Luxury sector in Phuket and Samui expected to see foreign demand returning

Chandara - a private residence on Surin Beach in Phuket.

Thailand’s structural engineering design consultancy Warnes Associates believes that Phuket and   Samui luxury property markets will remain attractive to foreign investors in the coming years.

The company’s director Vanich Nopnirapath was confident that foreign demand would continue to drive property developers to launch more projects, especially in the high-end segment.

He said: “During this time of global economic instability, investment will continue to flow into emerging markets such as Thailand. Foreign buyers, who are looking for long-term investment, tend to put their money into property as it helps reduce risks from fluctuating currency exchange rates”.

Meanwhile, the high-end market and long-term investors such as hotel owners are now feeling less angst from domestic political instability.

According to Vanich, the company has managed to generate a total design fee revenue of THB100 million, 70 per cent of which come from residential and hotel projects in Phuket and Samui, while the rest comes from high-rise developments in Bangkok.

“The overall Phuket, Samui, and Bangkok markets have already reached maturity. We will see only  slight growth over the next five years,” he added.

As reported in Bangkok Post newspaper, the company will maintain its focus on its three original markets, particularly Phuket and Samui, where the markets are not so much competitive and prospects for high-end properties remain high.

Established in 1999, the company currently has six ongoing projects in Bangkok, three hotels and 20 private luxury residences including a 10,000-square-metre house for a European client from Dubai in Phuket. It also has ongoing hotel projects in India and Cambodia.