What’s the best thing to do in this Phuket real estate market?
Phuket Real Estate Rent or Own… often the question is asked. Many of my current and potential clients have this question. No one really wants to spend money, just to be spending money. We usually choose to be wise with our money. So, when the idea to buy or own comes to mind, and if it “feels” like it’s the right time. How does one find the correct answer when considering Phuket Real Estate Rent or Own?
What I’m finding and what has been going on in the last few years, and more so now, is the “self-serve” holiday rental market is “ramping up”. Of course, there will always be the Patong Party People in hotels. However, the family vacationers and snowbird holidaymakers are booking their multi-bedroom homes, super villa’s and condo’s a year or two in advance. Why? S H O R T A G E S. Simple. But! there is a window. The current (opportunity) window is between late November thru Mid-April. In other words, “H I G H S E A S O N.” Is it time you rented or owned property in Phuket?
How much are we talking, here?
This part of the year yields the highest rental rates and returns. We are finding that this market segment is increasing, especially in the single-family pool villa rentals. Depending on the age and size of the villas, it is not that unusual to find rates of $10,000 USD or 300,000 baht (per month) to be unusual for a normal-sized sub 200 sqm pool villa. Once moving into more upscale neighborhoods like Laguna, Layan, Nai Harn, Rawai and Panwaa, the rates can easily increase to double or triple on larger luxury type villas. These types, would, of course, have Panoramic sea views or be oceanfront villas. Upon going up to the mega-dollar Ocean Views in Peak season, finding U$D 10,000 per night doesn’t hint of being outlandish either. IF, you can find them.
Welcome to the new vacation world of Phuket high season.
OUCH! Ok so, what should I do?
One thing that I have found is this. Decide on what would work for you in the long term, are you here for the income, appreciation or future home with other people paying it off for you? or possibly both? Doing this for a holiday rental as an income-generating business has its ups and downs, (who has a no headache business? please message me) but with a good team of managers and agents working for you (and others) renting out fully equipped ready to go villas is pretty straight forward and can be highly profitable with little downside risks.
As a family vacationer who normally rents, perhaps this is not sounding so good. But, it is becoming the future of family holidays, here in Phuket, Thailand.
In a future vlog, we’ll look at less expensive models and options that work equally well, such as owning a hotel without the headaches or knowing legalities of owning the hotel.
I look forward to your comments and questions.
