LuxuryRealEstate.com Week in Review

Thailand's Crown Jewel

By Jen Schaefer   E-mail author

Post-tsunami Phuket is Better Than Ever

Picture a place with powdered-sugar beaches, forested hills and majestic rock formations rising from the sea, where the people are friendly and the weather is flawless. That place is Phuket—Thailand’s largest island and one of the world’s most alluring tropical destinations for buying luxury real estate. Phuket attracts an ever-increasing number of international citizens by providing the best of two worlds: a laid-back island paradise with plenty of rural areas and opportunities for relaxation, and a cosmopolitan hotspot with first-class resorts, five-star restaurants and lively nightlife.
 
In 2004, this peaceful oasis in the Andaman Sea was launched into the media spotlight after a deadly tsunami ravaged the shores of South Asia, including parts of Thailand. “Some of the news reports [following the tsunami] resulted in the widespread feeling that Phuket had suffered mass devastation, which was completely false,” says Nick Anthony, founder of Phuket-based Indigo Real Estate. In actuality, an estimated 80 percent of the destruction and death toll in Thailand occurred in Takuapa, a fishing district two hours' north of Phuket. “The damage to Phuket was light compared to that of many other places,” says Anthony. “Phuket received a solid whack in a few areas, but luckily, our wave was significantly diminished by the time it reached our shores.”

Fortunately, the damage to Phuket’s tourism and real estate industries was relatively light as well. More than a year after the tsunami, Phuket is stronger than ever, as demonstrated by the robust property prices. Following an initial post-tsunami slump, Anthony estimates that residential prices doubled in 2005, an increase of 15 to 20 percent over pre-tsunami prices. “The initial panic [in the aftermath of the tsunami] created buying opportunities for many people,” says Anthony. “There has never been resistance from sophisticated buyers, who continued to come from all over the world. Phuket remains one of the most attractive real estate investment markets on the planet.”

According to Anthony, people choose to buy a home in Phuket for a number of reasons. “Phuket offers an unbeatable combination of tropical lifestyle and large, affordable luxury residences,” he says. While a luxury home in Phuket can’t be purchased for pocket change, prices are significantly lower than in the United States, United Kingdom and other countries. A recent search of Indigo’s Phuket listings on LuxuryRealEstate.com found a brand-new, 6,402-square-foot pavilion (one of nine) offered at $575,000 USD; a 7,600-square-foot estate in a gated community offered at $700,000 USD; and a 5,498-square-foot penthouse in a community with a marina offered at $805,580 USD. Of course, those who want to spend more, can; the most expensive Phuket listing on LuxuryRealEstate.com was a $6,000,000 USD villa on a private promontory with seven bedrooms, nine baths and “smart” sound, lighting and security systems.

Another reason people are drawn to Phuket, says Anthony, is the lovely Thai-style architecture—stylish and functional design that usually features an elegant tapering roof, the use of bamboo and other local materials, high ceilings and beautiful craftsmanship. “Thai architecture emphasizes outdoor living to take advantage of the tropical surroundings,” he says. The grounds of Phuket’s luxury estates often boast a central terrace, swimming pool, lush gardens and ocean frontage.

Although the chances of another tsunami hitting South Asia are slim (the last tsunami was the result of the biggest earthquake in 200 years) and the damage to Phuket was relatively light, the Thai government is taking steps to safeguard the island against future natural disasters. “The tsunami reminded us of what the sea is capable of,” says Anthony. “Today we are smarter about early-warning systems, building near the water and making sure setbacks and building heights are carefully calibrated.”

Not content with restoring Phuket to its former glory, the Thai government is committed to making the island even better than it was before the tsunami. “The government has nearly finished all of the clean-up and has used the tsunami as an opportunity to make the beach areas smarter and to build new boulevards with improved landscaping,” says Anthony. “The beaches look like they did 20 years ago, as they received a large dollop of beautiful deep-ocean white sand. Come visit us and find out what the buzz is about!”

BUYING PROPERTY IN PHUKET
In Thailand, buying a condo is the easiest option available to non-Thais. The only restrictions are that no more than 49 percent of the units in a building may be sold to non-Thais, and that the funds used for the purchase must be remitted from abroad and recorded by a Thai bank.

Although Thai law prohibits non-Thais from owning land in Thailand, there are ways to structure a home purchase so that it complies with the law. Examples are by using a Thai nominee to purchase the property, or by forming a limited liability company. For more information, contact a Luxury Real Estate broker in Thailand by visiting LuxuryRealEstate.com/Asia.

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