Mr. Nattha Kahapana, Director of Knight Frank Phuket revealed that Phuket condominium in dragon year has shown bright prospect, Kata and Karon will be the area where the enormous number of condominium supply will mushroom.
Knight Frank Thailand research has indicated that previously the majority of condominium supply were concentrated from Layan Beach down to Bang Tao Beach, Surin Beach, Laem Sing Beach and Kamala Beach (North Western Area), accounting for about 31% of the total supply, followed by the Mid Western Area, covering the area along Kalim Beach down to Patong Beach at the end, accounting for 28%. In the year of 2011, the new area for condominium has shifted to Kata and Karon Beach (South Western Area), accounting for 59% of the new supply in 2011, followed by the Mid Western Area, accounting for 38%, while there was only 3% located in the North Western Area.
Mr. Nattha shared his view that the developers have adjusted their plans in order to surge for the new demand. It was already known that the condominium buyers in Phuket previously were from English, Germany, Scandinavian as well as the Expatriates working in Singapore and Hong Kong since there is daily morning flight from Phuket to Hong Kong and Singapore, thus Phuket’s attracted many expatriates working in Singapore and Hong Kong. Recently, the emerging market is from Middle Eastern, Asian and Russian. The target group prefer Patong Beach due to its reputation of the nightlife as well as the 2-kilometer beach that runs the entire length of Patong. However, the majority of supply was in Kata due to the availability of land as well as the affordable land price which will be able to develop budget condominium for the emerging market.
Mr. Nattha also indicated that the transformation of guest demographics has affected the average length of stay and directly affected the condominium unit type since this group has shorter period of stay of about 4-5 days. Mostly, they travelled to Phuket as a couple or with their friends, rather than family. Thus, the preferable unit type of this target is the smaller unit size of studio and 1-bedroom unit, representing about 70% and 18% respectively, whereas before the majority of unit types was 2-bedroom unit, representing about 46%, followed by 1-bedroom and 3-bedroom, representing about 27% and 14%, respectively.
Mr. Nattha has concluded that the future condominium supply in Phuket in the dragon year will be in the area of Patong, Karon and Kata. Eden Oasis Phase 2 just launched recently, with 11 completed units, whereas Amari Residence Phuket will be the new residential development on Patong Beach. There will be 190 condominium units and 10 pool villa on the current site of the Amari Coral Beach Resort. However, the area which will attract the local in Phuket Town is another area which will be developed the condominium project for instance, Phumantra, the project will consist of 15 buildings and there will be only 9 units each building. There are many listed developers are in the process of negotiation for many pieces of land in Phuket such as Sansiri, Pruksa, LPN and etc.