Phuket, Post Tsunami

By: Dan Wallace

With the negative media coverage that wrongly portrayed the post tsunami situation on the island of Phuket, people assumed that the property industry would crash, prices would fall and demand dwindle. Quite the contrary has happened.

The reality is just 5% of the coastline was damaged and educated investors realized it was a freak of nature and an unprecedented natural occurrence. In 2005 prices remained stable and in 2006 they continued to grow again on the same level as pre-tsunami - 100% every three years (according to local property industry sources). The statistics are almost identical to that of Bali after the bombing. In the longer term there is a lot more potential in Phuket than Bali to, as there are more facilities and choices of accommodation. Phuket is more advanced in terms of getting there than Bali too.

The market in Phuket is very buoyant and demand for luxury holidays on the island is growing significantly. Lured by the attraction of a strong economy, Phuket being the wealthiest province in Thailand, an International airport that has direct flights to Australia, Hong Kong, Singapore, Kuala Lumpur, Indonesia and Europe and an abundance of beautiful natural features, people from all over the world are renting out lavish dream properties, which cater for their every need.

Marinas, world class golfing and excellent shopping all adds to appeal of this island. Hong Kong and European markets continue to drive demand; however there is a strong increase in American visitors. Positive images of the booming property market are filtering through the worlds media, combined with the coverage of Phuket just after the tsunami means that Phuket is firmly on the world map.

Currently demand for luxury villas is equally mixed between families, honeymooning couples, and retirees, however the older age group is set to become the most significant market in the industry and this is being shown with new developments centered around golf courses and marinas, with the East coast in particular seeing a lot of development as this is the site of the Royal Phuket Marina. The developments in this area are set to rival that of popular resorts in Spain, popular with the older age group, not just in terms of excellent amenities and accommodation but the relative costs too. Why rent out a hotel room in Spain when you can rent out a luxury secluded villa in Phuket?!

Property style various tremendously, Europeans in particular are fond of the traditional look with quality local natural finishes, traditional Thai roof designs, but like incorporating this with every modern amenity one could desire. Other properties offer sleek aluminum and glass finishes giving an ultra modern feel. From Phuket's north-west coast to the length of the east coast, private villa estates are increasing in popularity, with international variations of villa design attracting a discerning guest. There is a desire to have a holiday of a lifetime in a unique property, totally distinguishable from everything else and Phuket has this in abundance.

Each beach resort in Phuket has it's own distinctive atmosphere which is reflected in the property design. As 2006 comes to an end, property developments of note drawing to a close are around Cape Yamu on the east coast and another upcoming area, Chalong Bay at the North East point again demonstrating the incredible choice for visitors to have an incredible Phuket vacation.

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