Phuket UltraVillas Push USD76 Million In Property Sales
Phuket's luxury real estate market has caught a USD76 million tailwind in trading with 14 “UltraVilla” properties sold in the first eight months of the year.
According to market research released today by consulting firm C9 Hotelworks, resales highlighted the sector, bolstered by Asian wealth which is leading the global storyboard.
A growing appetite by the rich and famous to “supersize” saw Natai's Beyond Villa trade for a reported USD24 million.
The profound 'failure to launch' during the past 24 months by developers has resulted in a reduced inventory of 77 new properties with a market value of USD329 million.
A switch effect into the secondary market has seen resales eclipse 83% of total volume.
C9's mid-year Luxury Villa Market Update reports that the upscale segment registered an average property value of USD5.4 million which had soared due to the rising impact of premium villa sizes.
Viewing broader trends in supply and demand, take up rates for off plan units remains soft with the possibility of product fatigue setting in. A lack of new entrants and fresh products which could induce demand are presently absent from the mix.
Growing investor confidence in hospitality projects was spilling over to the residential market and the stage is set for some “marquee” suspended projects to be restructured and re-enter the supply stream.
Research data indicates the geographic source of buyers is pragmatically shifting with the changing fortunes of the world's economies. A lead indicator has Chinese and Indian investors showing early signs of sales activity in Phuket.
Looking forward new planning restrictions are becoming a third party force for development, and the adoption of the recent Phuket Environmental Regulation and upcoming revision for land use to existing legislation is fast and furious.
A delicate balancing act between environmental impact, over development concerns and foreign investment remained challenging, but lower density luxury villas look to be well suited for the market conditions ahead.
To view the full report <link>http://www.c9hotelworks.com/downloads/Phuket-Luxury-Villa-Market-Update-September-2010.pdf*CLICK</link>