Phuket's Villa Management Boom: Plus Property Attracts Foreign Investors

Phuket's Villa Management Boom: Plus Property Attracts Foreign Investors

Discover how Phuket's thriving villa management market is enticing foreign investors and transforming the real estate landscape.

Plus Property sees an opportunity in crafting new business ventures, with Villa Management being piloted in Phuket and targeted at foreign clients.

Ms. Somsakul Limsuttaphan, Deputy Managing Director for the Business Development and Asset Management Department at Plus Property Co., Ltd., stated, “Phuket is among the provinces in Thailand with a world-class reputation and is receiving support from the government as part of a plan to promote Phuket as a model city or ‘Smart City’. Phuket also presents a promising real estate market for investment, long-term residency, and short-term vacations.”

“The current economic conditions in Phuket are benefiting from a recovery in the tourism industry, indicating a growing demand from both Thai and foreign investors, particularly among high-net-worth individuals who are drawn to property projects for their attractive long-term returns.”

“Many real estate developers have expressed interest and launched numerous property projects, with pool villa projects in the Choeng Thale area on the west side of Phuket province being particularly noteworthy. New supply created in 2023 saw a remarkable 96% increase in the Choeng Thale zone compared to other zones in Phuket. Choeng Thale is considered a prime location, highly popular due to its diverse attractions.”

“To illustrate, Choeng Thale can be likened to the initial parts of Sukhumvit Rd. in Bangkok. It is considered a new town district and a lifestyle hub that offers a wide range of amenities, including a large shopping mall, an international school, and a hospital. In the future, several more international schools and large hospitals are set to open in this area.

“Additionally, Phuket has several plans for new infrastructure development projects, such as the Mueang Mai-Ko Kaeo-Kathu expressway, the Kathu-Patong expressway, a light rail mass rapid transit system, a large cargo port for shipping, and an expansion of Phuket airport to accommodate the increasing number of tourists. These development plans have captured the attention of foreign clients, highlighting Phuket's potential as a destination suitable for both short and long-term relocation.”

“Foreigners, in particular, seek residences for their children's education or as holiday homes. The primary group of clients consists of Russians and Europeans looking to escape cold weather at home. These clients now make up 50-60% of the entire clientele in Phuket, a remarkable increase compared to the pre-pandemic share of just 15-20%.”

Plus Property boasts extensive local knowledge, with a presence in Phuket province for 16 years. PLUS began managing projects in Phuket as follows:

2007: The brokerage and PLUS Sole Agent businesses were launched for projects in Phuket province.

2011: Sales management work was undertaken for Sansiri Public Company Limited.

2013: PLUS began offering its "Rental for the Holidays" service, assisting owners in Phuket, Pattaya, and Hua Hin in managing their rental condo, house, and villa properties.

2022: The PLUS Sole Agent business expanded its clientele to include the Luxury Pool Villa segment by managing sales in the Choeng Thale area for local developers as well as for Sansiri Plc.

Upon entering the sales management for pool villa projects, the team conducted comprehensive studies and found that in the 2022-2023 period, approximately 1,200 units of supply were created in the pool villa market. This represented a remarkable 185% increase from 2012. Simultaneously, demand for purchasing and long-term rentals grew by 142% and is expected to continue growing.

The PLUS team also prioritised its customer-centric approach, enabling it to gain valuable insights into customers, including investor and self-use types. PLUS discovered that foreign customers were interested in purchasing a villa in Phuket as a second home, and most were not permanently based in Thailand.

Recognising this new business opportunity, the team launched a Villa Management business, initially piloted in Phuket, offering four types of services:

Property Care Elite: Comprehensive property management, including the employment of housekeepers and security guards, maintenance of swimming pools and gardens, scheduling maintenance for machinery and equipment according to appropriate service cycles, and tenant acquisition to generate income for villa owners. The service fee is charged as a package based on the villa type.

Property Care On-Demand: Tailored property management services, where owners pay only for the specific services they require.

Living Solution: Convenience-enhancing services, including move-in and move-out assistance, parcel sending and delivery acceptance, and security guard services.

Immigration Service: Assistance with the TM30 form for foreign tenants to simplify the process.

In 2024, Plus Property’s brokerage business will be augmented by the new Villa Management activity. This is expected to contribute to the business’s growth rate and enable a 30% growth over the 2023 revenue target. Work will be managed under a tactic based on the concept “Year of Customer: Your Partner in Property Success” where the utmost importance will be placed on understanding the needs of clients. Quality units from many developers, situated in attractive locations throughout Thailand, will be selected and offered. These will include about 10,000 condo, house and pool villa units that clients will be able pick from, so that products that are the best matches for the clients’ requirements may be chosen. Interested potential clients may get more information from the number 02 688 7555 or visit www.plus.co.th

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