Where it’s hot?

Post - Articles by Davzd Wade, Tropical Homes

Clients often ask me where it is best to buy. Obviously, there is no one easy answer to that question, as it takes time to determine precisely what the client’s requirements are before offering advice. I also try to find out whether those requirements are likely to change.

It is surprising how often a client will approach me for a two-bedroom condominium on the west coast when – once they have given it more consideration – they will likely be more comfortable with a three-bedroom house near the international school in the near future.

Naturally, clients’ needs vary and a homebuyer’s priorities may differ considerably from those of an investor, who is primarily interested in capital growth, rental returns or both. What they both generally have in common is a desire for a sound investment.

In my last column I gave my reasons why I thought 2006 would be a great year for Phuket. From the emails I received back it is clear that so far this year you are in agreement.

It has been a bumper start. So, if Phuket is hot – and it clearly is, in more ways than one – where is the latest, and hottest, hotspot? Certainly, if the area of most activity is anything to go by, then Layan Beach has to be high up the hotspot hit list.

Firstly, the area is starting from scratch. No eyesores to demolish. It might appear much of the area is under construction, but once that construction is complete it will be brand spanking new.

Secondly, its proximity to the airport and location next to the expensive Laguna and Bang Tao areas, also make it appealing. And finally, because of the huge investment that is taking place there.

Grand Hyatt has bought over 130 rai to the south of the creek and other larger developers including Laguna Residences have bought large chunks of land there.

I had a meeting this week with Robert Yai, the inspiration and developer behind the much talked about Layan Marina, and he has confirmed work will begin soon on the marina basin. So great has been the enthusiasm behind this project that eight investors have already placed deposits for condominiums without even knowing the final prices.

Certainly a west coast marina will bring the boating fraternity together with all the usual up-market paraphernalia that goes with them. This has to be good for Layan.

The hillside developments overlooking Layan Beach compare favourably with the rest of the island; from the attractively priced developments like Layan Sunset, which are available offplan from as little as eight million baht to the luxurious Villas Overlooking Layan that start from 26 million baht.

Both have great views over the west coast. Completed developments like Layan Estate, despite having no sea view, have also been great successes and are now attracting substantial premiums.

Is there a downside? I was making small talk with a taxi driver on the way home from the airport last week and I asked him how long he had lived in Phuket.

He answered he had been here all his life and, as I guessed he was on the wrong side of fifty, I enquired as to what he thought of the huge changes he had seen on the island. He replied “good for business, bad for countryside.”

He was referring to the development of the island and all that goes with it. Development is inevitable. What matters is good development and that is where Layan should benefit in the future.

The lessons should have been learned from the mistakes of the past. Fortunately most of the developers on Phuket live here and genuinely care about the island – carefully considering the impact their development will make.

Incidentally, research just published by currency exchange specialist, Foreign Currency Direct, found Thailand, Hong Kong and the US to be the top three destinations for Brits buying property overseas in 2005.

Confirming my view in my earlier column, Europe as a whole came tenth in the survey. Thailand is on the rise, and Phuket is leading the way.

By David Wade, Tropical Homes
(2006-09-04 15:23:59)