Promote youryouryouryouryour property on the ‘Phuket Today’ show. Call 080-690 2564

PHUKET PROPERTY REVIEWPhuketGazette.NetMarch 2013

Will Eastern European buyersdrive Phuket’s property boom?

IN THE south of the United Statesreligious evangelists often talk intongues that are nearly incomprehen-sible. Part of the fervor often comeswith the handling of snakes. It’s prettyarcane and more than a little scary.

As we move into top gear in 2013,which is the Year of the Snake, one ofthe top storylines on the island is themeteoric rise of Eastern Europeantourists visiting Phuket.

Last year the combination ofRussians and travelers from the formerSoviet states was well over 600,000.This year the number is set to go evenhigher.

Turning the pages back for amoment, we have to look back a decadeto when tourism was a prime mover inthe island’s great property boom,impacting real estate transactions.

It was not so much a case ofsunburned tourists crawling off thebeach into the arms of a waiting brokerand signing a deal then and there, butmore the building of a foundation ofisland-loyal repeat visitors.

At the time I was working at the

island’s leading destination develop-ment Laguna Phuket and more oftenthan not property buyers were visitorswho had repeatedly stayed in one ormore of the multiple hotels locatedthere. While many came and went, anumber of them eventually becameconverts, not to the oddities of a

religious order, but to the resorthousing estates or tropical apartments.

Certainly the dark days of the globalfinancial crisis brought an abrupt endto the party and, for the last four orfive years, the headlining acts havebeen domestic property buyers andinland low-cost units.

Sentiment is one of those intangibleselling tools for almost any consumergood, or service including real estate.Over the past six months overseasbuyers have started to flock back to themarket in increasing numbers.

Continued on page 15

LAGUNA SHORES: Phuket’s property developers turn back the pages as tourists become the boom drivers again.

By Bill Barnett

Phuket’s property expertand Managing Directorof C9HotelWorks.com

COMMENT

March 2013 P H U K E T G A Z E T T E 13COMPANY PROFILE

AFTER a few rain soaked delaystowards the end of 2012, contractorDCM has now added a twilight shift topush construction forward at TheView Phuket.

"There is a real sense of excite-ment as the construction builds inmomentum, we have now completedabout 80% of the superstructure.Every day we see more and more ofthe architect's stunning designs cometo life," sales manager MundoSmellini said.

Atta Studio's dynamic young teamhave created an architectural master-piece in a stunning location on Phuket'strendy west coast. “We have seen asignificant increase in both enquiriesand sales, the buyers are happy in theknowledge that the project is funded byKrungsri Bank. We expect to launch ournew branding initiative at the start ofQ2 2013,” Mundo explained.

The name for the development wasconceived from its natural surround-ings, perched high on a hillside over-looking a pristine bay. This exclusive lowdensity estate has just 53 condo unitsthat have been designed for discerningbuyers that appreciate the differencebetween a product that simply offers “aview” and those that appreciate theoptimum: namely “The View.”

The View's architects have alsodrawn inspiration from nature toproduce a simple yet stunning buildingform that is modeled on the shape andmass of ocean waves. The tiers of unitsand blocks represent the graceful curveof a wave and its continual evolutionfrom base to crest.

The low-density low rise style is amodern tropical contemporary designwith strong and deliberate emphasis

The message is crystal clear from the developers of the Kata condo project, The View Phuket. All systems go!

employed to maximize the view, whileprotecting personal privacy. Carefulselection of appropriate materials helpsto ensure the practicality and durabilityof the construction without compromis-ing the aesthetic or function of theunits. Each block is constructed in lightbright white allowing excellent naturallight, while the generous windows andfull height doors allow reduced relianceon air conditioning.

The View is conveniently located ona private elevated position overlookingthe cosmopolitan beach district of Kataon the sunset coastline of Phuket

Starting from 11.5 million baht, TheView has a range of high quality seaview one-bedroom units at 116sqm toopulent six-bedroom penthouses at674sqm. The units are designed toachieve both significant rental returnsand capital growth.

Taking a look at The View

A GROWING VIEW: Construction is moving along at The View in Kata and the managing directors, Alexander Grabowski,Sasipa Khankew and Nabile Graidia (below) are obviously pleased with progress to date.

March 20132 P H U K E T G A Z E T T E

March 2013 P H U K E T G A Z E T T E 3NEWS

SOCIAL media is redefining the relationshipbetween hoteliers and online travel agents.

Social media campaigns and mobileapplications are the latest businesstools being used by today's hoteliersto break free from the proverbialchains of commission-based book-ings through online travel agents(OTAs), which conventionallycharge commissions up to aquarter of room rates for theirthird-party service.

However, with almostevery traveller tooled upwith a smart phone ormobile device to organizetheir daily life, hoteliersare waking up to thepowerful income-earning potential ofguests bookingdirectly throughtheir hotels' ownwebsites andindependent bookingengines, as well as throughwebsites for tablets, mobileapplications (“apps”) and social mediasites such as Facebook.

Pioneering Phuket-based internet market-ing consultancy Wide Discovery Dot Com isthe first company in Thailand to developpremium internet-marketing solutions for

Hoteliers go mobileThe explosion of social media and mobile devices in recent years is

having a profound effect on the way hotels do business.hotels that include online booking engineapps for smart phones and mobile devices.

Phuket hotels already enjoying thefreedom of getting more exposure

and direct bookings throughthe WD Facebook app

and the upcomingWD hotel mobile

application, whichallows users to book

rooms directly throughtheir smart phones and

tablets, include: The KeeResort & Spa, Patong;

Cape Sienna; Aquamarine;Sugar Marina and the

recently opened KalimaResort.

As well as allowing the hotelsto accept direct online bookings,

the mobile applications developedexclusively by Wide Discovery gives

hotels the tools to create their ownguerilla marketing campaigns, such as

online photo contests for discounts andprizes, independent of conventional online

travel agents.According to Kee Resort & Spa Executive

Director, Tanapong Somnam, their hotel onPatong beach has seen a “significant andsteady increase in direct online bookings”since adopting Wide Discovery's social mediaand mobile applications.

THE arrival of 2013 marked five years of building success foraward-winning Phuket architectural firm Able Architects.

More than 100 top Thai architects and constructionindustry specialists flew into Phuket to join the celebrations;a fundraising event held at the Blue Elephant Restaurant inPhuket Town.

The fifth anniversary 'white corporate' fundraiser aimedto promote the success of Able Architects' business modelin which managing director Pakhin Aunggulsant (above) saidtransparency, corporate social responsibility (CSR) and local-global collaboration were key components. Money raised forcharity at the event totalled 162,000 baht.

Able Architects was awarded the BCI Asia Green Leader-ship Award in 2010 for Phuket's only self sustainablemuseum dedicated to preserving the island's Sea Gypsyculture: the Orang Laut Cultural Centre.

“We have already embarked on nine new projects sincethe beginning of the year in five provinces in Thailand as wellas the Philippines, which equates to 2,410 key rooms coveringa GFA of 153,343sqm with a total construction value ofBt4,732 million in the first half of January,” said Khun Pakhin.

Charity and collaborationkey to building success

March 20134 P H U K E T G A Z E T T E PROFILE

Can you explain Sansiri's cross-overbetween 'studio' and 'one bedroom'units?

Due to pricing and value factors,studio sized apartments have becomemore attractive in the market. Withrising construction costs and landprices, it's no longer practical to offer45 to 50 square meter one-bedroomunits in this price range. With ouroptimal space utilization designs, weare able to offer 30 sqm one-bedroomunits, and thus better meet thedemand of the studio segment. We dothis by effectively separating living andutility areas.

How does the increase of the dailyminimum wage to 300 baht affectland prices?

About 30% of construction costscome from labor, while 20% comefrom the materials... But even thematerials must be produced by labor.Therefore, smaller sized units willbecome extremely popular in the nearfuture. Our projection is that theaverage price per square meter will goup at least 10% this year.

How is Sansiri different from otherdevelopers in Phuket that have similarofferings?

People know that there is adifference between Sansiri and otherbrands – not just in Phuket, but allover Thailand. Our offerings aredifferent in design and materialquality. To save on costs, manydevelopers will apply one design tomany areas and products. If you go toBangkok, Phuket or even Chiang Mai,

Uthai Uthaisangsuk is the Senior Executive Vice President of Sansiri PCL's Business Development and ProjectDevelopment Division (high rises). Speaking exclusively with the Phuket Property Review, Khun Uthai offers some

valuable insights into current and near future trends of the island's studio-sized condominium segment.

you will see the same building, sameproduct. But Sansiri is different.

We not only differentiate amongthe brands, but even within the samebrand. No one dCondo project, forexample, will be the same as another.At each location, and in each area, thefacade will be unique, designedespecially for that area. In having aunique design every time, you have topay the architect for each design. So,many developers skip this and just useone universal design across severalprojects in different areas.

Other than design, another areadevelopers try to save in is by usingthe same materials in all of itsprojects. They do this to take advan-tage of bulk savings, since youwouldn't be able to reduce costs ifusing different materials for eachproject. Sansiri does not sacrifice thedesign or quality of building materialsin order to save costs. We emphasizeon the design, and are continuallyimproving it with each project. Foreach project, we aim to make thedesign better than the previous one.

The other main area we differenti-ate ourselves is in service. Anyonewho has experience with our salesrepresentatives will know that wehave highly trained sales personnelthat can support our customers needs.Our customer sales reps will continueto offer support to customers postsale, and even post transfer.

Who are Sansiri's customers?We classify our customers into two

groups: Long term residents and shortterm residents.

Long term could be local Thais orforeigners who stay here, work here,live here and pay taxes here. In thisrespect, foreigners aren't differentfrom Thais – they have the same livingneeds and we understand this.

The other group is short termresidents who might come to stay inPhuket for one to three months of the

Sansiri see a smaller future

year, and then live somewhere else therest of the year. This group includesinvestors who prefer to rent out theirproperty when they're not here. So, forthis group, we offer property manage-ment services, through our localsubsidiary companies, such as PlusProperty in Phuket, for example, tobetter meet the needs of all our clients.

STUDIO TRENDS: Uthai Uthaisangsuk believes small is Phuket’s next big trend.

EASTMarch 2013 P H U K E T G A Z E T T E 5

GROWTH! With a huge popula-tion of Thai citizens, interna-tional corporations, businessowners – both Thai and foreign– and retirees living, workingand owning property in PhuketTown, the real estate marketfor the island's capital city hasseen a huge rise in demand thispast year.

The prime markets are the2.5 to 5 million baht range fortownhouses or condos, the 5 to10 million baht range for a singletwo-storey house with/withoutpool, and the 15 to 20 millionbaht price point for a singlefamily dwelling with customdesign on a bigger plot.

Buyers have a better selec-tion in Phuket Town. They willpay a premium for a goodlocation, new design, a well-known developer and after-salesservices.

They feel secure and this isalso supported with the attitudethat Phuket, after all, is anisland, and a rare investment,with a strong mercantile andtourist base, as well as an ever-growing local and expat workforce requiring services andlodging. These aspects allsupport growth predictions forthe Phuket Town area, as well as other areas ofPhuket.

As mentioned earlier, the number of peoplemoving to live and work in Phuket is growing eachmonth. These new arrivals need rental propertiesand some need to purchase homes for their families.

For those who have alreadyinvested in property, theirexpectations are to providelodging and services for relocat-ing clients. New investors arekeeping their properties forrental income or resale, or topass on to the next generation.

Unfortunately, we don’t findmuch of old Phuket designatmosphere in more recent realestate. Many developers aretrying to keep European-Sino-Thai style, but modern style orresort style seems to be trendyfor the new generation ofdevelopers.

With the bustling growth ofthe modern Phuket City, the oldarchitectural quarter is oftenoverlooked. The main attractionsin Old Phuket Town are the Sino-Portuguese buildings (theChinese row houses), the Sino-Colonial mansions, the elaborateChinese and Thai temples, andthe public markets.

The best way to appreciatethe architecture is to walk thestreets. You will see some of themansions and shophouses thatare beautifully restored, withmany still inhabited by localfamilies, restaurants, cafes andguesthouses.

Phuket Town – now Phuket City – is a gem thatis becoming a polished stone in the landscape ofthe Pearl of the Andaman.

Nitchapak Panjamakitti is Phuket branch managerat Plus Property Co. Ltd. www.plus.co.th

Something old,something new

Plus Property’s NitchapakPanjamakitti takes us on

a tour of old and newPhuket Town.

COMO goes eastCOMO Hotels and Resort is to develop andmanage Point Yamu, the northeast coastdevelopment overlooking Phang Nga Bay

The key partners in this project are prop-erty development company Campbell Kane,the KS Group and Hotel Properties Limited.COMO’s multi-year management role encom-passes full branding, sales, marketing andoperational responsibilities. COMO is alsoplaying key roles in the concept, developmentand execution of design and cuisine, to bringthe signature COMO experience to guests.

Point Yamu will have 106 rooms, including30 private villas, with panoramic views of thecape and the surrounding Andaman Sea. Thedevelopment will also have a 100-metreswimming pool, a COMO Shambhala Retreatfeaturing 8 treatments rooms as well as a yogastudio, an Italian and Thai restaurant (picturedabove) featuring COMO Shambhala’s healthycuisine, as well as access to a secluded beach.

The interior aesthetic will be by Italiandesigner Paola Navone. In 2000, she wasnamed Designer of the Year by the Germanmagazine Architektur & Wohnen. In 1983,Paola was honored with the importantInternational Design Award. Her customershave included Abet Laminati and Gervasoni(where Navone is Art Director), Armani Casa,Piazza Sempione, Cappellini Mondo, Driade,Orizzonti, Pomellato, and Casamilano.

“We are pleased to be working with COMOHotels and Resorts on this venture,” saidPeter Hamilton, Managing Director atCampbell Kane and developer of the newhotel. “COMO’s range of properties and theexperiences they offer continue to redefineluxury travel.”

March 20136 P H U K E T G A Z E T T E TROPICAL CONDOS

PHUKET had been hit by the globaldecline in economic fortunes like allother property markets, but entering2013 the island is enjoying a hugeincrease in visitor arrivals and many ofthese travelers are also looking to buyproperty.

Going forward, the most popularresidences are condominiums and, asa result of increasing Thai entrepre-neurial activity there are manyprojects being developed. Over thepast few years Phuket land prices havesoared and so the developers areconcentrating on vertical rather thanhorizontal construction. Condomini-ums also match the modern lifestyleneeds of many buyers and manyquickly hit their 100% sales target asPhuket has a great inflow of Thai andforeigners moving here both to workand retire.

The demands of the foreign andthe Thai segments are rather different.

Thais tend to like to live in a townarea, not far from their office and buyfrom one to three million baht.

Foreigners prefer to live near naturaland tourist facilities and they seek largerroom sizes. Prices start from about amillion baht but can go much higherdepending upon the exclusivity of thedevelopment. As the maintenance feesare less for condos than for a house,some foreigners are now selling theirhouse and moving to a condo.

Supply is certainly growing and hasturned Phuket into a pretty favorable“buyers’ market” and customers maketheir selection depending on thequality and reliability of the projectdeveloper.

Other factorsdriving thePhuket marketare the growth indirect flights frommany parts of theworld and manyare speculatingthat Phuket willbe the center of ASEAN in the nextfew years. Many property agenciesare reporting increased investors fromSingapore and Hong Kong divertingfunds from other markets.

One thing that makes Phuket moreinteresting for buyers are the strictenvironmental laws and strongenforcement. For example, the heightof buildings and proximity to thebeach have limits, and new projectscannot be constructed which damagethe environment. All this drives upproperty costs in Phuket compared toother locations, but it is worth it forsustainability and the future of themarket.

There are also pressures on publicservices, roads and utilities etc., butthe government is very aware thatthey need to invest heavily in infra-structure to sustain the growth in theproperty and the tourism sectors.

Clearly potential buyers must dotheir “due diligence” and thoroughly

The economics of condo choices

research the developer, land title,hidden costs and management feesand inclusions (see page 14). A good,reliable and impartial lawyer isessential, of course, particularly forforeign buyers.

RPC's third phaseUnderscoring Phuket's current

condo craze will be the launch of theRoyal Place Condominium's thirdphase. Manassanan Thiensawangkun,Assistant Vice President of VS Group(Phuket) Co. Ltd., said that the realestate market in Phuket is continu-ously expanding. This is especially truefor the condominium sector, he said.

Demand, he insists, is on the up forall types of condo developments –those with a sea view, near the coastand especially near the city.

The developer has started takingreservations for its third phase, orproject three, which will featuremodern design condos with integratedfunctionality.

Featuring small, medium andlarge units, starting as low as 1.5million baht, the Royal Place Condo-minium sufficiently meets the needsof consumers.

Khun Manassanan comments:

“Clients choose the Royal PlaceCondo for various reasons, especiallythe design and quality of buildingmaterials that we use.

“Moreover, the condo is apopular choice for its ideal and

central location,which has potentialfor much upwarddevelopment in thenear future.”

Located on theBypass Road, to theopposite of TescoLotus, the develop-ment is within close

access to leading shopping outletsand other city amenities.

Fuse Valley

Nature and city hybrids can lookforward to the launch of anothereconomically-priced condo on thegreen hills between Phuket Town andPatong.

Bangkok-headquartered PruksaReal Estate PLC's inaugural condolaunch outside of the capital is FuseValley (Kathu-Patong).

Emphasizing the value of locationby offering convenient access tonature and amenities, the develop-ment will rise on the hills behindKathu, just a short drive to Patong.

Metha Chanchamcharat, Directorand Deputy Managing Director ofPruksa Real Estate, explained:“We've had good reception to ourthree Fuse brand condo launches inBangkok – the Fuse Chan-Sathorn,Fuse Mobius Ramkhamhaeng

Klongtan and Fuse Sense Bangkae. “The condominium market is

getting more popular due to changingconsumer behavior, in which there is agreater emphasis on the need forconvenience in commuting, makingcondominiums the 'first home' oreven investment.”

Fuse Valley in Phuket will bedesigned around a 'modern nature'concept, with the development tointegrate into the natural setting,while also offering a modern citylifestyle through its wide array ofamenities, including a swimming pool,fitness room, clubhouse and personalrelaxing spots.

The condo will be within a shortdrive to Central Festival Phuket,Makro, Big C and Tesco Lotus. Basicunits are priced at just under a millionbaht.

The Emerald TerraceThe Emerald Terrace is located on

a lush and tranquil hillside, situatedwell above the much sought afterwest coast beach community ofPatong, just a few minutes awayfrom a plethora of world classamenities, including shopping, finedining and a world-renowned vibrantnightlife.

Developed by Phuket FutureDevelopment Company, best knownfor Kathu Golf Condominiums, theyare now offering competitively pricedelegant low-rise condominiums in ahigh occupancy area of Patong.

By Steven Layne and Baz Daniel

Supply is certainly growing and has turned Phuketinto a pretty favorable “buyers’ market” and cus-

tomers make their selection depending on the qualityand reliability of the project developer.

GREEN SCENE: The Emerald Terrace is one of several condo projects around the island to be launched this year.

March 2013 P H U K E T G A Z E T T E 7NORTH

Expectations highat the top of Phuket

Engel and Voelker’s Phuket sales manager Amy Kohgives us the low-down on what’s hot up north.

NORTH Phuket is still the hottestgrowing area on Phuket island interms of the increasing number of in-ternational & local branded hotels andresidential projects.

The new “boys” on the block aremainly in Nai Thon & Mai Khao, aswell as the northeast area close toHeroines Monument.

The latest addition to the north-west area finds one of Thailand’s mostestablished and respected propertydevelopers launching its first beach-front residential project. Sansiri's BaanMaikhao will feature studio, 1-3bedroom and penthouse units rangingfrom 60 to 265 sqm per unit.

The northeast has Phuket’s mostpopular deep water marina – theYacht Haven (above) – with berthingcapacity for up to 200 vessels with on-site facilities befitting an internationalport-of-call.

With escalating land prices inPhuket Town, many local Thai devel-opers have also chosen to developlocal housing communities in thenortheast, with improving infrastruc-tures including a four-lane highway foreasier accessibility to the airport, westcoast and Phuket Town. Also callingthe north their home are three golfclubs, two marinas, an internationalschool and sports complex.

Land prices especially beachfrontland in Mai Khao and even acrossSarasin Bridge into Phang NgaProvince have been steadily on therise with investors, both local &foreign, banking for future residentialand commercial projects.

Both the east & west of NorthPhuket are growing rapidly, as thespillover development from PhuketTown continues. Expectations are highfor North Phuket with a bright &promising future.

Amy Koh is sales manager at Engel &Voelkers Phuket.www.engelvoelkers.com/th

THE Erawan Hotel Growth PropertyFund will be launched in thesecond quarter of this year with afocus on Phuket and Pattayaproperties.

Erawan Group PLC have fileddocuments with the Stock Ex-change of Thailand to set up thefund, which will be managed bySiam Commercial Bank. The long-term plan is to use the fund forexpansion by acquisition of three-and four-star properties around thecountry, but will initially focus onThailand's top tourist destinations,including investment in the IbisPatong property.

Use of the fund for the IbisPatong came after the companywas unable to raise sufficient fundsfor the Phuket property through itsstandard asset disposal exercise.

A new subsidiary ErawanGrowth Management Co., Ltd. hasbeen formed to support theplanned property fund.

In related Phuket news, theErawan Group reported 2012operating results for The NakaResort, in Phang Nga Bay, with a 17%increase in year-on-year occupancy.

Rebranded as part of Star-wood's Luxury Collection, lastyear the resort achieved 43.8%occupancy with an average roomrate of 8,928 baht per night.

The property fund sector looksto see further Phuket moves thisyear as luxury Phuket resortsoptimize capital though funds. InDecember, Songkran Issara, ofCharn Issara, developers of SriPanwa, told the Gazette's televi-sion show, Phuket Today, that hiscompany was also planning to setup a fund this year.

Erawan propertyfund for Phuket

March 20138 P H U K E T G A Z E T T E SOUTH

South down, but looking up

REAL buyers still seem to be prettythin on the ground here in the south ofPhuket, though there are distinct signsof movement. This is mainly in low-cost condos and cheaper houses(under 10 million baht). Other localbrokers I've spoken to seem to agree.

However, there certainly havebeen sales in recent months in thewell-established and/or well-managedprojects. The Title condo on Rawaibeach and Two Villas come to mind.Both projects seem to be selling well.The Title has a good number ofBangkok buyers and investors, inaddition to a fair number of localforeign buyers.

Based in the south of the island, My Phuket Properties executive Peter Notleydiscusses the challenges ahead for the local real estate market and some of the

choice homes he has come across on his travels.

Another new project, PlungeTropic in Nai Harn, sold all eight villasof their first phase within six months.Many of the buyers are Russian. Thisproject seems to have what buyersare demanding right now, namelygood design, good location and a verygood price.

Other new projects are also in thepipeline and so the mid- to long-termmarket does not appear to be bearish.

My Phuket Properties have anumber of villa and condo resales onour books, but only the cheapest onesare selling, and any perceived or actualhold-up in the sale has proven to be adeal breaker. Thai-owned units are

proving a very hard sell to foreigners.It's sea view and foreign freehold thatmost of our enquirers are wanting.

Currently, our top listing is aspectacular 4- to 5-bedroom villa inthe hills behind Rawai. Superbly fittedout internally, it has a huge pooloverlooking the Rawai-Chalongcoastline and eight islands.

To me, this is more interestingthan a bland horizon and, of course,it's nice to wake up with the sun – ifyou can tolerate it that early. Whilenot a distressed sale, the owner haspriced it well below its real value.

At the other extreme, JindarinBeach Resort over on Coconut Island,just northeast of Phuket Town, is alittle eco-resort that provides amodern-day Robinson Crusoe-typegetaway location. There are a fewland plots still available at just 1.5million baht on which small bungalowsor larger thatch-roofed houses can bebuilt for as little as 1.2 million baht.

Jndarin is already home to a handful ofretired pilots and over-worked Phuketexecutives. With its thatch-roofedrestaurant and bar, large beachsidepool and private wooden jetty, thislittle project represents terrific value.It's a great little place, sitting in atime warp, yet only 15-20 minutesfrom Phuket Town. Very handy.

www.myphuketproperties.comGOOD MORNING RAWAI: Views like this give the south a special charm.

TIME WARP: Jindarin Beach Resort is just 15 minutes from Phuket Town.

Peter Notley of My Phuket Properties.

March 2013 P H U K E T G A Z E T T E 9WEST

High returns expected

ZCAPE and Zcape X2 condominiums onthe west coast of Phuket are on trackto bring high returns to investorsseeking long-term earning potentialfrom the affordable high-qualityaccommodation, launched in Phuketby Thailand's leading urban lifestyledeveloper Tri Property.

Located next to the new BoatAvenue shopping complex in CherngTalay, near Laguna Phuket, the launchof Zcape Condominium in July lastyear marked a highly successful debutin Phuket for Tri Property. All 198 ofthe trendy one-bedroom and studiounits had sold out by the end of July.

Following this sell-out success, TriProperty went on to launch the ZcapeX2 Condominium in December withsimilarly successful results, reporting80 per cent of the 191 units alreadysnapped up.

Adisorn Vivakanond, Tri Property’s

CEO, said both condominiums areideal long-term investment opportuni-ties in one of Phuket's most presti-gious and dynamic mixed-use areas onthe west coast.

“The Zcape condos are a very coolconcept in a much sought after spotnear Bangtao Beach that promisesvery substantial returns with a verylow outlay for investors seeking long-term rental returns,” said Mr Adisorn.

“Tri Property's focus on buildingaffordable accommodation for today'sglobal lifestyles in a prime location hasproved to be a perfect combination forinvestors with long-term vision,” he said.

Available freehold for foreigninvestors starts from 1.98 millionbaht. Show units are open for viewingat the Zcape X2 on-site sales gallery onBaandon-Cherngtalay Road.For more information, visit www.z-phuket.com or call 084 444 0707-9.

Amari movesinto Patongcondo marketTHE CONDO craze continues on thewest coast with the recent announce-ment that Amari Estates will bebringing its successful Residencesbrand to Patong.

Built up into the hills around theAmari Coral Beach Resort, the newAmari Residences Phuket will have upto 190 1 and 2-bedroom condo-minium units and 10 3-bedroom poolvillas.

With prices for the condo unitsstarting from just 7 million baht, theResidences will be among the bestvalue properties in the resort town,although the high-end pool villas willrun up to 50 million baht each.

Amari Estates has been buildingitself a solid reputation as a propertydeveloper. The company already hastwo Residences properties in Bangkokand three more, including Phuket, inthe pipeline; Amari Residences in HuaHin will complete two hundred andten properties next year; and TheOriental Residence in Bangkok.

Amari Estates goal is to managefifty-one properties by 2018, withplans to expand into China, HongKong, India, Sri Lanka, Australia, theMiddle East and Vietnam.

In Phuket, all of the Residences will

come with full access to the private 24-hour clubhouse, swimming pool andsun deck, a fitness center and a poolbar. Residences residents will also haveaccess to all of the services andamenities at Amari Coral Beach Phuket,including restaurants, kids’ club, twoswimming pools and pool bar.

The units will be managed byAmari’s recently launched OnyxHospitality brand, which will offer amanaged leaseback rental program,allowing owners both usage of theirunits and a guaranteed 6% per annumrental yield.

“Phuket continues to stay ahead ofits competitors as the tourist destina-tion hotspot of Southeast Asia and thevalue of well-managed properties inprime locations continues to appreci-ate,” Amari Estates & Italthai Group’sCEO, Yuthachai Charnachitta said. “Thelaunch of Amari Residences Phuket willset a new market benchmark forturnkey holiday home investments byoffering residences with a strongrental performance in a sought-afterprime coastal location.”

March 201310 P H U K E T G A Z E T T E LUXURY LIVINGEXPLORING Phuket isn't completeunless you can get out to the beautifulislands surrounding the Pearl of theAndaman. Phang Nga Bay alone cantake literally weeks to properlyreconnoiter. Every karst and quiet bayhas its own unique ecology andatmosphere.

So, to do the job properly, onerequires some serious water-borne kit,and international brokerage LeeMarine will most likely to have some-thing to suit your exploring needs.

Top of the local explorers wishlistshould be the new Riviera 45 OpenFlybridge (right). Lee Marine has beenselling Riviera around the region for thepast 15 years and broker MartinHolmes is more than pleased to be ableto offer this latest addition to theRiviera stable.

The 45 has been handcrafted to suitthe balmier climes, with exotic woodflooring and accommodation suitable

Explore in luxury

to the tropics. The 45 also has a raft ofnew features, like propeller tunnelsthat provide greater forward thrustand an underwater exhaust systemthat minimizes engine noise and fumes.

Other features contribute to theoverall appeal of the 45. One example isthe recessed cleats in the aft corners ofthe cockpit with their optional clip-oncovers; a design that creates a smoothprofile and prevents fishing lines gettingcaught. Yes, though the 45 is notostensibly a fishing boat, it does it ratherwell – just like everything else.

If sailing is more your thing then thenew Jeanneau 50DS (left) is where you

should be looking. The latest in the SunOdyssey stable from the French designteam maximizes the interior layout forcomfort and opens up to more naturallight. The interior design features whiteupholstery for a pleasing contrast withthe warm tones of solid wood and teakwoodwork.

The Lee Marine team is mostexcited about the new range ofCantiere Delle Marche (CDM) motoryachts. These sturdy steel and alumi-num vessels have something of theretro tugboat look to them but arebuilt for 21st century cruising. TheNauta Air 86 (inset above) is a classic

cut whereas the Darwin 86 is beingtouted as a new species of cruisingmotor yacht with some very sexy,modern lines.

Martin Holmes is motoring up to thePIMEX 2013 boat show in a new CDMand can hardly contain his anticipation.“These are great ocean-going yachts.They'll go anywhere – arctic exploring,Pacific crossings – and they're built tomake trips like that comfortable. Ifyou're out in Phang Nga Bay and fancynipping to the Maldives for a party, youcan do that on a CDM. No problem.”

www.leemarine.com

March 2013 P H U K E T G A Z E T T E 11LUXURY LIVING

+66 (0) 87 894 2929 | contact@bluepointcondos.com | www.bluepointcondos.comCurrently under construction. The developer reserves the right at any time to make changes to the project at its own discretion. Show-unit now open.

Discover Luxury in a Rare Location

Bluepoint offers a touch of serenity in one of the last available

sea view plots on Phuket’s desirable west coast. The multi

and overlook the glittering Andaman Sea. Bluepoint is comprised

of just 20 spacious homes all sophisticated in style and designed

with environmental preservation in mind.

Bluepoint offers an unrivalled lifestyle

choice in a truly magical location.

P R I C E S

S TA R T F R O M

THB16M

SHOW

UN

IT

NOW

OPEN

!

SPEED demons take note: the latestPorsche Boxster and LamborghiniGallardo are now available to burn upthe highways of Phuket, courtesy ofAutoExpress Dot Com.

The mid-enginedBoxster hasbeen a fanfavoriteamongthePorschefamilysince itsintroductionin the mid-nineties.Perhaps surprisingly, the two-seaterBoxster was the first roadster that thecompany designed since the 550Spyder in the 1950s.

If Italian is more your taste, then

Tropical super-carsyou will probably fall deeply in love withAutoExpress Dot Com's latest LamboGallardo

The LP560-4 Spyder is the mostpopular Lambo ever, with over 10,000

built in the first seven yearsof production and gets

its name from theGallardo breedof fighting bulls.

It's hard tostand out whenyou are

surrounded bythe tropical

beauty of a place likePhuket, but if it can be done, then acanary yellow super-car is definitely theway to do it.

www.autoexpress.co.th

March 201312 P H U K E T G A Z E T T E LUXURY LIVING

BLUEPOINT Condo’s principal designer Paul Raffbelieves in sustainable buildings. Bluepoint's uniquecollection of condos, all with sea views, is locatedsouth of Patong and has won several covetedarchitectural awards for its louver facade system.

This system allows privacy without losing theview and reduces cooling costs by shading thehomes from the tropical heat and reducing carbonemissions. In this way, Bluepoint is pioneering greendesign strategies to reduce the overall carbonfootprint for property development in the region.

How did your aims for incorporating green designand architecture into the Bluepoint project begin?

Our green design strategies actually started bythinking from a user perspective in terms ofcomfort and lifestyle.

Part of the comfort has to do with temperatureand fresh air, and some of the lifestyle has to dowith indoor/outdoor living and being connected tothe glorious surroundings.

We immediately saw that passive cooling wasthe key; that is designing the building to maximizecomfort with the windows wide open rather thanrelying on air conditioning.

What was the developer’s reaction to your ideas?The developers immediately saw the benefits in

terms of marketing to an increasingly ecologicallyconscientious public, but also to those sensitive toongoing operating costs.

Is sustainable architecturereally achievable in Phuket?

Do you believe that there is a target audience forthis type of building in Phuket and Southeast Asia?

Bluepoint has been well received, so I believe so.

Did you have to adapt your original ideas due toeither budget or acquisition challenges?

None of our original ideas have been significantlyaltered to work with budget challenges.

Is it a realistic goal to expect homes in the nearfuture to incorporate sustainable design andinteriors, or is it just for those who can afford it?

Environmentally sustainable design principles canbe applied to any project large or small, high-end orlow-end. So it is a realistic possibility that all homescould deploy green thinking to a degree.

That being said, thorough process and advancedthinking take time and investment in expertise. Thismakes it currently only accessible for high-endprojects. Also, if we ideally target zero carbonconsumption that can only be achieved with verysignificant capital costs. This is something we tend towork on with individuals or organizations withappropriately deep pockets.

What is the biggest reward in designing withecosystem preservation in mind?

The biggest reward is knowing that the locationwe build on will be respected and even enhanced.

www.bluepointcondos.com

Phuket Property Review talks toPaul Raff, Principal Designer for

Bluepoint Condos.

FROM VISION TO REALITY: Architect Paul Raff.

March 201314 P H U K E T G A Z E T T E LAW

AS THE real estate industry here islargely unregulated, a purchasershould consider the following priorto purchasing a dream home inPhuket.

Due Diligence on the DeveloperWhen buying a property, espe-

cially off-plan as there is nothing fora buyer to initially see beyond theglossy marketing information, aprudent purchaser should investi-gate the property developer and histrack record. Until construction iscompleted the purchaser is alwaysunder some degree of risk, but riskcan be managed to an acceptablelevel or the buyer may simplypurchase a completed propertyinstead.

Due diligence on title and theproperty

A proper due diligence shouldalways be conducted on the landtitle and building permit for anystructure, and verification of roadaccess should be made. Further, asurveyor should verify the size andparticulars of the location of theland as there are certain areas whereconstruction is prohibited by law.

Legal information on purchase andholding rights to property

Subject to limited exceptions,freehold title to land is generally notavailable to foreigners, althoughforeigners may hold the ownershipof buildings and condominium units.Therefore, acquisition of an interestin land in a foreigner’s personalcapacity must be by leasehold,usufruct, or usage rights for land.

As a result, while houses can bepurchased or built in the name of aforeigner the developer/seller will

remain as theland owner andwill be thepurchaser’slessor under aland lease.

PaymentProperty

under construc-tion generallyrequires pay-ment throughinstalmentsdetermined bymilestones incompletedconstructionstages. Thepaymentschedule shouldaccommodateboth the purchaser’s budget and themilestones themselves to ensurethat the payments fairly reflect thevalue of the works completed ateach stage and are not unduly front-loaded – thus leaving insufficientfunds for the developer to completethe structure.

Contract signingAfter the purchaser has made his

decision to buy, the next step usuallyrequires a reservation through theexecution of a Reservation Form andpayment of a small deposit. Thiscommits both parties to the processand triggers a defined time withinwhich the contract terms should besettled.

The reservation fee should be

refundable incertain circum-stances, forinstance in thecase it isdiscovered thatthere is a defectin title or othermaterial infir-mity in regardsto the property.Ideally, its bestto sign a properagreementpackage with asmall depositheld by anescrow agent ortrustee untildue diligence iscompleted.

Having madea reservation, the parties will needto agree on the sales contracts. Thecontracts will need to be carefullydrafted according to the bestinterests of both parties. Competentdevelopers will have all necessarybase documents in place to ensure asmooth transmission for the pur-chaser and his lawyer to review.

For purchasers, a local attorneyor advisor is beneficial and need notbe expensive as it’s common toagree to a fixed fee rather than anhourly rate basis. A reputable firmwill have no hesitation to provide aninitial free consultation.

Ownership or rights to propertyA properly drafted contract is the

purchaser’s best security, and it’s

best if the contract provides that thepurchaser will hold ownership of thehouse. As for the land, a land leasein Thailand can be registered for aterm of 30 years (50 years forcommercial purposes).

Purchasers’ should require thattheir long term land lease contractsbe renewable and may be trans-ferred to a third party, and that thelease rights are inheritable.

Lesser known vehicles with whichto acquire land interests in Thailandsuch as Usufruct can extend for thelife of the purchaser. Your knowl-edgeable local attorney can furtheradvise.

WarrantiesAny property will suffer small

defects after construction is com-pleted and a good developer willpromptly remedy the same. Whilenew condominium unit purchasescarry a statutory one-year warrantyby law, the purchaser of a villa willhave to rely on his contract.

Typically, the structure itself willhave a two-year warrantee, withnon-structural items (water pumpsand appliances, for example)guaranteed for one year. Thesupplier or manufacturer shouldprovide separate warranties forswimming pools.

The laws in Thailand do notprovide protection against latentdefects (those defects which mightappear at some later stage but whichpreviously were undetectable to thenaked eye) so these need to beprovided for within the constructioncontract itself.

Article courtesy of Friedrich SamFauma, Senior Partner, Director,advisor at International Law Office.

Purchasing a dream home in PhuketWant to put a piece of paradise in your property

portfolio? Sam Fauma looks at the legal aspects ofbuying a home in Phuket.

March 2013 P H U K E T G A Z E T T E 15LOOKING FORWARD

Continued from page 1

WHAT is a bit different is that, in a similar way totourism, the rainbow effect of many nationalities isalso a part of the transactions.

A domino effect has seen the smallish domestictype condos now being replicated into a bit largerand more flash resort units. Price is key and, again,most of the sales action is taking place at the top orbottom ends of the market.

One sure sign of the changing times is theshifting sentiment of property developers who arenow specifically looking at overseas buyers. Recentproduct launches that support this fact are theAmari Residences in Patong (see page 9),Bangtao’s Laguna Shores and the upcoming Sansiriproject at Mai Khao.

What’s key is that many of the new upscaleresort area projects are structured on leaseholdversus condominium title, so they are clearlydirected at foreign audiences as Thai’s generallytend to look for freehold property.

Another key driver of demand is that bothLaguna and Amari are offering hotel managementschemes that are slantedtoward investors and notnecessarily only thoselooking at long term capitalappreciation. Sure, lifestyleis a perk, with free roomnights, but the drivers hereare regular yields throughhotel-type operations andcapturing Phuket’s boom-ing tourist trade.

In much of our talkswith property developers another dimension tothe new island storyline is more regional buyersversus those from traditional markets, like theUK. A potent punch of increasing short haulairlifts, a rising upper middle class and strongAsian economies are delivering a new type ofinvestor to our shores.

As most of us know, the true changing land-scape over 2012 was a staggering number ofRussian and Eastern European tourists. I won-dered what impact was being felt, if any, in theproperty sector. So I spoke to a few key players.

Lyndon Philips, Director of Sales at BanyanTree and Laguna said:“We’ve had a surprisingpick up of sales toRussian buyers optingfor the investmentoption of the purchase.”

Agents are alsoseeing the numbers,Amy Koh from Engel andVoelkers talked aboutwhat type of propertieswere seeing the pick up.

She commented: “We have continued to haveRussian investors in the market and this numberhas been steadily increasing.

“Their main preferences are for beachfrontproperties, or those very close to the beach ordevelopments with facilities. They are looking ata very diverse range of the market, from 2-

bedroom apartments to 4-5 bedroom pool villas.”Language issues continue to be a key for both

tourism and the knock-on property sector. “Hav-ing Russian speaking staff is one key way ofaddressing the growing demographic,” CBREThailand’s Prakaipeth Meechoosarn said.

As I gaze off into the distance at things past,present and future, my bets for the remainder isthat while the omnipresent potential bubble ofthe domestic property surge hovers high over-head, there continues to be too much momentumin Asia Inc at the moment to see things simplystall out.

Mitigating an over-leveraging in the domesticsector this year is a return to a more solid footingas we see wider foreign demand that will offsetlocal risk.

While it’s yet to be seen if the Eastern Euro-pean effect will hit the island’s real estate devel-opments with the same momentum it has hittourism, there is little denying that it’s picking upspeed.

Bill Barnett is Managing Director of the propertydevelopment consulting firm, C9 Hotelworks.

Speakingin tongues

“Having Russian speaking staffis one key way of addressingthe growing demographic.”

Prakaipeth Meechoosarn,CBRE Thailand.

March 201316 P H U K E T G A Z E T T E