SECTION 5: THE DIFFERENT TYPES OF PHUKET PROPERTY
In an effort to help buyers better identify their ideal property, Thai Residential have classified the different types of available properties in Phuket.
While the choice is extensive, the categorisation is perhaps somewhat subjective. Different property types can be difficult to pigeonhole, or they may even overlap with other categories. The price of a given property in one category may more closely match prices in either more or less expensive classifications. The categorisation and the prices below are thus purely for guidance purposes.
Low-End Condominiums in Phuket
The low-end condominium sector is appealing to anyone who just wants a “base” in Phuket. These are generally smaller and not intended to compete with better-located, family developments. They might, nevertheless, still be convenient to shops or beaches, and modern enough to use as either a home or a rental unit.
These condos can offer remarkable value for money, especially for foreigners on a budget. A number of freehold condominium developments on the island offer studios or one bedroom units that can sell for under THB 2 million. These are predominantly in the central valley area, Chalong, or in Phuket Town.
Apartments
Although the majority of new builds in Phuket are condominium projects, there are those which offer only apartment ownership. They may look identical on the surface, but condos and apartments are very different in both structure and law. Whereas a freehold condominium gives the foreign buyer permanent ownership of the unit, apartments are sold on a leasehold basis only. (See more on leasehold property below.)
Some foreign buyers may be attracted by an apartment because it meets or satisfies their requirements. But these should probably be viewed as alternatives to leasehold condominiums, as both the prices and ownership structure are comparable.
Bungalow Estates
The word “bungalow” originates in the Bengal region of eastern India (just across the Andaman Sea from Phuket). A Bengali style house typically consisted of a small one story structure with a veranda. This housing concept is now used the world over, especially in Thailand.
Bungalow style houses today are varied in form, and can range in price from THB 3 million to THB 7 million (sometimes more).
The last thirty years have seen an increasing number of bungalow constructions. These are usually situated in rural areas, or in the vicinity of Phuket Town. Some are collections of similarly styled houses in small estate-like developments, while newer up-market bungalow developments can also be found in popular tourists areas, offering sea views and unique design concepts.
Depending on the way the development or collection of homes is structured, some of these bungalows may be available for sale to foreigners.
Phuket Townhouses or Townhomes
These properties are quite common in Phuket’s local real estate market. They are found mostly in the suburbs surrounding Phuket Town, as well as along most major roads on the island. While prices may vary, they can start as low as THB 3 – 4 million.
A townhouse is usually a terraced structure with two, three or more stories. Those that face a main road are often referred to as “shophouses” because they typically have a shop on the ground floor, with accommodation on the upper floor(s). (Unfortunately, some areas have seen shophouse developments go unoccupied, a consequence of over development in this sector during the last two decades.) Today, this has been addressed by the appearance of cannabis dispensaries, which seems to have taken up a lot of the units that have been sitting empty for years.
Foreign buyers are likely to be more interested in a townhouse, built with the foreign market in mind. These are far more luxurious, and the island is dotted with such projects. Some are close to international schools, some are close to the beach, and some even have stunning sea views. Some newer townhouse developments are extremely stylish and those in prime areas can go as high as THB 40 million.
Resort Style Condominiums
Freehold condominiums represent a sizeable percentage of all property units purchased by foreigners in Phuket. These medium-to-high end condominiums are usually priced between THB 3 million and THB 15 million, depending on quality, location, floor space, etc. They tend to offer facilities, such as a gymnasium and communal swimming pool.
By offering a guaranteed income on the unit for the first few years, they also attract buyers looking for an investment opportunity, rather than a place to live. As a result, many condo owners do not live in Phuket, and visit infrequently.
Occasionally these developments also have luxury condos for sale. In some cases these are units closer to the beach, or possibly a duplex (or even a penthouse), offering the owner the feel of a spacious villa, but with the option to buy freehold.
Low and High Density Estate Houses
Extremely popular with Thais, housing estates are usually gated communities, located further inland or in areas where land is more plentiful. Three-bedroom houses with small gardens range from THB 4 million to THB 7 million.
There are now dozens of estate developments in Phuket, targeting the growing middle-class Thai population, which also includes foreigners with Thai wives and families. Some developments are lower-density areas with larger properties and larger gardens, and prices there might start at THB 10 million or above.
Phuket’s Luxury Freehold & Penthouse Condominiums
Property developers understand the frustration foreigners face by not being able to own land legally in their own name. They have responded by creating freehold luxury condominiums.
Most luxury condominiums have stunning sea views, are situated in prime areas, and have all the ingredients required by affluent buyers with money to spend. These luxury high end condominiums are in great demand, and prices can be in excess of THB 80 million. Some of them even have the feel of a villa, offering the spacious high ceiling living areas of private villas, and some may even have a garden and private swimming pool. They offer owners the feel of a spacious landed property, but with the option to own the unit as a foreign freehold.
The build quality is usually excellent, and the resorts are run by professional management companies. And as these luxury condominiums are often apart of a resort-style complex, they also offer a range of common area facilities, such as gymnasium, restaurants and communal pool.
Phuket’s Marina Living
Thai Residential categorise these properties as a separate group because they attract a different type of buyer. The properties in these communities range from condominiums to townhouses to villas, and prices vary significantly depending on location, type of home and size.
Any condo or villa in Phuket situated around a marina is obviously an attractive location for anyone who keeps a boat moored in Phuket or enjoys the proximity to the sea. But the fact is that they are also stylish urban environments, with plenty of facilities. And because they are generally close to international schools, may also be appealing to some families. (The RPM and Boat Lagoon, for example, are practically across the street from the British International School.)
The Royal Phuket Marina also has the rather unique “Aquaminium”. This singular design offers a luxury freehold condominium, with direct access to a private berth for a boat. It is the only place on the island where you can go from the shower to the open water in a matter of minutes.
The Range of Phuket Villas for Sale
Over the last three years, the Phuket villa sector has come on leaps and bounds. As more and more families are moving to Phuket, the villa market is currently extremely buoyant, with new sales taking place every day.
While a foreigner may own a villa (the physical “bricks and mortar”) outright, full freehold ownership of the property relies on the right to own land – a right which is only afforded to foreigners under extremely special circumstances. The same law applies to estate houses, bungalows and townhouses (unless they have been legally structured for foreign freehold ownership).
Although it is difficult to categorise the entire Phuket villa market, for ease of differentiating between the different Phuket villas for sale, we have broken this down into villa estates, luxury villas and super luxury villas.
Please see more on this in the section of the Phuket Property Guide titled: Buying and Leasing Property In Thailand.
Phuket’s Villa Estates
Usually found inland, a few kilometres from the beach, these villas offer good value for money. They tend to be walled-in, tucked away from main roads, but without any spectacular views. Typically making excellent use of available space, the layout of these villas usually offers a stylish patio area, with a private pool in the centre of the courtyard.
Depending on the developer, the materials used could be perfectly adequate and look just fine, but they may be inferior to those materials used in higher-end villas.
One of these villas might provide a comfortable and affordable home for anyone seeking a place in the sun, especially if it’s in close proximity to beaches, shops and restaurants. Prices can start as low as THB 12 million, and most are also excellent rental properties too. Villas in Phuket are proving to be extremely good long-term investments.
High End Villas
High end villas are typically near the beach, or in tourist areas. Compared with villa estates, they have slightly larger land plots and floor areas, as well as superior build quality, fixtures and fittings. The attention to architectural detail is usually also more pronounced. Most luxury villas also have a sea view.
For those with a little more money to spend, high-end villas provide more comfort and enjoy more space. High end and luxury villas are extremely easy to rent in the high season, fetching a good return on investment.
These villas may sell for as little as THB 20 million and can go as high as THB 100 million.
Phuket’s Super Luxury Villas
There is not a fixed point where high end villas end and luxury villas begin, but for the purpose of this classification, “luxury villas” will be those priced above THB 100 million.
But what, apart from price, makes them so luxurious? They are generally located in the finest areas, with larger plots and living areas. The progressive architectural designs feature spacious interiors, high ceilings, modern western appliances and a keen attention to detail. All bedrooms will have walk-in closets and feature en-suite bathrooms with the highest quality fixtures and fittings.
Super luxury villas are usually nestled on lush tropical hillsides, with some of the most spectacular Andaman Sea views that Phuket has to offer, all the more resplendent at sunset. They have large gardens, with a sundeck, an infinity pool, and an outdoor dining sala. In short, the highest standards of quality and comfort.
While the prices start at around THB 100 million, don’t be surprised to see luxury villas being advertised in the USD 10 to 20 million range.
Phuket Real Estate Market Articles
SECTION 3: What Drives Real Estate Prices in Phuket and How to Ascertain Value
Real estate prices for both villas and condominiums in Phuket is governed by land values, labour costs and raw material costs. All of these have risen significantly over the past few years, but land values have been the driving force in the rise of property values over the last 3-4 years. This section aims to educate buyers on what drives prices in Phuket, both historically, presently, and moving forward. With a better understanding of the Phuket property market, buyers will be able to make discerning and educated decisions, before they purchase.
SECTION 4 : Valuing a Phuket Property
It is a known fact in the Phuket real estate industry that the true tangible price of a property is based solely on the final agreement made on price, between both the buyer and the seller. Of course, some buyers overpay for a property and have trouble selling again later. But the attraction and value of any singular property in Phuket is subjective, and beauty is in the eye of the beholder. A seller believes their property is worth a specific price, but the reality is that they will only achieve that asking price if one of the multitude of buyers agrees that the offer price is acceptable. If a property stays on the market for years, then the property is likely extremely overvalued.
SECTION 5: The Different Types of Phuket Property
There are many different types of Phuket property, with an array of different legal structures. This section assists to identify the different types of Phuket property for sale in Phuket. Although the various types are easy to define, sometimes these categorisations may overlap, creating even further sub-categories. If anyone is a serious buyer, it pays to understand the various types of properties that may be on offer in Phuket and to understand the legal connotations explained in later sections.
SECTION 6: The Inherent Risks to Buyers a Buyer Should be aware of – What Every Buyer of Property in Phuket Needs to Know
Foreigners who arrive in the “Land of smiles”, are mesmerised by how beautiful the Kingdom of Thailand is, and that surely in such an incredible place, full of such nice people, nothing can go wrong. Unfortunately, things often go wrong in Phuket, through either unfortunate circumstances, deliberate intentions or through the bereavement of the original lessee or land owner who made promises that the heirs refuse to accept. Buyers also need to be aware that many properties in Phuket are built illegally, and so the sale of the property at a later date, sometimes proves impossible.
SECTION 7: The Importance of Sound Legal Advice for Foreigners when Buying Property in Phuket
Foreigners are not allowed to own landed property in Phuket. This is a truth we have to accept. A foreigner is a guest in the Kingdom of Thailand, but every foreigner can seek quality legal representation from ethical lawyers to make sure that all is done correctly, and that foreigners are adhering to either condominium laws, and/or, more importantly, land ownership laws enforced strongly by the Thai authorities. Legal advice from an experienced Thai Lawyer is essential. If any foreigners decides to purchase a property in Phuket, then they must ensure, without a shadow of a doubt, that everything is done according the laws of the kingdom.
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