Demand for luxury villas in beach destinations from Thai business owners remains strong despite unfavourable sentiment as they take advantage of low interest rates.
Prapavadee Sophonpanich, founder and CEO of luxury resort home developer Ideas 1606 Co, said business owners and executives are always on the lookout for a resort home in a beach destination to buy.
"When interest rates are low and the trend continues, it is easier for them to buy a resort home," she said. "If it's in an emerging location, their decision will be quicker."
Last week, Ideas 1606 launched a luxury villa project, Veyla Natai Residences, worth 1.2 billion baht on Natai beach in Phangnga, exclusively for its existing customer base and clients of property consultant CBRE Thailand.
Ideas 1606 recorded six units sold worth a combined 490 million baht from a total of 15. Four were bought by CBRE customers who are business owners in consumer products and industry. The other two were acquired by buyers at the developer's two luxury villa projects in Khao Tao and Cha-am, launched in 2009 and 2014 respectively.
Veyla Natai Residences will occupy a 5.8-rai beachfront plot. It will consist of 15 villas, comprising seven two-storey beachfront units priced at 89 million baht a unit and eight three-storey units priced at 67 million baht a unit.
"We have looked for a beachfront plot in Natai beach for six years to develop luxury villas," Mrs Prapavadee said. "When the destination draws new high-end hotels, our decision to buy a plot becomes faster."
Aliwassa Pathnadabutr, managing director of property consultant CBRE Thailand, said Natai beach is an emerging location for villas as popular beach locations in Phuket, like Kamala and Bang Tao, become crowded.
The amount of villa supply of all grades, both beachfront and non-beachfront, newly launched in Phuket each year is just 100 units. During 2004-20, villa supply in Phuket is estimated at 4,861 units.
"Natai is booming after previously being well-known only among those buying a beachfront plot in a quiet location to build their own house on," Ms Aliwassa said.
Founded in 2008, Ideas 1606 launched its first project, Veyla Khao Tao, in 2009 and Veyla Cha-am Residences in 2014 with units priced at higher than 50 million baht. Both projects sold out.
"We have no pressure to develop projects every year, but we need to select a good location to do so," Mrs Prapavadee said. "Next destinations we are interested in are Indonesia and Myanmar."