Buying a Slice of Paradise

How many visitors to Phuket can say that at sometime they haven't found themselves seduced by feel by island's good factor, while watching the amber glow of thesetting sun with the comforter a cold beer and have thought "I like this and want a part of it".

Phuket still has an emerging villa rental market. One of its early success stories was the Amanpuri Villas, built in the early 1990s, the villas went on the market at US$1.5million, and quickly sold-out. Although they are rarely ever offered for sale, the asking price would now be in excess of US$3million. Constantly booked-up, the nightly rental charge for a 3 bedroom Amanpuri Villa is in excess of US$ 3,000 and for a 6 bedroom villa, more than US$ 6,000. Today buyers are looking for their own Amanpuri, but perhaps one that is more affordable. Property prices in Phuket, unlike those in Bangkok, have clearly not been effected by the Asian economic crisis.

It is easy to see why Phuket was voted "The World's Favourite Island" in Conde Nast Travellers Readers Poll 1999. A lush tropical environment; direct international flight from major Southeast Asian hubs complimented by direct charter flights from Europe; a Mecca for golf and yachting enthusiast from around the world proving to magnet to seriously rich; some finest restaurants and hotels in the region and; not to be overlooked it does have International Hospitals which are medical care of the high quality should it be needed; the communications infrasture which allows the business on holiday to stay in touch by fax, phone or e-mail. For those considering re-locating to Phuket with families of small children there are International Schools on the island. In short Phuket offers a self contained quality cosmopolitan lifestyle.

Under existing Thai law a foreigner cannot hold the Title Deed to land however they can lease it for periods of 30 years which can be renewed twice, effectively creating a 90 year leasehold, a similar system to that which exists in the UK. The other option for a foreigner is to register a company in Thailand with a Thai partner. It should be remembered that a foreigner is only allowed to hold a maximum of 49% shareholding in the company, so chose your partner carefully. The company could buy and register the land and lease it to the foreigner to build their dream home.

" The biggest problem in Thailand is property title." Said Colin Mackay, director of Hilltop Group Ltd in Phuket, "Everyone is looking for what is known as Title Three or Title Four, which gives real ownership with a clear definition of what is your property. Lesser titles of which there numerous could prevent the owner of the land from building on it because, for example, a food hawker claims that they have run a noodle stall there long before you ever heard of Phuket. Before you buy invest in a good lawyer to check the property title. If that's is good everything else from a legal point of view will be fine."

Another factor to consider when looking for a villa is to examine the materials that have or will be used in the construction. The romantic sea-facing villa will be subject to corrosion from the salty sea air a wrong choice by the developer could result in higher maintenance costs in the future.

Buying property is all about location, location and location. Sceptics have often said of Phuket that it is an island with two faces, the north is about luxury and the south is about sex. An unfair oversimplification overlooking the beauty of Kata, Nai Harn Bay and Cape Panwa on the southern end of the island.

So what properties are currently on the market and what factors should be considered when thinking about a buying decision?

Laguna Phuket, is a fully integrated resort just 20 minutes from Phuket International Airport and 25 minutes from Phuket town. In additional to the five international hotels there are also three residential options available at Banyan Tree, Laguna Home Sites and Allamanda Suites.

Banyan Tree was designed with total privacy in mind. The two bedroom homes form a unique self-contained community. Built in a distinctive Thai architectural style with large living and entertainment areas, private swimming pool out door Jacuzzi and two lavishly furnished bedrooms. The interiors have been finished in teak and marble, with elegant handcrafted furnishings and exquisite Jim Thompson fabric. Possible best described as a luxurious two-bedroom bungalow offering a smart casual lifestyle. They have a price tag of B25 million and the owner has 60 days use of the property plus a guaranteed return on investment from rental income of 10% for the first two years. Additional benefits include membership of the Banyan Tree Golf Club and access to all the Laguna Phuket facilities on the 600-acre site.

Allamanda Suites offer a one and two bedroom condominium option. The one bedroom suite has en-suite bathroom, living room kitchenette and separate dinning area with a price tag of B5.4million. The two-bedroom option offers similar facilities at B5.6million. This option would be ideal for a foreigner buyer as the ownership is by leasehold with no additional complications under Thai Law. Again buyers have 60 days use of their property plus a guaranteed return on their investment of 10%

The third option at Laguna Phuket is one of 74 home sites that range from 1,300-2,000 sq. m and B2-5 million. Buyers are advised to follow a theme with the construction design of the home to ensure continuity throughout the estate. The benefits to a buyer is the close proximity to Laguna Phuket while enjoying the privacy of the secluded golf course location under the watchful eye of a professional security service. A foreigner buyer considering this option would have to go through the process of forming a company in Thailand that could legally own the land.

A single story two-bedroom house with beachfront and swimming pool at Phang Na is currently on the market for B6,250,000. Located 10 km north of Phuket (about 20km from the Airport) this house is a modern adaptation of the traditional Thai style house; built entirely of wood and raised some five feet above the ground on stone columns. It is the first on five similar houses being built on the site. Ideal for someone seeking to relocate to the south but maintenance and security would be a concern if a potential buyer were looking to rent it out when not in residence.

Located in Rawai on the less developed southern end of Phuket, Pondok Kupu Kupu is a small estate of five very unique custom built homes in the Indonesian cluster style, whilst incorporating many architectural and decorative features of the North Thai style. Land plots are 625 sq. m with the houses covering a total area of 280 sq. m. Prices range from B5.6-9.5 M. There is a monthly maintenance fee of B4,500 for gardening and caretaker services, refuse collection, pest control spray; electricity for water pumps, swimming pool and wine cellar and; general maintenance of roadways and communal areas.

Set in a secluded location on the hillside above Patong with panoramic views over the village and beyond is Baan Nam Yen with nine large houses each on a land plot of over 1 rai. The developer is suggesting a choice of two Asian tropical designs for the houses, with the option for buyers to customize to suit the buyers individual needs. Price range from B3.5-11.7 million.

On the southeastern shores of Phuket, Vanich Bayfront Ville is a 50 villa development set on an estate of 26 rai. Buyers have a choice of nine different architectural styles each with three bedrooms, three bathrooms, living room, family room, work room, kitchen and dining room. In addition there is a clubhouse with sports and fitness facilities offering special rates for villa owners. It claims to be one of the best location on Phuket to watch the setting sun. Prices range from B7.94-29.39 million.

Baan Kata is one of the most successful villa developments on Kata Beach to date. The first phase of the development was to build 6 villas all of which have been sold. The current phase of another five villas is due for completion over the next 12 months. Two designs styles are available, an Ocean Front Villa of 625 sq m on a 1,220 sq m plot at US$ 390,000 and the slightly smaller Seaview Villa of 590 sq. m on a 1,050 sqm site costing US$ 345,000.

The newest development on Kata Beach is Katamanda development consisting of 47 plots set in tropical landscape overlooking the Andaman Sea. Prices range from US$120,000 up to US$500,000. A choice of three Asian-influenced Villa designs are being offered . Complete fully fitted land and villa packages range from US$350,000 up to US$1,000,000.

The Views on Ao Chalong are an interesting design themed on a Buddhist temple accommodation with three individual buildings including a large open living area or Sala linked by walk ways. Either 3 or 4 Bedrooms each with an ensuit bathroom, living room, sala and maids room. All the wooden furnishing are teak and the finish is of a high quality. With a beach front these have an asking price of B25 million.

The Moorings in the same area with a more conventionally designed 2 storey, 3 bedroom, 3 bathroom plus maids accommodation has an asking price of B15 million.

Baan Thai Cherng Lai is being built by Southern Land Development, who were also responsible for the construction on the Chedi Resort and Amanpuri private villas. The essence of the project is the low density of villas, a blending of traditional Thai style village and design enhanced with the necessity demanded by the international traveller. The Villa offer 1,199 sq. m with 2 master suites, 2 guest bed rooms dining room, living pavilion, private swimming pool with deck and open living area, Thai sala and kitchen with servant facilities. The Resort House has 360-530 sq. m the larger with a master suite and the smaller with two guest-bedrooms. Teakwood is used throughout including doors & windows.

Baan Benjamas on Patong Beach offer Mediterranean style two storey single and town houses. Affordable less luxurious properties have Gardena for B4.492 million and the Del Mar for B4.99 million with the Town House at just B2.5 million.

Panwa-Bali is set on the slope of Cape Panwa hillside overlooking Chalong Bay with the choice of 15 private homes at B9.95 million and condominiums for B5.65 million.

There is wide choice of property available in Phuket. Making the next move to convert a dream into reality may be more than just a small step, rather a bold leap into the future.

Phuket Land Ltd, 115/1 Kalim, Patong, Kathu, Phuket 83150 (66-76-340207, fax 66-76-340692, william@phuketland.com).

Baan Kata and The Gallery Grill,3/2 Moo 2, Patak Rd, Kata Beach, Phuket 83100, (66-76-330123, fax 66-76-330482, Bart@baankata.com).
Baan Benjamas Co Ltd, 169/30 Soi San Sabai, Rad U-Thid Rd, Patong Beach, Katu, Phuket 83150, (66-76-344343, fax 66-76-340273, pppropt@loxinfo.co.th).
Baan Thai Cherng-Lay Management Co Ltd, 33/4 Moo 5, Tambon Vichit, Phuket 83000, (66-76-270172, fax 66-76-325028, jvmcons@samart.co.th).
Phuket Landvest, (info@phuketrealestate.com)
Katamanda, 2/29 Moo 2, Patak Rd, Kata Phuket 83100 (Tel/fax 66-76-284086, sales@katamanda.com).