The number of tourists coming to Phuket continues to increase. In fact, last year the island welcomed a total of 8.4 million visitors which means that even the luxury 5 star resort in Phuket is fully booked with guests. This is the main reason why the condominium market in the area is changing. Condo units used to serve as holiday homes for the owners but now these are converted into sources of passive income.
Fifteen years ago, CBRE is the only agent handling Allamanda which is located in Laguna. This is the very first huge resort condo project that gives buyers the chance to enrol in a rental program. This means that they allow their unit for the entire year to be rented while they receive rental revenue in return. The right is then passed on to whoever is renting the unit but only for a limited time during their stay. This setup was developed in 1993 and the company, at that time, had no idea that fifteen years later the same setup will become the trend in the resort condominium market of Phuket.
The Asian market faced a financial crisis in 1997 but after it has recovered the development of resort properties in the area resumed together with constructions of condominiums and villas. Majority of the buyers back then are foreign nationals looking to have holiday homes in the island but the trend has changed lately because the usual buyers are not those who are expecting to gain from the yields the property could bring.
In order for the projects to follow this new setup, there must be a management firm that will market as well as manage the property during its day-to-day operation – a setup similar to a hotel. The best properties in the area are able to become successful in this front because they are constructed side-by-side with a hotel. These condo units are then added to the available rooms of the hotel under the same management.
There are those that still prefer to experience the best by renting luxury 5 star resort in Phuket because the rate of these accommodations are still cheaper compared to the ones they have at their home country. This is one of the charms of Thailand which makes tourists keep coming back.