The island of Phuket has proven to be a fantastic place to rent or buy property within the last few decades. Dozens of properties are popping up every week as the popular tourist destination continues to grow and the city expands. There are so many different price ranges for the apartments that you won’t have trouble finding one out of your budget whether you’ve got a lot of money to spend or just a little bit.
Phuket
as a real estate market is very special as a large majority of the shares have
been taken over by foreign investors. Due to this, many companies have built
these condominiums, villas, and apartments to tailor to the foreign market
rather than locals due to a number of reasons such as foreigners entering the
country with a lot more money than the locals would have. A low-interest rate
is another factor for the popularity of the Phuket real estate market.
When the
pandemic hit the housing market was greatly affected. An estimated 90% of
buyers were seen to be from countries such as Hong Kong, China, and Singapore dried up overnight.
It’s hard to know when prices and tourists will return to normal as the virus
rampages throughout the world and while Thailand is now on its 3rd
lockdown which sees no immediate end in sight.
Those
who are overseas may find Phuket to be something of a paradise with affordable
housing and all-around cheap utilities compared to a number of other countries.
Many rich businessmen from places like Hong Kong and Singapore have made the decision to move some or all of their families to the island paradise in order
to enjoy a stress-free time in the jungle while managing to save thousands of
dollars from staying in their home country.
Overall,
due to current circumstances, there are a number of different factors as to why
investing in a property in Phuket may be a beneficial idea come 5 or 10 years
in the future. First off, prices of property will see a sharp decrease due to
the lack of purchases within the market; property owners currently have no idea
when the return of tourists will be due to the craziness of the pandemic
therefore they will likely choose to reduce the buying price by a good amount.
Since the first quarter of 2020, the housing market has steadily decreased and
there are few buyers in the market.
Once the
pandemic has run its course there is little worry that tourists will come
flocking back in the tens of thousands. Buying a property on the island and
doing a little amount of work to upkeep the place will pay dividends in the
near future with future tourists looking to rent out a condominium or villa for
the duration of their stay. Of course, it is understandable to be tentative and
find yourself hesitant to invest in what looks like an uncertain return.
However, these kinds of things only come once in a century. As generally known,
more risk equates to more return, those who take these kinds of risks will
avoid the doubt of knowing whether or not it was worth it in the end. A market
always returns to its original state regardless of a pandemic or not, so takes time to think about what an investment in Phuket may give.
Phuket
will not cease to be a tourist destination after COVID, and there are plans for
the island to be the first place to open up for international travel later this
year. In fact, as of now, there has been a special visa program established for
those who are willing enough to do 2-week quarantine in order to experience the
country. Regardless, here are just a few long-term rental properties available
on the scenic island of Phuket.
First up
we have THE SCENE Condominium located in Kathu which is neighboring Central
Festival mall, Prince of Songkhla University, and a few shops. With a nice
mountain view, it’s hard to argue against staying at this place! Furthermore,
the studio contains a sizable kitchen including all the basic amenities needed
to cook up a good meal, a bathroom with everything you need including, and both
outdoor and indoor rooms. The overall design of the place is quite basic for
Thai condominium standards, with bright white colors dominating the walls and
floors with not much else to mention. The studio is 30 sqm and fully furnished
with kitchen utensils, a fitness center, a swimming pool, and more. The price to
rent is 10,000 baht per month or about 333 baht per square meter and comes with
1 bedroom and bathroom.
Part of
the Palm Breeze Resort Project in the Rawai area of Phuket, the Palm Breeze
apartment is available for 15,000 baht a month and comes with an outstanding
number of features and sizes for the relatively little amount you have to pay. Located
right in the center of the island, Rawai beach is a short distance from the
condo with an impressive view of the Andaman Sea that is accompanied by shops,
restaurants, and convenience stores in the vicinity. There are many different
room types that will suit couples, families, or individual people. The whole
Resort Project is almost like its own village, containing a gym, swimming pool,
Jacuzzi, tennis court, and much more. Not to mention, the place is secured and
surveyed 24 hours a day meaning you are at the utmost safety when in the
resort, however, that does not mean that Rawai or Phuket are dangerous areas by
any means.
Containing
a very homely interior, this two-bedroom apartment provides a nice view of the
expansive pool available to swim in for all residents. Everything available in
this complex is of sufficient size and will not be of an issue when sharing with
up to four people. Once again, this condo is very close to the beach and is
also nearing a golf course, waterpark and airport!
The Bel
Air Panwa Resort is a nice quaint area near the cliffs on Phuket. The difference in location is apparent compared to other properties as it is tucked
away a bit further from other shops and convenience stores, however, due to the
size of Phuket is only a short drive rather than a short walk. Prices for a 3
bedroom at the resort has heavily decreased in part due to the pandemic.
During the 2nd half of 2018, the price per square meter was 212
baht, fast forward two years later and the price has decreased to 164 baht/sqm.
There is no doubt that it has continued to decrease due to the lack of
renters/buyers in the area.
The
Tinidee Golf Resort is a golf lover’s dream getaway. Located in the mountains
of Phuket, Tinidee has created a paradise amongst paradise with some of the
most beautiful views available in the whole of Thailand allowing you to relax
and recuperate from whatever stresses you’ve accumulated during the day.
Forgetting about the external environment of the resort, looking into the rooms
and suites shows fantastic attention to detail, blending in perfectly with the
tropical environment. If you’re hungry, there are two superb restaurants with
dozens of food options available at any time. Moving on to the main attraction of
the resort, it is home to not one, but two 18-hole championship golf courses
that stretch as far as the eye can see. Last but not least, the resort is
close to a number of Phuket’s most famous locales including Patong Beach,
Bangla Road and Phuket Fantasea.
Regarding
the interiors of the locale, the apartments are two bedrooms once again. With a
living area going out to a scenic balcony, black obelisk-like kitchen surfaces, and all the amenities at your disposal, it’s hard to pass this apartment up.
There’s also a sauna, gym, garden and much more. The design of the rooms are
second to none, providing a cozy experience fit with a beautiful leather couch
that will lull you to sleep if you’re not careful!
Moving
on, we have the Pixels Cape Panwa Condominium. Located right on the beachfront,
the place looks like a nice place to relax if you’re looking to maximize the
enjoyment you get out of being on the beach.
The scenic view is punctuated by the gorgeous sunny skies of Thailand
and the far-away mountains seen on the horizon. If you don’t like swimming in
the ocean, the condominium provides a nice pool with a number of relaxation
zones to get your fix of the water without the fear of jellyfish or any other
external annoyances.
The
interiors of the condo are quite simple, they are lacking a lot of basic
amenities that the aforementioned places have such as a kitchen, TV, and
microwave. However, being in Phuket, it’s very easy to go outside and find food
and entertainment. The minimum rental duration for this place is 3 months and
will cost you around 10,000 baht a month for a 1 bedroom, 43 square meter
apartment.
Price
trends aren’t available for this specific apartment, other than the value of
415 baht/sqm that was available in the 2nd half of 2020, it is hard
to imagine it’s changed significantly since then due to little economic
movement within the country of Thailand. If you were to buy the 1 bedroom
apartment you would gain a retail yield of 10.78% which is very high.
If you’re
looking for a budget option, Supalai Park @ Downtown is a great condominium
that sacrifices little in the way of quality for a standard experience that is
sure to satisfy. Renting a 30 square meter, 1 bedroom apartment will cost you
around 6,500 baht a month and comes with all the basic amenities such as a TV,
fridge, microwave, stove, and more. The design of the place is quite basic and
lacks character, but for the price, you pay it’s hard to complain. In terms of
outside relaxation areas, there is a small swimming pool, fitness area which seems
to be standard for most condominiums in Thailand.
The
price/sqm trend of this particular apartment has been volatile with a dip in
late 2016 to a sudden rise in early 2017 going from 254 baht/sqm to 263
baht/sqm. With a lack of data, it is hard to predict where it will have trended
to next. Regarding the rental yield, as of 2016, it was about 7.05% for a 1
bedroom unit which is considered on the upper end of profitable rental yields.
Moving
on to the cheapest option on this list, and probably one of the cheapest
options you will find on the island on Phuket, we have the Zcape 3 Condominium
by developer Tri Property. Completed in 2014 and containing 471 units, the
complex may have you mistaken into thinking it costs a lot more than it
actually is! Surprisingly, the building itself and the area surrounding it are
magnificently well-kept, looking brand new even as it reaches 7 years since
completion. Moving on to the interior we see a sizable apartment with most
amenities intact excluding stove or microwave. Furthermore, the place contains
a fitness center and a library.
Overall,
the price/sqm has been trending down, seeing a near 50 baht decrease from 428
baht/sqm to 379 baht/sqm from the 1st half of 2016 to the 2nd
half of 2017.
Overall,
due to the quality of real estate in the area, Phuket is a prime place to stay
or invest in some property. Due to the pandemic, the price of all things real
estate has gone down and is a prime investment if one has the money to do so. As
mentioned before, taking a risk on the real estate market in any location right
now could reap massive rewards as the world eventually resumes normal
operations and people begin to embrace worldwide travel once again. Before the
pandemic hit, Thailand was one of the most popular tourist destinations in the
world and was increasing exponentially, so keep that in mind when making future
investments!
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