In the 80s, some of our parents made their first million baht. What did they do to splurge? They purchased property.
But why do valuations of these desirable homes remain relatively low?
Between 1990 and 2000, many Indian families purchased a holiday home in the above projects at between THB 19,000/sqm and THB 29,000/sqm.
By 2010, it was valued at THB 30,000 to THB 35,000/sqm. By 2020, valued at THB 35,000 to THB 42,000/sqm.
Today, they are valued at THB 41,000 to THB 48,000/sqm.
Valuations for beachfront and resort cities like Chiang Mai have not multiplied by four or six in a 20 to 30-year cycle.
Taking a median, you will find that valuations for apartments and villas for holiday homes are generally up 2 percent to 3.4 percent per year. If you are lucky enough, you exit about 15 percent to 20 percent after 10 years.
That’s not bad, but it’s not good enough either.
Where are the opportunities, you may ask? I think you need to follow your passions.
First, I see value in branded residences. Brands like InterContinental homes in Hua Hin are limited edition. Limited supply, beachfront with full access and full options of services, will see good value moving forward.
Second, I believe that Sansiri PCL, CG Capital, and Assetwise are making excellent homes in the resort cities. Their products will command a premium, and their valuations will be up 3 percent to 3.5 percent per year, year-on-year, for the first 10 years.
Locations where I see value are beachfront Phuket, namely Bangtao, Patong, Surin, Kata, and Karon. They will see valuations rise at twice the speed of Bangkok between 2026 and 2029.
Bangkok has reached a saturation point, and there are very few families actually moving into this city in 2026. In contrast, developers like Anchan Villas, Botanica, MONO, Banyan Group, and many more like CH Capital have put a huge bet on Phuket.
The pace of growth at locations like Pru Jampa and Layan offers excellent opportunities to small developers to enter the market with a USD 1 million budget to build three or four villas.
I would suggest passion. Without passion, buying a holiday home is akin to buying a yacht. Easy to take care of on a one-time use basis, but long-term, sometimes a holiday home can be more of a burden than a luxury.
For those of us who love hotel facilities like room service, clean and maintained swimming pools, full-service bed linens, laundry, and late-night meals, think carefully before you invest in a non-serviced apartment-type holiday home.
You may need to have a holiday after visiting your holiday home if you are doing cooking, laundry, cleaning, and general upkeep.
Thailand has plenty of holiday destinations under THB 2,000 per night. You just have to look.
If, on the other hand, you have a budget of THB 75 million, may I suggest the best option in the market currently, the Tierra Cuatro in Pru Jampa, Phuket, over 600 sqm with five bedrooms of built-up space in over 1,200 sqm of land of pure luxury.
The best in luxury in Phuket, I have discovered.
For any type of advisory on holiday homes, let me know your likes, and my team will be happy to help.
Thank you. And Happy Holidays!