4th March 2015
Phuket Premieres New Shopping District of Kathu
PHUKET PREMIERES NEW SHOPPING DISTRICT OF KATHU
Investment opportunities by Sansiri garner 7% p.a. rental yield
The renowned travel destination in Thailand, the island of Phuket, has always been famous for its gorgeous stretches of white sandy beaches. However, surveys and research show that Phuket tourism is no longer purely about the beach, and visitor profiles to the island demonstrate a shift in demand to shopping and entertainment attractions (refer Chart 1 below).
Chart 1: Tourism Attraction Market Share (Phuket 2012 Hotel Market Update, January 2013, c9 hotelworks)
The unabridged success of the existing retail complexes such as Central Festival and Jungceylon have paved the way for a greater focus on “off beach” demand generators, with large retail operators such as The Mall Group (known for the Siam Paragon & Emporium in Bangkok) setting its sights on this tourist hub. An estimated 20 billion baht investment on a 150-rai land plot (60-acres) is slated for the Blu Pearl Phuket, a large-scale retail, hotel and entertainment development by the Mall Group. Projected to operate in 2017, it will consist of a convention and exhibition centre with a resort hotel and a world-class theme park with a total of 650,000 square metres of internal space.
Located just around the corner from the Blu Pearl is key competitor, Central Festival Phuket, which is now constructing Phase III to complement their flagship operation in Phuket. This 10 billion baht investment addition on a 136 rai land plot (54-acre) across from Central Festival will make this Central Groupʼs largest retail mall in Southern Thailand and will usher in a new era of international shopping. Expected completion is in 2017, and it will also include entertainment and convention hall space along with established retail outlets.
As a result of the economic stimulus and the enormous growth potential of this district, Sansiri, Thailand’s leading property developer, has launched a residential development in this town. The dcondo Mine project is located across from the Blu Pearl and is adjacent to a Duty Free Outlet that is currently under construction and that is set to be completed by the end of 2015. This “Boutique Paradise” is a 1 billion baht investment and will showcase a variety of local and international products. Investment in dcondo Mine comes with a 7% p.a. rental guarantee for 1 year and will be launched to investors in Hong Kong, Macau, Taiwan, Singapore, Malaysia, and Manila. The Hong Kong launch will take place on 14 – 15 March 2015.
“As evidenced by the growth in property prices of areas in the vicinity of Siam Paragon in Bangkok, we believe that the effect will be replicated in Phuket with the construction of the Blu Pearl. In addition to capital gains, rental prices are also steadily on the rise for developments in Phuket. This is a city with huge untapped potential for investment growth; its prices and infrastructure are yet to be on par with Bangkok, but the growth factors are developing, if not already present,” states Kingston Lai, CEO of the Asia Bankers Club.
“As central island life on Phuket continues to attract short and long term residents both local and foreign, the upcoming retail and commercial development anchors will complement the property value uplift in the Kathu area. This domestic demand coupled with strong tourist traffic throughout the year is a true testament to the district’s transformation and unfolding future value,” added Mr. Cobby Leathers, Head of International Marketing, Sansiri Public Company Limited (Thailand).
For further information on Sansiri, please visit www.sansiri.com.
About Asia Bankers Club
The Asia Bankers Club is an investment club for banking and finance professionals in Asia. With a vast member base, the Asia Bankers Club organizes events for its members and provides physical assets for investments, such as properties, fine wines, art, timepieces, and collectables. Our members are from top tier investment, private and consumer banks, asset management companies, private equity firms, hedge funds, and sovereign wealth funds primarily located in key financial centres.
About Sansiri PCL
With over 271 projects across Thailand, including a residential project in Kensington, London, Sansiri is widely regarded as Thailand’s leading developer of quality houses, townhouses and condominiums.
We do not simply build brick and mortar residences, but instead provide homes with carefully designed spaces, where every detail is thoroughly considered without compromising aesthetic and function in order to cater to families of all sizes.
Setting them apart from other developers, Sansiri offers a home and lifestyle experience, complete with consistent after-sales services and Sansiri Family privileges to ensure the perfect living experience for all residents.
About dcondo Mine
- Freehold condominium from HKD525,000 (studio) and HKD1,200,000 (2-bed)
- 50% deferred payment option provided by the developer
- Rental guarantee of 7% p.a. for year 1 (optional), expected rental yield 7% p.a. from Y2 onwards
- Approximately HKD1,800 psf
- Completed and brand new with fully furnished and designed units
- Full facilities including a 70m swimming pool, gym, club house, 24-hour security and car park
- The project is situated in the heart of the new shopping district of Phuket (Kathu) and close to 2 golf courses, the marinas and the beach (all between 5-15 minutes away)
- 14-day free use for owner during year 1 and thereafter at the decision of the owner themselves
- 1 time complimentary lifestyle package for owner to choose from, which includes golf and private boat trip. Other services include complimentary airport transfer, couples spa and daily cleaning services during your stay
- Great potential capital appreciation of dcondo Mine due to its strategic location which is next to the new Duty Free Phuket, adjacent to Blu Pearl Mall & Theme Park and 5-minute access to Patong after the completion of the tunnel
Above: The design of the spacious 70-meter long swimming pool is inspired by streams that used to run through the ancient mines, and is accessible from all areas of the project.
Above: The property is surrounded by Phuketʼs natural landscape with breathtaking panoramic views – a serene lake in the foreground.