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FIABCI World Congress:
The Phuket PropertyMarket post tsunami
29 May 2006
CB Richard Ellis | Page 2
The Phuket Property Market
The tsunami in Phuket
Thailand was the least affected of countries hit by the Dec. 04 tsunami
Phuket far less affected than Khao Lak Physical damage restricted to immediate
seafront in limited number of west coast beaches Fast and efficient response Island operational within days 90% of physical damage repaired within 3
months
CB Richard Ellis | Page 3
The Phuket Property Market
Effects of the tsunami
Impact of media coverage during the tsunami
Drop in national, regional and global tourism Weak international communication campaign
on Phuket’s recovery Limited new feed of property buyers Buyers delay trips to Phuket hence delay
purchase
CB Richard Ellis | Page 4
The Phuket Property Market
The property market pre tsunami
Phuket as a key resort property market in the region, set for long term growth
Phang Nga as a tourist destination with few residential property projects
CB Richard Ellis | Page 5
The Phuket Property Market
The property market pre tsunami
Laguna PropertySri Panwa
CB Richard Ellis | Page 6
The Phuket Property Market
Recovery process
Not a drop in the market, rather a long low season
Education campaigns overseas Communication on good performances:
reassurance factor Strong offering Phuket’s Unique Selling
Points
CB Richard Ellis | Page 7
The Phuket Property Market
Recovery process
Patong Beach, 4th Feb. 2005 Khao Lak Beach, 4th Feb. 2005
(in front of the Merlin Resort)
CB Richard Ellis | Page 8
The Phuket Property Market
Phuket Unique Selling Points
Global access World-class facilities: hospitals,
international schools, golf courses Stunning beaches Developed infrastructure Low cost of living Thai hospitality in Thailand’s premier
foreign resort
CB Richard Ellis | Page 9
The Phuket Property Market
The property market post tsunami
Buyers and developers remain confident in Phuket’s potential
No desperate sales or discounts Active projects closing sales in Q1, 2005 Easter 05, Dec. 05 & Easter 06 particularly
active New benchmark prices achieved
CB Richard Ellis | Page 10
The Phuket Property Market
Projects selling
Royal Phuket Marina Bel Air Panwa
Cape Yamu Layan Estate
CB Richard Ellis | Page 11
The Phuket Property Market
2006 - Market Overview
Demand Rising demand More global buyers
Supply Numerous new projects New areas actively developed More professional development Wide spectrum of properties on offer
CB Richard Ellis | Page 12
The Phuket Property Market
Examples of New Supply
Project Name : Trisara Phase
C
Type : Villas
Location: Nai Thon
Price : 105 - 211 million
baht
Source: CB Richard Ellis Research
CB Richard Ellis | Page 13
The Phuket Property Market
Examples of New Supply
Project Name : The Bay
Type : Villas
Location: Cape Yamoo
Price : 23.5-60 million baht
Source: CB Richard Ellis Research
CB Richard Ellis | Page 14
The Phuket Property Market
Examples of New Supply
Source: CB Richard Ellis Research
Project Name : 8th Heaven
Type : Villas
Location: Phang Nga
Price : from 80 million baht
CB Richard Ellis | Page 15
The Phuket Property Market
Examples of New Supply
Source: CB Richard Ellis Research
Project Name : The Heights
Type : Condominium
Location: Kata
Price : 15-37.5 million baht
CB Richard Ellis | Page 16
The Phuket Property Market
Prospects
Continuous improvement of facilities & infrastructure
Good capital appreciation More projects to be launched Strong demand to continue Development of property rentals
CB Richard Ellis | Page 17
