Phuket Rental Demand Keeps Increasing
Recent reports are showing that Phuket is continuing to attract holiday makers from all over the world who prefer to rent private villas or apartments instead of staying in hotels.
Last year villas and condominiums on Phuket witnessed an improvement in rental demand during the high-season. Now lessees are coming from a greater variety of countries, with Hong Kong and Singapore’s expatriates plus Russians, Koreans, and Indians coming in beside Europeans as key markets investors.
Recent enquiries have been made for the northern part of the island as well as Millionaire’s Mile Kamala. Most enquires are from Europeans and Russians. The report went on to say that Koreans have preferred to stay in Bangtao’s residences near Laguna.
A number of retail community developments have also been started in parts of the island. A community mall in the Cherng Talay-Bangtao area, namely Boat Avenue, will be a mixed-use development and an integration between commercial and residential functions. The project will create a new pedestrian shopping street for the Laguna area.
The rental period ranges from three days to one and two months depending on nationality. Europeans tend to stay for longer periods of time while Asian usually stay on a weekly basis. Last year, there was a significant increase in enquiries about rental on the Andaman isle and the rental market growth spurred a positive growth in tourism.
There were approximately 4.2 million passenger arrivals in the Phuket International Airport in 2011 due to current attractions as well as future plans for malls, a water park, and theatre.
Rental rates vary with size, unit type, and amenities as well as location. A three-bedroom villa in the Laguna area costs around US$ 1,000 to 1,250 per night during the peak season. A Kamala residence costs US$2,000 per night for a four-bedroom villa, with an area of 950 square metres. Projects in Karon and Patong are cheaper with prices ranging from US$270 for a two-bedroom unit to US$90 for a one-bedroom unit.
Most Phuket villa buyers use their residences periodically throughout the year and expect some form of rental management during the time they are not in Phuket. Two-bedroom segments have seen the most promise as they appeal to new visitors wanting luxury while also looking to budget.
For some condominiums owners can expect a guarantee of five to nine per cent for three to five years in areas along the west coast.