PHUKET, 16 December 2019: Phuket’s expansion of holiday residences and hotels continues with the latest develop “Radisson Phuket Mai Khao Beach” opening a sales gallery to woo investors.
Despite the warnings that the island is already oversupplied, the building boom continues to turn the once beautiful island into an urban squaller of coastal construction where greed overrides sustainability and environmental concerns.
Radisson hired to manage the property’s residences, and hotel units will lead the sales of what is described as a premium hotel and residence costing THB1,600 million to build.
Under development on a 7,000 square metre plot of land, the property developers are targeting both Thai and foreigners for the sale of residences.
Radisson says it is convinced that Phuket remains an island of high potential and is confident the project will gain the attention of both investors and tourists.
Radisson Phuket Mai Khao Beach development is a collaboration between Thai-Chinese Property Holdings and Aplan Properties. It is located on the island’s northwest Mai Khao Beach, close to the Phuket International Airport.
It consists of eight low-rise buildings, featuring 222 rooms and suites with 110 units up for sale. It even claims to offer freehold ownership to foreigners under its license described as a “Commercial Condominium”.
The hotel residence will be operated by Radisson Hotel Group under “Radisson” while sales and marketing will be managed by DMRD Asia.
Described as a hybrid ‘Condotel,’ the concept is trending in Phuket, Pattaya and even in Bangkok in response to so-called investor demand.
According to DMRD, the demand for Condotels is expected to continue in the next few years, especially in Phuket. By the end of 2021, more than 3,000 Condhotel units could exist on Phuket island a prospect that will alarm traditional hotel keepers and lobby groups that would like to rein in Phuket’s tourism developments. The island is fast following Pattaya on a disastrous tourism journey that will ultimately threaten the natural beauty that made Phuket famous.
Gaining a slice of the Radisson Phuket Mai Khao Beach real estate pie will require an investment of THB 7.2 million per residence unit with freehold ownership and upscale operations.
The promoters claim it will give investors a 6% yield in the first three years and by the fourth year the start at a healthy 6% based on occupation rates. It is due to open in 2022.