According to market research released yesterday by consulting firm C9 Hotelworks, resales highlighted the sector, bolstered by Asian wealth, which is leading the global storyboard.
Managing director Bill Barnett said a growing appetite by the rich and famous to “supersize” saw Natai’s Beyond Villa trade for a reported $24 million. “The profound ‘failure to launch’ during the past 24 months by developers has resulted in a reduced inventory of 77 new properties with a mar?ket value of $329 million,” he said.
“A switch effect into the secondary market has seen resales eclipse 83 per cent of total volume.
“Viewing broader trends in supply and demand, take-up rates for off-plan units remain soft, with the possibility of prod?uct fatigue setting in. New entrants and fresh products that could whet demand are at present absent from the mix,” he said.
Growing investor confidence in hospitality projects was spilling over to the residential market and the stage is set for some “marquee” suspended projects to be restructured and re-enter the supply stream, he said.
Research data indicate the geographic source of buyers is pragmatically shifting with the changing fortunes of the world’s economies. A lead indicator has Chinese and Indian investors showing early signs of sales activity in Phuket.