South Phuket goes upmarket

The recent history of property development in Thailand’s island of Phuket immediately shows a dichotomy in its north-south divide. In the past the south lingered way behind its more developed northern sister and when western-financed property development began in the south it was in the smaller, residential field rather than aimed at the more lucrative tourist or retirement market.

No longer. These days, major hotel and residence investors are about to, or have already, started construction throughout the south of Phuket. Gated communities are springing up in what were previously back roads and a major road-widening project from Tesco Lotus outside Phuket City to Rawai has radically changed the local residents’ way of life. A new pier is being erected in Rawai and Chalong’s waterfront alone hosts two major projects.

Yet house and property hunters tell of northern realtors scoffing at the idea of quality property available in the island’s south, while southern developers state the exact opposite. So what’s going on? Several of the island’s realtors, property dealers and land owners talked to Property Report about the situation.

Coral Tree Properties recently opened Rawai Villas, an 18-rai gated community over viewing the south of the island with vistas to nearby islands. Managing Director Bob Windsor says, “We’ve got 18 to 22 villas so it’s very generous in terms of plots in a gated community. Our site is on a slope from 24 meters to two meters above sea level. The second row of four-bedroom villas have views through the trees to the sea, on Rawai Beach and down at the lower villas, which are two-bedroom, three bedroom villas and we’ve created our own mini lake.”

Is this a typical south Phuket development? “No, we were looking from north to south about three-and-a-half years ago and we took about nine-months-to-a year to look around the (present) site. We looked up north by the airport but we’ve always had a soft spot for this part of the island. I felt, as a buyer, that the north part of the island gave investment opportunities but it wasn’t too much of a place where I wanted to live.

There were times when people were saying that the north and central parts of the island were better at serving the needs of golfers and that it suited the Hong Kong and Chinese set more who don’t want to drive more than 15 minutes from the airport. But recently, the road-widening projects from Lotus-Central down to Rawai have meant that you can get anywhere in a short amount of time. Nowadays you can get from here to the airport in 40 minutes.”

Hayo von Keller is Managing Director of The Mangosteen Resort and Spa – a five-star complex with a lofty 360 degree view of lower south Phuket. He plans to build pool villas to augment his investment.  He says, “From my point of view, the property development scene in south Phuket looks pretty good because what seems to be coming is all relatively high quality; The Four Seasons, the Puravana and others. I’m quite happy to sit right in the middle of all this, with all these good names around. And this area is different from, for example, the Laguna area – so different people come. I also believe that these high-end newcomers will do very strong destination marketing for the area. I hope very much that this place retains its personality as sometimes one gets the impression that certain areas in the north could be anywhere in the world and not necessarily in . It’s different here as the hotels are not attached together and I believe that here the hotels try to retain their own style.”

And what of the Mangosteen Villas themselves? “We plan 39 pool villas; nine are already sold and we will start to build a show house next month. It will all be adjacent to the hotel. I believe that as soon as we build the first house, interest will be great. The pool villas have a mountain view and will be built along Bali-esque lines.

As for Chalong and its environs, Kan Eng 1, long a Chalong landmark restaurant, has been razed and a top-end bungalow and restaurant project is presently under construction on its site.

Meanwhile, 800 metres to the north, the seriously dilapidated Fishing Lodge has been stripped to its architectural bones and is to be converted into luxury apartments featuring a restaurant and spa. Dredging of the Chalong Marina is heavily anticipated and with the combination of that and the 800-metre pier, convenience will be the byword amongst boat owners and dive operators.

Another example of higher-end developments is Mom Tri’s Villas Grand Cru which crests Kata Hill with a sweeping view of Chalong Bay and the nearby islands. The recently constructed project offers 17, 550 sqm three-storey residences. Quality is assured as architect, Mom Luang Tri Devakul, has been responsible for many of the island’s more impressive – yet extremely functional – buildings such at the Club Med, Le Meridien, Trisara Resort and of course, Mom Tri’s Boathouse Wine & Grill.

There are, of course, teething problems but these are nationwide concerns. “Red” Wayne Graham of East-West Property points out that freehold laws need to be sorted out as soon as possible and that the present visa rules make it very difficult for people under 50 years old to settle comfortably into island life. These are sentiments echoed by Peter Notley, International Sales and Marketing Manager of Katamanda. Under Peter’s aegis, Serenity Terraces – a beachfront resort and spa – will comprise 55 duplex apartments, four beach loft apartments and four beach duplex apartments facing east into Chalong Bay and will offer residents the use of an 89-foot luxury yacht. Construction starts in January 2007 and is anticipated to be complete within 18 months.

Peter says, “The diving and yachting industries continue to grow and with Chalong Marina I believe that growth is not going to stop. Overall I’m bullish about the whole place and even if the worst of worst happens – for example the troubles in the south overflowing – I believe that it would be a temporary situation. After all, Phuket is a finite place – there’s only so much room that you can build on it.”