Land Investment Opportunity
Investing in prime land in holiday resort areas is always a smart investment. The continual increase in the number of global citizens taking holidays and travelling is one of the only growth megatrends that investors can be certain about in today’s volatile investment climate. The greater Phuket area, as tourist destination located within 6 hours flight time of a third of the world’s population, will benefit from this megatrend as much as anywhere else on earth.
The land in question is a prime piece of absolute beachfront land which has amazing panoramic sea views of the Pha Nga Bay located on the beautiful island of Koh Yao Noi, 15km off the coast of Phuket. The size of the land is 11.2 rai (1 rai = 1,600sqm / 0.4 acres) elevated rolling up a gentle hill on the most attractive beach on Koh Yao Noi.
The prime land plots on Phuket that have the holy grail combination of having both beachfront and sea view; are all developed. Normally developers are happy with either beachfront or sea view, but this land has both.
At PhuketCondo.Net, we spend a considerable amount of time hunting down and researching property investment opportunities and so it gives us pleasure to be able to present this land investment opportunity that could provide a capital gain of 100% or more.
Koh Yao Noi has 6,000 inhabitants and is 4 x 12 km in size and is connected by speed boat (30 mins) from Phuket. The island has a developing tourist trade and to date has three luxury resorts and a greater number of budget and mid range accommodation options.
The island has laid back charm and a slow pace of life which captivates visitors. Koh Yao Noi is a popular destination for sailing boats and motor yachts navigating around Pha Nga Bay. Being in a bay the water is very calm without swell allowing for ideal sailing and boating conditions.
- 11.2 rai
- Prime beachfront & sea view
- 30 mins by speedboat from Phuket
- Suitable for villa development or resort
- 300 metres from pier
- Pre-approval obtained for neighboring area to be developed as marina
- For sale at 90m THB / 2.53m USD
Why is this land a good investment?
A major factor which makes Koh Yao Noi attractive for future development is the fact that it is no longer a short journey to many of the resorts on Phuket from the airport. Traffic on Phuket is becoming a problem. Five years ago it took one hour from the airport to get to the south of the island (Kata, Karon, Nai Harn and Rawai), today the journey takes around one and a half hours and in five years time it could very likely take two hours. Despite appearances, fundamental solutions to Phuket’s increasing traffic woes are not forthcoming. How long will it be before the traffic jams on Phuket become similar to those in Bangkok?
Koh Yao Noi is one hour away from Phuket airport and that won’t change. The road from the airport to the port passes through a very quiet area and 30 minutes is a conservative estimate of the journey time. The transfer by speedboat from the port directly to the land on KYN remains consistent at 30mins.
There has been pre-approval for a marina on Koh Yao Noi to be built 300 meters away from the land. There is already a pier so sea transfers are already convenient. A marina would be a boon for owners of any villas developed on the land or would mean an increase in demand for rooms at any resort.
An investment in this land would allow flexibility in terms exit strategy as there are several types of exit strategies that will grant a healthy capital gain, for example;
- Buy and hold. If there is no pressure to release capital invested, this would be an advisable strategy in order to achieve a sale at a targeted price. The longer the land is held onto, the more it will rise and the period when land values will rise quickly looks to be fast approaching especially considering the factors stated above.
- Subdivide and re-sell individual land plots. Converting the 11.2 rai of land into smaller plots, creating a separate land title for each, which could then be sold off, is a highly profitable strategy which could easily achieve a 100% capital gain.
- Resell or broker land to resort or hotel chain. Hotels and resorts are always keen to secure prime beachfront land and property.
- Resell or broker land to a property developer. Given the prime nature of the land, there are a variety of types of development projects that would be suitable.
Over recent years investors have made extremely profitable investments in land on Phuket but as the market has matured the really profitable opportunities have largely dried up. The best land investment opportunities are now on islands and locations close to Phuket and this is the pick of them.
Please do not hesitate to contact us directly if you would like to further information. We provide free consultation and advice and guide our clients every step of the way through the purchasing process.
Alex Seago is the Managing Director of Phuket Condo Co. Ltd. You can check out his profile here: http://www.phuketcondo.ru/about-us/