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THAILAND’S tourism boom is driving lifestyle investments as travelers turn to staying longer in the country. The main beneficiary is Phuket, where arrivals continue to soar, with a 23% year-on-year increase in 2024 to a total of 8.65 million arrivals registered at Phuket International Airport.
The key emerging trend, according to a new report by leading hospitality and real estate consultancy C9 Hotelworks, focuses on the rental market, which is seeing a significant increase in investment from regional Asian markets into resort-style condominium units in prime locations.
“The shift we are seeing is that tourism is driving a long-stay rental market on the island,” said Bill Barnett, managing director of C9 Hotelworks, speaking at the C9 Sessions event. “This is the destination’s marketing funnel for a residential-led hospitality market, and regional buyers from Thailand, Singapore and Hong Kong are leading the way.”
The surge in interest in lifestyle investments is not lost on some of the island’s most successful developers, with Hong Kong’s Lan Kwai Fong (LKF) Group, famous for its Andara Resort & Villas development in Kamala, launching a sister brand, Sudara, in the hot beach district of Bangtao.
Sudara Residences Phuket is an example of the new generation of resort-style developments attracting regional buyers seeking lifestyle options and rental yields. It offers 220 bright one-to-three-bedroom residences ranging in size from 52 to 144 square meters, including options with private pools.
Sudara’s main clubhouse, the Pavilion, features outdoor pools, an alfresco lounge with cabanas, a kids’ club, fitness center, Silk Café, yoga room and co-working areas, all supported by management and concierge services from the ultra-luxury Andara Resort & Villas. The project is scheduled for completion in 2027.
According to Dr. Allan Zeman, Chairman and Founder of LKF Group, said our Thai investment story started with Andara and we have now come full circle. We have gone from real estate to hospitality and now back to residential with Sudara.
“We see Thailand’s tourism momentum as a key catalyst for growth to capture the twin synergies of hospitality and residential, and the increase in regional buyers is playing a key role in our success,” he affirmed.
Phuket is experiencing strong demand from Asian buyers, particularly from Hong Kong where the LKF Group is headquartered. Sudara Residences Phuket reports that most of its regional sales come from Asian residents and expatriates, driven by factors such as affordability and accessibility.
The C9 Hotelworks report shows that for the equivalent price of a two-bedroom condo in Singapore, investors can pick up a five-bedroom pool villa in Phuket, while a luxury car is around 60% cheaper in Thailand. For families, international school fees in Phuket are on average 42% lower than in Singapore.
With high taxes and stamp duty on second homes in Singapore, and nearly 150 weekly flights now making the two-hour hop between Singapore and Phuket, the benefits of relocating or investing to the shores of the Andaman Sea are clear.
“Our forecast is that global and regional migration trends will continue to drive growth in investment property. In a volatile market, investment flight to Thailand as a safe haven is an attractive long-term proposition for people seeking recurring income and stabilized returns from long-term leases,” concluded Barnett. [sources/photo special]
