Plus Property Welcomes Phuket Sandbox Measures

Highlights Investment Opportunities in Real Estate with 6-10% Rental Returns

 

Plus Property has responded positively to the Phuket Sandbox measures, stating that the reopening of Phuket will create opportunities to drive the tourism economy, attracting foreign visitors back to the country, which will stimulate the recovery of businesses and employment, along with subsequent investments. The real estate sector is expected to benefit, increasing opportunities for buying and renting properties, especially for foreigners looking for vacation homes, tourists, and expatriates moving to work and business investors seeking second homes in Phuket. Under normal circumstances, real estate investments in Phuket yield rental returns (Rental Yield) of 6-10% and capital gains of about 5-10%. Additionally, there are supportive factors such as declining property prices and special promotions that help reduce costs. It is believed that with appropriate and robust supporting measures, the economy and investments in Phuket will recover.

Ms. Somsakul Limsoothapan, Deputy Managing Director of Business Development and Asset Management at Plus Property Co., Ltd., an expert ready to meet all real estate service needs, revealed that the Phuket Sandbox measures, which will open Phuket to foreign tourists on July 1, are seen as a positive sign to stimulate the tourism economy in Phuket to recover. This will undoubtedly impact employment and the recovery of other businesses in Phuket. The real estate sector will also benefit. According to Plus Property's real estate consultancy portfolio for buying, selling, and renting, 88% of condo tenants in Phuket managed by Plus are foreigners, while 12% are Thai. If the Phuket Sandbox measures succeed and can effectively welcome foreign tourists in the long term, it will certainly lead to increased demand for rentals from foreigners and a resurgence in purchasing power.

For real estate investments aimed at renting and reselling in Phuket, Plus Property's data shows that foreign tenants tend to rent long-term, especially during the high season from October to February. They mostly choose condominium projects with beautiful common areas and complete amenities, such as large swimming pools, and prefer units with nice views, typically around 29-30 square meters, fully furnished with appliances, and additional items like dishes, cutlery, and cooking equipment. They also prefer projects located in the city for convenient access. For working tenants, in addition to long-term rentals while working, there is also a trend of purchasing for personal use and future rental investment, often selecting condominium projects near their workplaces and close to amenities like convenience stores and restaurants. Most prefer units of 29-30 square meters with complete amenities, including furniture and appliances. Under normal circumstances, the rental yield for condominiums in Phuket is approximately 6-10% per year, and capital gains are about 5-10% per year. Although the COVID-19 pandemic may have reduced returns, it is expected that the situation will gradually recover and improve as it returns to normal after the Phuket Sandbox measures and the plan to reopen the country within 120 days.

Additionally, with Phuket's potential, ranking among the top 10 in the report of the 30 best travel destinations in the world for 2020-21 (The World's 30 Best Places to Visit in 2020-21) based on votes on the U.S. News & World Report website, and with public and private investment budgets exceeding 97 billion baht since 2015, focusing on developing infrastructure such as roads, airports, and rail systems, as well as large private sector projects like Blu Pearl, Central Festival Phuket, Central Phuket Floresta, and King Power, it reflects the readiness for business and industrial investments. It is believed that this will attract tourists and business professionals back to the area.

“Phuket is a tourism city with potential, equipped with complete infrastructure, transportation, and amenities, moving towards becoming a smart city. The Phuket Sandbox measures will help drive the recovery of the Phuket area. The real estate investment sector is also interesting, especially for investors looking to rent or buy for future resale, with returns higher than investments in Bangkok and positive factors regarding costs, as many projects currently offer special promotional prices. Plus Property is also prepared for the reopening of Phuket, with 100% of Plus staff vaccinated, including the property management team and sales staff, along with COVID-19 prevention measures for visitors to the projects, including temperature screening, registration points, provision of masks, increased cleaning frequency by housekeeping staff, and installation of air sanitizers in the sales offices set to spray disinfectant periodically to accommodate investors and those interested in the residential projects managed by Plus,” said Ms. Somsakul.