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About Phuket, Thailand
Phuket lies off the west coast of Southern Thailand in the Andaman Sea, approximately 890km from Bangkok. It is Thailand's largest island at 550sq km, roughly the same size as Singapore, and is surrounded by many smaller islands that add a further 70 sq km to its total land area. Phuket is separated from the mainland by the Chong Pak Phra channel at its northernmost point, where a causeway connects the island to the mainland.
Phuket has quite a varied terrain. There are a few peaks above 500m and many of these are covered in lush jungle. The lowlands consist of rice paddies, plantations of rubber, pineapple and coconut as well as the only significant area of rainforest remaining on the island, which is now protected as Khao Phra Thaeo Park.
The most beautiful beaches are found on the West coast, separated by rocky coves and headlands. The east coast comprises limestone shoals with only a few sandy beaches while spectacular limestone islands adorn the horizon. Coral gardens full of exotic marine life dot the emerald waters surrounding the island.
Phuket is Asia's premier resort island with amazing natural beauty including idyllic beaches, amazing diving, first-class hotels, spas, magnificent golf courses, yacht marinas, an abundance of fine restaurants, vibrant nightlife and excellent shopping.
Phuket is Thailand's wealthiest province and also the jewel in the crown of Thailand's tourism industy, therefore receiving a high degree of protection and investment from the central government in Bangkok.
Phuket has one of the fastest growing property markets in the world with an increasing number of high quality projects by internationally-renowned real estate developers. Environmentally-friendly planning laws and height restrictions ensure that developments are low key and low density.
Rental returns on apartments and villas continue to remain high as more and more holidaymakers are opting for the privacy of a rental property over a hotel room. With visitor arrivals predicted to top 6 million in 2008, the demand for holiday rentals will continue to grow.
Infrastructure and services continue to improve at a fast pace. With two international standard hospitals on the island, quality healthcare is available at a fraction of the cost in the West.
Real estate development is booming in Phuket as foreign investors are acquiring vast areas of land for housing projects. A number of foreign developers are to set up companies with Thai business partners to build housing estates and residential projects on the resort island, which has entered what officials call the ''golden age of real estate development.''
''Foreigners highly admire the scenery and weather here,'' said Phuket governor Niran Kalayanamitr after talks with the Swedish firms. Other investors have also asked the province for approval for different real estate projects.
A group of Norwegian businessmen suggested a Phuket bay development project, with technology friendly to the marine environment. Investors from the Middle East have expressed interest in developing logistics for a free trade zone near the deep-sea port.
The increasing demand has boosted land prices in the resort provinces. Phuket land official Tanet Niyom said certain seaside areas, especially those near famous Patong beach, sell for up to 50 million baht a rai.
Prices are cheaper in Muang district, but they are still around eight million baht a rai. The value of land trading between 2006 and 2007 stood at 1.5 billion baht, according to the Phuket land office, but officials expect the value to go up to nearly five billion baht this year.
The rapid expansion of real estate development indicates that more foreigners want to stay for a longer period.
Foreign residents can be categorized into three groups _ those who want to live here permanently, those who are working here, and those who want to live here for longer periods than their visas specify, according to Sompot Nipakanon, assistant director of the Bangkok Phuket hospital.
He said foreigners also appreciated medical services in the island resort. Bangkok Phuket hospital currently serves up to 200,000 people a year, 30% of which are foreigners.
This market is linked to continued growth in high-end tourism, and plans to upgrade Phuket International Airport have been announced recently, with capacity to be almost doubled by 2010. Tourist arrivals grew from 2.4 million in 2005 to 4.7 million in 2007, almost doubling over two years. Roughly 20% of foreign tourists to Thailand in 2007 visited Phuket.
Infrastructural improvements have also helped to fuel demand for property. Phuket now has three existing marinas, with another three slated to be completed in the near future. The island’s six golf courses comprise 135 holes and include The Blue Canyon Country Club, the three-time host of the Johnnie Walker Classic. Also factors in buyers’ decisions to invest are the major retail facilities, multiple international schools and top-quality hospitals in Phuket.
In the hospitality sector, as many as ten luxury hotels (defined as those with ADRs of over THB 10,000) are expected to open by 2010-11, increasing the number of luxury hotel rooms by over 230%, from 340 currently to 1,145 at that time. The occupancy rate at selected upscale hotels in Phuket was 86% in Q1 2008, while average daily rates (ADR) increased 18% y-o-y. Concerns are whether 2009 performance can improve on that of 2008.
