Where are the best places to buy in Phuket for investment purposes?
Most rental return packages in Phuket are guaranteed and range from between 5 – 15% a year for 3 – 5 years.
Properties in Phuket offering a guaranteed rental return can be found on the following link: Properties with Guaranteed Rental Return in Phuket
Phuket’s tourism and expat community is largely centered around the west coast due to the abundance of beaches on that side of the island. It stands to reason therefore that most developments offering guaranteed rental returns will be positioned there.
Capital growth is subject to a host of external factors that affect the overall tide of the market; economy, tourism, immigration, supply and demand, exchange rates and unpredictable forces of nature to name a few. Taking into account recent advancements in existing and planned infrastructure on the island, such as the extension of Phuket International Airport, new roads , shopping centers as well as a light rail that will run from the airport to the south of the island, it seems that the government is investing in Phuket to ensure it can sustain an increase in visitors.
Where the economy is concerned. the recent formation of the Association of the South East Asian Nations (ASEAN) is likely to increase the size and quality of the labor market in Thailand. In addition, Phuket’s proximity and direct flights to China has helped it to attract an increasing number of Chinese tourists which has also caused many business to adopt stark changes in order to accommodate Chinese buyers. The effects of which should trickle down to the real estate sector as Chinese visitors invest in property on the island.
It should be noted that visitors to Phuket and buyers of property here come from all over the world, and this diversity makes it is more resilient and less affected by economic downturns in anyone particular country. It is also worth mentioning that Phuket’s charms are largely due to it’s tropical weather and beautiful beaches. Alot of effort has recently been made, by the government, to ensure that beaches are kept clean and protected from encroachment of businesses.
So to answer the question of which area you should buy for return on investment, I would say stick to the west coast. Will you see capital growth in 5 years time? I would predict that whilst the island retains it’s natural charms, the visitor numbers rise and the government continues to invest in appropriate infrastructure to accommodate it, demand for property should meet and may even exceed supply resulting in property prices rising and an increase in capital growth.