indigoRE.com
www.indigoRE.com |
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Category : Real Estate
| By : admin |
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| 20 Aug 2009 01:09:40 pm |
| Jetstar Asia makes Singapore-Phuket comeback |
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Singapore (2009-08-20)
JETSTAR Asia will commence double-daily Singapore-Phuket services on December 15, marking the return of the carrier to Phuket after it suspended its four-weekly service in March last year due to weak demand.
The airline will also increase its existing daily Singapore-Manila services by an additional three weekly services to a total of 10 weekly return flights from October 25.
The new services add almost 6,000 and 7,000 weekly seats into and out of Singapore and Phuket respectively.
Yesterday, the airline announced its plans to expand Singapore services by 46 per cent over the next 12 months with an eye on services to mainland China. |
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Category : Phuket
| By : admin |
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| 20 Aug 2009 05:19:13 am |
| Phuket to also get non-stop Perth services |
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Thursday, 20 August 2009
After announcing non-stop services to Brisbane and Melbourne from Phuket earlier this week, Virgin Group Wednesday announced that Phuket will also receive its own direct Perth services.
Perth’s non-stop services to Phuket will operate twice weekly, but under the Pacific Blue branding. Earlier in the week Brisbane and Melbourne were connected with V Australia flights.
Operating under the Pacific Blue brand means that Phuket–Perth will receive its services on a B737-800 aircraft instead of the B777s that V Australia use, and services are expected to begin from the 14th of November this year.
“We are excited to be bringing Phuket, Thailand within easier reach for people in West Australia and as the only carrier operating non-stop return flights between Perth and Phuket,” said Brett Godfrey, Virgin Blue CEO.
Pacific Blue will operate Perth–Phuket services on Tuesdays and Saturdays with the return overnight flights to leave Phuket on Wednesdays and Sundays.
The carrier expects everyday lead in fares to start from AUD$399 one way on the internet.
To celebrate special launch fares of AUD$299 will be made available until the 26th of August, or until sold out, for travel between the 14th of November and 12th of December 2009, and again from the 26th of January to the 30th of March 2010. |
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Category : Phuket
| By : admin |
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