The overall resort residential property market remains solid on values, but quiet in terms of new launches of both villa and condominium projects. Developers have focused on clearing inventory. Notable new launches include the Malaiwana condominiums and beach club, a luxury product part of a larger successful villa development with an average price of THB80 million (US$2.5 million), and the Vertigo Villa project on Surin beach with prices ranging from THB60-90 million (US$1.9-2.8 million). An important factor for the region has been that Q1 for 2012 was a record first quarter for tourist arrivals, with 594,999 domestic and 730,667 international passenger arrivals. Despite global economic uncertainty, tourism continued to grow with the expansion coming from Australia, China and Russia. Hotels benefited from the increase in arrivals with the average occupancy rates increasing to 82.7percent from 80.5percent in Q4 2011. Luxury and first-class hotels were the best performers in terms of occupancy. The average achieved room rate of these hotel grades were THB22,835 (US$723), (6.8percent year-on-year) and THB7,425 (US$235), (5percent year-on-year), respectively. There are currently 13,171 keys in 83 existing upscale hotels and 5,471 keys under construction in 30 hotels due for completion by 2014. According to Mr. David Simister, chairman of CBRE Thailand, “New supply is not confined to the West Coast, but shows a wider geographic footprint including Koh Siray which is located east of Phuket Town on a peninsula.” Extract taken from Property Report Asia on 16th July 2012 (By Matthew Booth)
Phuket Hotel Occupancy Increases
CBRE has just released its Phuket Property Report Q1 for 2012 which revealed that there are some significant changes in several sectors of the Phuket market.