Phang Nga Becoming Phuket’s Premier Property Market

Trisara

With the mix-use Laguna complex – home of the much-touted Banyan Tree – along with glitzy neighbours such as Amanpuri and Trisara, an entire new industry of multi-million dollar villas was born. On Mai Khao Beach, at the northern tip of the island, development mogul Bill Heinecke built the JW Marriott, along with a successful vacation ownership complex and gained both market share and a platform for more new hotels in the area. On the east coast, Cape Yamu – designed by world renowned Philippe Starck – became a buzzword for the rich and famous.

Looking at Asia’s other resort islands, such as Bali, shifts in micro markets happen over time. Land availability and access to international airports – along with demand drivers such as golf courses and marinas – are key contributing factors. As tourism continued to grow in Phuket, luxury housing followed suit and two of the most desired items on buyer’s wish lists were ocean views and beachfront property. Ocean views were doable but, with a few notable exceptions, west coast beachfront property was either priced beyond reach or not available. Heads turned north and, as if by magic, Phang Nga’s property market materialized.

Natai and Aleenta Signal Start of Property Boom

Natai Beach

Not so long ago, both Ko Pilai and Natai beaches were a series of prawn farms and agricultural areas. Beachfront property cost less than 1 million baht per rai (a Thai unit of area equal to 0.395 acres or 1,600 square meters) just ten years ago, and five years ago was in the 2 million baht range. The area’s only development was Dusit Hot Springs Resort (named after the local owner and not the Thai hotel brand). First to build a large villa was one of the owners of Bangkok’s Emporium shopping mall. Suddenly, Phuket real estate agents discovered the area and single villa lots started to pop up; prawn farms were slowly dismantled as property became the areas new economy.

Prices in the area quickly rose to 4 million baht – and then 6 million baht – per rai. The owner of Dusit Hot Springs, one of the largest landholders in the area, began subdividing and selling land parcels. At the same time, a budding hotel entrepreneur Anchalika Kijkanakorn launched the hotel managed Aleenta development. With prices on par with those in Phuket, the project quickly sold out and Natai became the hot word on high-end property seekers lips.

There was no real mystery for the demand of these projects, as they offered what other areas could not: walking straight out of your villa to long stretches of white sand beach with breathtaking sunsets nightly. Coupled with easy travel on a four-lane highway, door-to-door travel time to the international airport is only 20 minutes. Quick to follow the boom were mega villas by the likes of California Fitness guru Eric Levine and a trio of Hong Kong society couples. Land prices doubled again, reaching the 10-15 million baht range. As prices moved north, so did those seeking the next big opportunity.

Courtesy of Indigo Real Estate

Raffles Starts The Hotel Name Game

Thai Muang Golf Club

While Natai has seen a few small hotel properties developed, the announcement late last year of the Raffles Resort and Residences – with 150 rooms and 25 luxury residential villas near Tah Sai and Bo Dan beaches – signalled a more mature market. Partly owned by Saudi Prince Alwaleed Bin Talal’s Kingdom Hotel Investments, the vicinity has a significant number of other large land holdings purported to be hotel and mixed-use developments of an international scale.

Even farther north, overseas suitors are pursuing the 18-hole Thai Muang Golf Club for redevelopment. Given the availability of larger beachfront land parcels, the Tah Sai area would appear to be poised to become a significant hotel and high-end property market in the future. Land prices are now reaching 20 million baht a rai. Development in Natai and Tah Sai is still in its infancy, but having some of Thailand’s most breathtaking beaches, proximity to Asia’s leading resort destination in Phuket and air access – both regionally and long haul – the cards are stacked in its favour. As to the next big thing, maybe Khao Lak is starting to look very promising.

Hot Tips in Phang Nga

Buying Property – Indigo Real Estate (indigore.com) specializes in the Natai/Tai Sai area, contract Tom Travers at Tom@indigore.com.

Rent A Villa – CBRE Holiday Rentals (cbre.co.th) offers Villa Natai a lovely beachfront property. Contact Netnapit Huapai at Netnapit.huaipai@cbre.co.th

Resort Getaway – Aleenta Resort and Spa (aleenta.com) a chic boutique resort located on one of Asia’s beast beaches.

About Bill Barnett

Bill Barnett is Managing Director of C9 Hotelworks (c9hotelworks.com), a Phuket-based hotel and residential consulting firm that has been involved in many of the islands leading developments. With over 20 years experience in the Asia-Pacific region, Bill has held senior corporate roles in development, hotel operations, and asset management. He was previously Deputy Managing Director of the publicly listed Laguna Resorts & Hotels. Prior to that, he was Chief Operating Officer – Asia-Pacific for Millennium & Copthorne Hotels with responsibility for 43 hotels. As an executive with Century International Hotels in Hong Kong, he played a key role in the expansion of the chain for nine years. His previous asset management and ownership representation experience includes the following properties: Four Seasons New York, Regent Beverly Wilshire, Ritz Carlton Hong Kong, Grand Hyatt Taipei, Hilton Seoul and Westin Philippine Plaza. He attended Cornell University School of Hospitality Management.