Ruth Bloomfield explores the rapid growth of luxury property markets across Southeast Asia.
Superyacht season is well established — the Mediterranean in summer, Florida and the Caribbean in winter — but going off the beaten path can pay dividends. Intrepid sailors are changing the game by including South and Southeast Asia on their itineraries, attracted by new marinas and the chance to enjoy pristine coastlines, explore jungles, climb mountains and immerse themselves in new cultures. And the region’s explosion in luxury tourism and real estate means there’s no need to forgo the latest amenities when taking the road less traveled.
Thailand’s largest island is already home to nearly 80 five-star hotels and counting, as well as numerous spas, fine dining restaurants, and four marinas capable of accommodating superyachts.
And a report from property analysts Colliers said the island has seen a “significant surge” in construction, with around 9,000 new homes coming on the market last year alone, and a further 4,500 apartments due to come on the market in 2024.
The most popular locations for buyers are on the west coast, especially near Bang Tao Beach, and nearby resort areas such as Laguna Phuket and Layan Beach, which allow owners to avoid the tourist throngs. These locations are also close to international airports and international schools.
Pramapong Nyimpini, senior sales manager at Knight Frank, said property prices on the island had risen by 30-40 per cent since the pandemic, driven by international demand.
Many of the buyers are from Europe, Australia and Russia, with the average price being 150,000-170,000 baht (£3,220-3,650) per square metre.
Sri Lanka is expected to welcome approximately 1.5 million tourists in 2023, up more than 100 percent from the previous year.
Credit: Knight Frank
Phuket is highly developed, with plenty of shops, beach clubs, bars and restaurants, but the island also boasts untouched inland scenery, including forests and waterfalls. Nimpini believes prices will continue to rise next year, but worries that supply will begin to overwhelm demand if construction continues too quickly. “Only the really good projects will survive and thrive, which is why it’s so important to be selective,” she says.
Another popular choice is the idyllic Indonesian island of Bali, with buyers tending to head to the south coast resort village of Canggu or nearby Sanur, says Rodri Ellis Owen, director at Polarius Real Estate.
“It’s valued for its excellent infrastructure, abundance of cafes, shops and restaurants, and its proximity to the airport,” adds Ellis-Owen, “and is popular with expats, digital nomads and investors who can expect double-digit returns on their investment.”
This infrastructure includes several marinas: Bali Marina, the oldest on the island, can accommodate boats up to 45 metres, and the newest, Benoa Marina, Indonesia’s first international standard marina, which opened in 2020.
Property on the island is becoming increasingly luxurious, with large four-bedroom villas in these locations costing between $1 million and $5 million (£790,000 and £3.9 million), says Ellis Owen. “One thing to note here is that some of the properties here are sold on a leasehold basis, with lease terms of around 25 to 50 years,” he adds. “Some are freehold, but you’ll need to check.”
Traditionally, his overseas buyers have been mostly from Australia, but in recent times, North Americans have overtaken them: “There seems to be a resurgence in awareness of Bali, and American buyers are looking at longer-haul destinations.”
Bali stands out not only for its beautiful coastline but also for the opportunities to visit ancient temples, trek through the jungle and see a wide range of wildlife, from macaques to sea turtles and manta rays. “In Bali you can experience a totally different culture,” says Ellis Owen.
Adventurous buyers might want to home hunt in Sri Lanka, which is less developed than Phuket or Bali but still beautiful.
“The luxury property market is emerging here,” says Max Dadi, founder of real estate agency The New Sri Lankan House, “for a more adventurous type of investor than those buying in the south of France or the Caribbean. The infrastructure is less developed, but the value for money is much better and Sri Lanka is unpredictable, colorful and rich with a great expat community.”
Credit: News Sri Lanka House
Most of the beachfront villas are concentrated on the “Golden Mile” between Talpe and Habaraduwa, which is blessed with wide sandy beaches and is just a two-hour drive from Colombo’s international airport along the new highway.
Colombo is home to the Port City Colombo Marina, part of a $15 billion reclaimed land redevelopment project, and the Sri Lankan government is keen to build more facilities for superyachts to rival Dubai.
A four-bedroom villa on the front line along the Golden Mile will set you back around $1.2 million, but the most expensive properties sell for much more: Nugadra Walauwa Estate, once owned by actor Gillian Anderson, went on the market for €5.8 million in 2020. And when you’re not relaxing on clean beaches or sailing, there are plenty of opportunities to explore, from elephant safaris where you can see elephants in their natural habitat, to visiting ancient Buddhist temples and former tea plantations, to rock climbing.
“We may not have great restaurants yet, but life in Sri Lanka is never boring,” says Dadi.
What’s on the market:
2 Bedroom Beach Villa on the South Coast of Sri Lanka
A charming two-bedroom Dutch colonial-style beach villa near Galle on Sri Lanka’s south coast. The property is in the quiet beach resort town of Habaraduwa, where you can visit a turtle hatchery and watch stilt fishermen at work. $950,000, thenewsrilankanhouse.com
3 Bedroom Villa in Keramas
Three-bedroom, 700-square-metre freehold villa in Keramas, a village north of Sanur, Bali. Beautiful gardens include a swimming pool, hot tub and terrace. Surf-friendly Keramas Beach is a few minutes’ walk away. $3.8 million, polariusrealestate.com
4 Bedroom House in Phuket
A contemporary four-bedroom home on a high rise in Phuket offers panoramic views of Kamala Beach and the Andaman Sea. The 222-square-metre lot includes a rooftop terrace, infinity pool and lap pool. $19 million knightfrank.com
First published in the September 2024 issue of BOAT International. Get the magazine delivered straight to your door or subscribe to never miss an issue.
