Looking closer though clearly it's a stretched horizon, while Phang Nga's success has been its relative short
driving distance to Phuket coupled with an international airport and a high brand concentration of hotels,
critical mass of infrastructure and demand generators such as marinas, golf courses, schools and hospitals. Much of this is true for Samui as well, though to a lesser extent.
Airlift for tourism remains a key component and unlike perhaps resort development in more remote
locations such as Koh Kood, having twin airport access remains a huge plus. Hua Hin with its push down
into Pranburi might draw some insight as well looking at how its lower density model while prospering has
yet to see larger scale development come its way.
Adding into the witch's brew of speculation remains that Phuket and Samui are anomalies amongst
Thailand's property markets. They are highly or perhaps you could argue over leveraged with foreign buyers
to the tune of 70-80% of resort grade property.
Hua Hin and the eastern seaboard cater to larger domestic markets who rely on a vast major of purchases
which are financed, but for Thai families looking for a second holiday home its just a matter of jumping in
the car with the kids and away you go.
Looking at Surat and destinations further south, tourism is going to be a lead indicator on higher end real
estate if it will be a reality. Branded resorts and the attached perks are what will eventually draw in overseas
investors. So for those of you looking to buy in this area, history has shown true value in dynamic drivers as
in ocean front land but an existing menu of hotels, attractions and tourist services need to first get up and
running. While this may be the real deal or just a flash in the pan, one thing is for sure there are no short
cuts in the quest for capital appreciation.
Greater Phuket appears on the third Friday of each month.
