Phuket, with its stunning white sandy beaches, warm climate, and rich culture, draws both tourists and investors. One modern trend in Phuket's property scene is branded residences, offering a blend of homely comfort and comprehensive hotel services. In this article, we will delve into what these residences are, where you can buy such properties in Phuket, and weigh the pros and cons of these apartments in Thailand.
Content:
- What are branded residences?
- Options and pricing for branded properties in Phuket
- Pros and cons of hotel-managed apartments
What are branded residences?
Branded residences are properties co-developed with specific companies and available on the open market. While a brand can solely be a hotel, these projects often collaborate with renowned design agencies or car companies. Typically, they oversee architectural design, services, layout, and aesthetics of the complex.
In Phuket, Singaporean entrepreneur Ho Kwon Ping pioneered branded property, initiating the upscale Laguna complex on a vast plot near Bang Tao beach. Today, this area has transformed into a vibrant city, home to the island's top hotels. Hotel chains like Best Western, Wyndham Group, Renaissance, Sheraton, Hyatt, Mövenpick, and others also have a presence.
Options and pricing for branded properties in Phuket
The first option, perfect for rental income but not suited for long-term living, are studios in Phuket's five-star hotels. Starting at $100,000, these 30–40m² properties feature prime views. They are fully furnished to hotel standards, with all components and finishes approved by the managing company.
Another attractive option with great resale potential are 2- and 3-bedroom apartments. Starting at $300,000, prices vary based on location and project features. These are ideal for affluent foreigners, often bought in early construction stages, with options for redesign and combining adjacent studios. The result is a spacious apartment with 2 or 3 bedrooms, a living room, an office, and a private pool.
Let's explore some of Phuket's best offerings.
Excellent branded properties are found in the MGallery Residences near Kamala Beach in the up-and-coming MontAzure area. The complex consists of 2-story buildings, each housing 2 apartments per floor. Buyers can purchase an entire level or building, transforming it into a luxurious villa.
Another project at Kamala Beach is designed by Tierra Design in collaboration with Twin Palms. This complex offers elite 400 m² apartments. Buyers can join a guaranteed income program (5% annual yield) or opt out to live in their residence.
Laguna complex near Bang Tao Beach is another popular choice for branded apartments. This well-developed area offers various property types. For instance, the five-star Angsana Hotel offers 200 m² penthouses with pool terraces. Owners can choose to live there permanently without joining the rental program or stay at the hotel for 60 days a year, maintenance-free, while earning 5% annual rental income.
Additionally, villas in the Banyan Tree resort, priced over $1.5 million, offer homes with modern amenities, private terraces, pools, and traditional Eastern-style designs.
Pros and cons of hotel-managed apartments
Like all types of real estate in Thailand, branded properties have their advantages and disadvantages.
Advantages of hotel-managed apartments:
- Developed infrastructure. Purchasing property in elite residential development projects in Thailand grants access to all hotel amenities, including pools, spas, gyms, restaurants, playgrounds, relaxation areas, and coworking spaces.
- Service. Owners of branded residences are free from daily hassles. Issues like air conditioning repair, grocery delivery, regular cleaning, and round-the-clock concierge services are swiftly addressed.
- Rental programs. Standard rental income in Phuket ranges from 5–8% annually, depending on the complex's status and the property acquired. Branded apartment owners enjoy favourable rental program terms, with the option to sign multi-year agreements, opt out, and rejoin later. Furthermore, unrented properties are always monitored and maintained.
- High construction quality. Hotels partner with reliable developers to ensure five-star standards.
- Prestigious locations. Branded living spaces are often situated in prime areas, enhancing the property's liquidity.
Disadvantages:
- Cost. Hotel-managed apartments or villas in Thailand are typically pricier than standard properties.
- Restrictions. Owners cannot independently rent out their apartment under the hotel's brand. Moreover, for those participating in rental programs, the apartment's interior must adhere to hotel standards and cannot be customised. However, owners are free to manage their property, including selling, gifting, or bequeathing it.
Branded hotel residences in Phuket represent a real estate trend that combines the comforts of home with the high-class advantages. Nevertheless, before purchasing such apartments in Thailand, it's crucial to study contract details, rental conditions, and all financial nuances. It's also important to remember that despite numerous benefits, hotel residences have their limitations and peculiarities.