QUARTERLY HIGHLIGHTS – CONDOMINIUMS & APARTMENTS
• The best selling project was the Entry-level development with an average selling price of THB 5 million for a 50-square meter unit.
• Two projects were launched in this quarter, one Entry-level and one Mid-range project with mostly one-bedroom type units.
• The buyer profile has changed this quarter with the first evidence of a few Chinese investors, a limited number of Thai investors, and a return of Western expatriates based in Asia.
Phuket resort condominium and apartment unit sales fell compared to last year. Forty percent of the units sold were one-bedroom units followed by studio units at thirty five percent. There was a 53.9% drop Y-o-Y in Russian arrivals to Thailand and this has hit the condominium and apartment sales. The total completed supply of resort condominiums amounted to around 5,200 units and there were over 3,000 units in the pipeline, which are expected to be completed within 2017.
We saw the first real evidence of Chinese (PRC) buyers starting to buy resort property condominium units. This number is significant in certain projects. A small number of Thai investors also purchased units with rental schemes. Western expatriate buyers are more cautious in their investment and prefer the resale market.
There have been resales in existing developments; however, prices are not publicly available. As the resort condominium competition has remained fierce, especially in the entry-level, the rental scheme has become an important marketing tool for developers. The increase in the number of condominium units in rental schemes will mean that condominiums will be competing with hotels for daily rate guests and the rental returns will depend on the overall performance of the Phuket hotel market. Going forward, we expect slow sales and limited project launches. Unit sizes will be smaller and have lower lump sum prices.
New Condominiums Launches in Q1 2015
The Emerald Nirvana Lux
Natural Park – Habitat
Ready to move in. Near Laguna Phuket. 2,5 MB per 32 sq.m. unit.