The Allan Zeman Effect: Second Act
There is little doubt that the effect Allan Zeman has had on Phuket remains great bedside reading for the success-oriented – counting multi-million dollar villa sales beats counting sheep any day (or night).
Zeman's play is hard to fault especially when some are wondering if Phuket has lost some of its glittering shine, down on Millionaires Mile.
Andara's second act, the 13 villa ultra estate tagged as Signature, launched some six months ago.
Since then, five properties have been sold, and two more are on offer.
What's more notable is that pricing remains strong with units ranging from US$6.6 to 8.2 million.
In a sector which typically sees average monthly take-up rates at .15 to .25 (meaning it takes four to six months to trade just one villa) Andara has again set the gold standard of performance.
Looking at the historical resales of Andara villas over the past two years, there have been five secondary transactions and all traded at well over 100 per cent of the acquisition price. Calculating the cash on cash return on purchase, annual appreciation for total resales is up over 30 per cent. Any investor in today's market who can get that return, please take a place at the front of the line.
I recall, in the early days of the initial project launch, speaking to Allan about his philosophy when developing property and he had the poignant saying "always leave money on the table for the next buyer." That coda has proven successful in retaining clients and keeping forward momentum.
Phuket is a small place and the social circles of high net worth individuals from places like Hong Kong is amazingly small. Whispers about money made or lost can spread like wildfire and the ultimate marketing tools remain word of mouth and satisfied investors.
Added to the mix has been the attached hospitality-led product 'the residences'. Positioned more as an investment return and usage model, there have been two resales within the past year, with gains in double digits.
Bringing in respected hotelier Daniel Meury, after a long stint at the well known Chedi (now Surin), resort turned out to fit like a glove, in terms of the client mix and market experience. Rental pool revenue for the first quarter in 2012 achieved a remarkable growth factor of 50 per cent over the same period last year.
Twinning 'Brand Phuket' and Allan Zeman has proved that the island continues to be a draw card for the rich and famous. High net worth individuals are still in the rink and the mid-term report card on Andara Signature is looking to deliver its promise.
And as for the Hong Kong entrepreneur's commitment to the local real estate trade, he's opting to build up the project irrespective of sales, with a timeline of 24-30 months to completion. One can only wonder what will be the next Andara-inspired project in Phuket?