Few places can match the combination of natural beauty and the strategic position of Phuket. Once a quiet fishing village island in Thailand’s southern region, the island has transformed itself over Asia’s top leisure destinations over the past five decades. Its location in Southeast Asia makes it an accessible holiday choice for travelers from the Middle East, Europe, and the rest of Asia.
Phuket is Thailand’s largest island and is one of the world’s most attractive destinations. There are over 1,800 hotels and resorts in the entire province. Its pristine beaches are home to some 400,000 residents, but they welcome over 14 million holiday visitors by the end of 2018. Despite the ongoing pandemic, travel experts are touting the country as one of the safest destinations to visit once restrictions ease.
There are plenty of reasons to visit Phuket. It has miles-long stretches of coastline overlooking the crystal-clear Andaman sea. Diving enthusiasts can’t resist the stunning underwater beauty around the Similan Islands. The bustling commercial activity brings urban conveniences with a laid-back, tropical setting. It is easy to understand why tourists flock to the island each year, and why some never leave.
Investing in thriving housing developments can be an excellent option for people who want to set roots in Phuket. Buying property can take advantage of its rising popularity and desirability as one of the world’s safest and most attractive destinations.
If you are looking for promising real estate destinations to invest in, here are several reasons why Phuket should be at the top of your list:
Affordability of property prices
Property prices in Phuket are one of the main reasons people want to invest. The average prices of condominiums ranged from 80,000 to 130,000 THB per square meter or 2,500 to 4,100 USD. In stark contrast, the cheapest one-bedroom apartment in Singapore will cost at least 12,000 USD per square meter. Thailand also does not impose taxes on foreign buyers, making it an enticing destination for international investors.
Some developers also offer timeshare properties. These structures allow you to invest in rental properties that earn passive income while giving you free use for a few weeks each year, giving you the best of both leisure and investment in one property product.
The infrastructure of Phuket has transformed dramatically over the past 15 years. A light railway transit connecting the international airport to the resort areas promises to cut travel time and decrease congestion on the highways. Phuket has also established various commercial centers, health facilities, and international schools that cater to the increasing number of visitors and the growing number of people who call the island home.
Accessibility to urban centers
Phuket is only a one hour flight away from Bangkok, an international hub for travelers from Europe and the Middle East. Many Asian countries already offer direct flights to Phuket’s bustling international airport, making the island an incredibly attractive choice for a quick getaway.
Rising demand for rental properties
Tourism has not only benefited hotel properties but other types of short-term housing rentals as well. High-end condominiums and villas are attractive because of their high return on investments, with some developments achieving a 6-7% annual yield. According to a report from the Bangkok Post, the supply of new condominiums grew as much as 30% in 2019 from the previous year in response to increasing demand from foreign investors from China, Singapore, and Hong Kong.
Even with plenty of supply, many investors are showing confidence in the future potential of Phuket. According to Colliers International, of the over 16,000 new condo units launched that year, more than 70% were already sold.
All these reasons are driving the demand for investment-worthy housing developments on the island. Buying property in Phuket can be a lucrative way to grow your wealth with long-term gains on passive rental income. The relatively affordable prices and strategic development around the island make Phuket not only an attractive place to invest but potentially a great place to call home.
Are you looking to invest in real estate in Phuket? Visit our website to see our award-winning designs and sustainable living concepts set in the island’s most sought-after residential development. Contact us to learn more.