![](\"http:\/\/i1.wp.com\/www.siamlandbank.com\/propertynews\/wp-content\/uploads\/2016\/02\/Thailand-Road-in-old-Phuket-Town-is-in-the-midst-of-new-residential-and-commercial-developments.png?fit=740%2C494\")
\nInvestors are looking beyond beachfronts on Thailand\u2019s most popular island
\nThailand Road in old Phuket Town is in the midst of new residential and commercial developments
\nIt is easy to fall in love with Phuket. Its beautiful beaches, the laid-back lifestyle and vibrant nightlife make it a favourite of tourists from around the globe who flock to the island.
\nOn the real estate front, meanwhile, it remains one of Asia\u2019s leading luxury destinations, thanks to primarily to the strength of the holiday villa property segment.\u00a0The island is also an emergent second home or retirement destination, due to its world-class health care centres, golfing facilities, international schools and duty-free shops.
\n\u201cPhuket has the highest concentration of luxury resort real estate in Asia,\u201d says\u00a0Bill Barnett, managing director of consultancy firm C9 Hotelworks. \u201cIt\u2019s a proven market. Its best asset is its location as it is easy for Hong Kong, Singapore or other regional buyers to come for a weekend.\u201d
\nHe adds that Phuket\u2019s geographical advantage also provides added value via private jet access, airlift to key markets and demand generators like super yachts. Despite the high cost of living on the island, compared with other cities in Thailand, Phuket still represents good value for many foreign investors, who\u00a0have a choice of titles: leasehold, freehold through condominium, and even freehold via acquisition by a Thai company.
\nMarina-themed concepts are becoming a hit for affluent foreign investors
\nIt hasn\u2019t all been plain sailing for the island in recent times, however. A perceived taxi \u201cmafia\u201d, proliferation of illegal land titles and issues with waste disposal all appeared to have tarnished its reputation. The 2004 tsunami also did little to boost investment. Still, beachfront locations now\u00a0command price premiums of up to THB110,000 (USD3,045) per sqm for a luxury condominium.
\nMore: The changing dynamics of the Phuket villa market
\n\u201cGenerally speaking you would be looking at double the price per square metre from Phuket\u2019s waterfront properties in comparison to inland assets,\u201d says Dexter Norville, national director of JLL Thailand.
\nThe most most popular beachfront\u00a0locations are situated\u00a0on\u00a0the west coast and the southwest coast from Nai Harn to Mai Khao, with\u00a0the Kamala, Surin and Bangtao areas topping the sales volume list.\u00a0Cape Yamu area has also solidified its reputation as home to\u00a0some of the island\u2019s best high-end villas in recent years.
\n\u201cThe question for Phuket real estate is how to maximise value regardless of location,\u201d says Desmond Hughes, a senior partner at the Hughes Kuprica law firm. \u201cIf you move to Phuket and you really wish to have everything at your fingertips\u00a0and\u00a0live near the beach, then a premium will be paid.\u201d
\nThe quiet Cape Yamu area has solidified its reputation as a hot spot for high-end villa projects
\nAlthough\u00a0the beachfront areas are undoubtedly Phuket\u2019s hottest investment hubs, urban zones such as Phuket Town and Kathdu District are increasingly emerging\u00a0on the radar.\u00a0Shopping options on the island grow ever-more sophisticated and infrastructure improvements, such as the expansion of the airport and introduction of a light rail system, are luring investors away from the coast.
\nMore: What the price of Pad Thai means for Phuket real estate
\nHughes compares the Phuket market to San Francisco, where buyers have the option of living near the ocean, or having a view of the downtown district where urban amenities are easily accessible. However, he believes that Phuket has a ways to go before it can tick all the boxes.
\nDevelopers and investors keep flocking to Phuket
\n\u201cThere has to be better law enforcement especially on the roads and in terms of general misbehaviour,\u201d he says. \u201cThere can be culture clashes between Thais and foreigners, and among foreigners of different nationalities. Beaches need to be kept clean and the way people use the beaches properly organised to keep the Phuket market competitive.\u201d
\nMore: How Phuket\u2019s luxury residential market and marine scene are closely intertwined
\nRoyal Phuket Marina\u00a0is\u00a0one particular luxury residential resort that has thrived despite a lack of beachfront access. Developed by British Asian entrepreneur\u00a0Gulu Lalvani,the multi-phase project is unique in that it offers private berthing spaces for yachts.
\n\u201cAt Royal Phuket Marina we offer true waterfront property, right on the marina front. It is also centrally located and only a few minutes away from Phuket Town and the international airport.\u201d
\nRoyal Phuket Marina
\nHe\u00a0agrees that infrastructure development will be beneficial for intra-island connectivity, helping to bridge the divide between beachfront and urban property.
\nThe presence in the market of strong brands and international investors is also expected to\u00a0keep the market buoyant, therefore, it is likely that more world-class properties\u00a0will be developed\u00a0as connectivity improves further and land becomes scarce in beachfront areas.
\nAnother recent addition to the island\u2019s burgeoning inland market is Nusa Laya, an innovative, three-building development with an integrated commercial hub and its own health care facility. Close enough to the popular Layan Beach, the site is also a only few minutes to urban amenities such as the Bangkok Hospital Phuket.
\nMore: Exclusive report on Phuket court\u2019s controversial property lease ruling
\n\u201cPhuket\u2019s real estate market has the broadest range of properties available in Thailand,\u201d concludes Hughes. \u201cPhuket has developed its urban amenities but retains its island lifestyle and all that goes with it. The choice of how to live in Phuket is also far ranging and this helps encourage foreign investment from those who wish to sample that life.\u201d
\nWith its beautiful beaches complemented by a range of lifestyle perks, the \u201cPearl of the Andaman\u201d shows no sign of losing its precious lustre.
\nWhat you can buy on\u00a0Phuket\u2026
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