Thailand’s Branded Residences Boom Expands to Emerging Destinations

Thailand’s Branded Residences Boom Expands to Emerging Destinations

Thailand’s Branded Residences Boom Expands to Emerging Destinations

Thailand's branded residences sector is flourishing, extending its reach to lesser-known locales such as Sichon. This expansion is fueled by the success of the tourism industry and the rising land prices in well-established areas, presenting profitable opportunities for investors.

Banyan Tree Residences Sichon’s villas present an exclusive prime beachfront view

Bangkok – Thailand’s Branded Residences Sector Spreads Nationwide

Thailand's booming branded residences sector is rapidly spreading across the country, unlocking new investment opportunities in alternative destinations that boast the kingdom's renowned natural beauty. In contrast to established areas like Phuket, land prices in these emerging destinations remain significantly lower.

Tourism: The Driving Force Behind the Expansion

The robust growth of Thailand’s tourism industry, which welcomed over 40 million international visitors in 2019 and is projected to reach 80 million by 2028, is a key driver of the branded residences market. Affluent travelers are increasingly seeking to transition from mere visitors to long-term residents of Thailand. This trend has spurred a real estate surge in areas such as Phuket, which now ranks as the fourth largest market globally for branded residences, trailing only Dubai, New York City, and Miami.

Discovering Hidden Gems: New Investment Horizons

As land prices in popular tourist spots escalate, developers and investors are turning their focus to hidden gems, particularly in picturesque coastal regions. Banyan Group, the world’s fifth-largest branded residences operator according to Savills Research, has recently partnered on a new project in Sichon, a beachfront area in Nakhon Si Thammarat province. Set to launch in June 2024, Banyan Tree Residences Sichon is anticipated to attract entrepreneurial buyers with its natural allure, superior build quality, brand reliability, and cost-effective investment potential.

Banyan Tree Residences Sichon’s private beach front pool villas

Comparative Advantage of Emerging Locations

Investing in emerging destinations like Sichon becomes especially attractive when juxtaposed with the high land prices in established markets. For instance, beachfront land in Bang Tao, Phuket, has surged to over THB 100 million per rai, a stark increase from THB 7.5 million in 2004. This significant price disparity highlights the substantial upside potential for early investors in new locations, where entry costs are far more accessible. Forward-thinking developers such as Urasaya Property, the award-winning developer behind Banyan Tree Residences Sichon, are keen to unveil the hidden gems of Sichon.

Insights from Industry Leaders

"The remarkable rise in land values in established markets is notable, yet the opportunities in these new areas present significant growth potential," stated Ravi Chandran, a long-time resident of Phuket and Executive Director of Urasaya Property. "Early stakeholders in regions like Sichon can expect long-term benefits from the first-mover advantage."

The newly opened international terminal at Nakhon Si Thammarat Airport, combined with trends such as the “work from anywhere” movement and pressures of capital flight, are further driving demand for Sichon. The area also offers access to international education, medical services, and retail outlets within a 30-40 minute radius, while maintaining the natural beauty and cultural authenticity that originally attracted global travelers to Thailand.

Strategic Location and Development Potential

Nakhon Si Thammarat is conveniently located near Phuket and Samui. Travelers can drive from Phuket to Krabi, then to Nakhon Si Thammarat, and take a ferry to Samui. "This entire region of southern Thailand holds immense potential, and we aim to contribute to its development," said Stuart Reading, Managing Director of Banyan Group Property Development.

Banyan Tree Residences Sichon

Role of International Hospitality Brands

International hospitality brands like Banyan Tree have played a crucial role in the success of Thailand’s branded residences. By expanding beyond Phuket to destinations like Sichon and Khao Yai in the serene hills north of Bangkok, these brands provide assurance and confidence to buyers.

With the branded residences market in Phuket reaching an unprecedented supply value of THB 80 billion, according to industry analysts at C9 Hotelworks, the potential for emerging destinations like Sichon is substantial.

Future Outlook

“The strength of the branded residence sector is an evolution of Thailand’s tourism industry,” added Stuart Reading. “As global connectivity improves and barriers to living, working, and traveling diminish, more guests are opting to start a new life in Thailand. With its blend of natural beauty, authenticity, connectivity, value-for-money, and Banyan Group’s five-star hospitality, Sichon is poised to grow in the coming years.”

Author: Patrick Lusted

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