The Kra Isthmus – the thin stretch of Thailand that widens into the Malay Peninsula – has an extensive coastline and dotted along both sides are tropical islands complete with paradise beaches.
You will find many people who will advise buying property in the islands of the Gulf of Thailand, including Samui, Koh Phangan, Pattaya and other lesser known but up-and-coming islands such as Koh Chang and Koh Tao.
However, the well-known island of Phuket, on the west coast of the Kra Isthmus in the Andaman Sea, takes some beating.
This Thai island is already one of the most visited spots in Southeast Asia, but its tourist trade is likely to grow even further in the future, which should delight property owners on the island. Jay Walker, marketing director of The Village Coconut Island development, also picks Phuket as his top Thai property spot.
“Phuket is the most popular holiday destination which also means that it is the most popular for people looking to buy property,” he says.“Although there are other up-and-coming areas, at present time Phuket is still the strongest due to its infrastructure and popularity with tourists.”
Attracting over five million visitors in 2007 – with passenger traffic through its international airport rising by 22.6 per cent from 2006 – it is little wonder that Phuket is tipped as a top island property market in which to invest. The strong tourism trade has supported Phuket’s property market. The island was the most active Thai property market in the fourth quarter of 2007, with transaction numbers up 32 per cent on the same period the previous year, while the value of property transactions went up 59 per cent in the same timeframe.
However it is a recent announcement that really makes property on this Thai island enough to make shrewd investors take notice. In May this year operator Airports of Thailand (AOT) announced a Bt5 billion expansion of Phuket International Airport to bring its capacity up to 11.5 million passengers annually by 2016 – an increase of 77 per cent over current capacity.So, what will this mean to island property prices in the short-term?
“Potential rental yields on the island range from 6 to 8 per cent annually, with the capital appreciation per year at around 10 to 15 per cent,” Chris Ball, sales manager of Phuket Plus, comments.Walker is even more optimistic about the investment outlook in Phuket, saying: “We feel that 12 to 15 per cent rental yields, and 15 to 20 per cent appreciation, is not unrealistic.” The millions of extra visitors who will fly to Phuket by 2016 should make investing in property on this Thai island a very tasty opportunity for investors indeed.
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