Phuket Resort Properties

Recently, international hotel management companies have entered the market of mixed-use developments and are trying to get a share of the lifestyle investment market.

These international brands are developing new luxurious hotels and resorts all over Asia, including Phuket, Bali or Singapore. What used to be an investment where capital growth was the only goal, has now changed to be an investment which can also generate good rental yields, adding an extra factor to the attraction of investing in such property.

These developments offer a wide range of choice, from villas with absolute privacy and swimming pools, to condominiums with shared facilities and the possibility of having in-room services.

If you are looking to buy into such hotel managed products you need to weigh the relative merits of a shorter return on investment scenario with ongoing rental returns. One additional benefit is that as an owner you have usage for a certain period of time each year. Projected rental returns in Phuket average 6-8% per annum.

Some developers will offer guaranteed rental returns for a certain period of time to start with. It sometimes goes as high as 10% per annum. There are re-sales of this type of property available. And although this type of resort style property is still quite new to the island, some re-sales of this type of properties have generated a capital appreciation of more than 100% over only 3-4 years. Investing in a resort style property is not suitable to everyone. People looking for retirement homes or who want to stay longer periods of time can be put off by the ongoing monthly charges for the use of the common facilities like swimming pools, gym, tennis courts, shuttle services, etc.

If you are looking for a lifestyle property, branded developments offer hassle free management while your (optional) rental returns are generated through worldwide sales and marketing networks.