The Phuket resort condominium market picked up during the final quarter of last year, with a 57 percent year-on-year growth in sales according to new research from CBRE Thailand.

Developers are focusing on investors who are interested in rental income, the firm noted, with many projects bringing in a hotel management brands to convince prospective purchasers of the income potential.

The total completed supply of resort condominiums amounted to around 6,200 units with a further 4,500 units in the pipeline that are expected to be completed by 2018.

“This year we have seen some evidence of Chinese buyers buying individual units, a few Chinese investors buying in bulk up to ten units at a time, and a handful of Chinese developers developing joint venture projects,” the real estate firm reported.

The majority of buyers continue to be Western expatriates; the number of Chinese buyers is not yet significant but is expected to grow in the near future.

Going forward, newly launched units will continue to be small in size and have a low lump-sum price. As the market becomes more competitive and a rental guarantee becomes the norm, it is important that developers have a real ability to provide income through a management company; buyers prefer a hotel branded-management company.

CBRE said it has seen an increase level of resales at the upper end of the market. This is because there have been limited new launches in this segment and also because vendors of completed, older projects have become more realistic about achievable prices.

Source: Thailand Property