Luxury housing developments in resort areas across Southeast Asia are witnessing a surge in interest from affluent buyers, particularly from China and Russia, who are eyeing long-term stays in these picturesque locales. The Thai island of Phuket is a prime destination for such investments, with prominent developers like Central Group venturing into the luxury residential market.
One notable project by Central Group involves the construction of approximately 190 units of luxury condominiums in Bang Tao Beach, Phuket, with prices starting around 12 million baht. These properties, developed under the banner of The Standard, offer hotel-like services and amenities tailored for extended stays in resort areas.
The trend of branded residences is gaining momentum, with other ventures like Le Meridien in Danang, Vietnam, and Anantara in Bali, Indonesia, offering similar luxury accommodations. According to Savills, Asia accounts for over 20% of the global market for branded residences, with Phuket emerging as a hotspot with 22 ongoing projects.
Luxury resort developer Banyan Group envisions Phuket as a global community hub, with plans to develop up to 6,000 condos and residences in the Laguna section. This expansion aims to diversify Banyan’s income sources, especially following net losses in recent years.
The surge in residential development has led to concerns about environmental impact and market stability. The transition from agricultural land to real estate developments raises questions about diminishing green areas, while some experts warn of signs of a potential market bubble as sale prices double.
The influx of Chinese and Russian buyers, driven by favourable visa policies and geopolitical events like Russia’s invasion of Ukraine, underscores the growing appeal of Southeast Asia’s warm climate and investment opportunities. Thailand, in particular, has seen a significant increase in long-term residential visas for affluent individuals and professionals, reflecting the country’s efforts to attract high-net-worth individuals.
While luxury housing developments in Southeast Asia continue to attract investors and buyers worldwide, stakeholders must navigate environmental concerns and market dynamics to ensure sustainable growth in these resort areas.
Source: Nikkei – Property- Phuket
