While investment pours into Phuket, developers are seeking “first mover” advantage in emerging locations as Thailand’s reputation as one of the world’s most liveable destinations continues to soar

Thailand’s skyrocketing branded residences sector is now spreading across the country, creating exciting new opportunities for investment in alternative destinations which showcase the kingdom’s iconic natural scenery but where land prices are only a fraction of legacy destinations, such as Phuket.

The enduring success of Thailand’s tourism industry – which topped 40 million international visitors in 2019 and could reach 80 million by 2028 – is the major driving force for the branded residences sector, as affluent travellers pivot from visiting a dream destination to living in Thailand long-term. This popularity has led to a real estate boom in places like Phuket, which is now the fourth biggest market in the world for branded residences, behind only Dubai, New York City and Miami.

With land prices in Thailand’s tourism hotspots soaring, savvy developers and investors are increasingly turning their attention to “hidden gems,” especially in idyllic coastal areas. Banyan Group, ranked as the world’s fifth-largest branded residences operator by Savills Research, recently signed a collaboration on a new project in Sichon, a beachfront enclave in Nakhon Si Thammarat province. Banyan Tree Residences Sichon is set to launch in June 2024 and is expected to attract entrepreneurial buyers with its natural beauty, high build quality, brand assurance, and a greater “bang for their buck”.

The allure of investing in new destinations like Sichon becomes evident when compared to the soaring land prices in established areas. For example, beachfront land in Bang Tao, Phuket, has reached over THB 100 million per rai according to Colliers International Thailand. This represents a nearly 14-fold increase from THB 7.5 million in 2004, as reported by Thailand’s Agency for Real Estate Affairs. This stark contrast underscores the significant upside potential for early movers in emerging locations, where entry costs are much more attainable, offering a promising reward for forward-thinking investors like Urasaya Property, the award-winning developer of Banyan Tree Residences Sichon and the pioneering real estate developer, that is ready and excited to showcase the hidden gems of Sichon.

“The notable rise in land values in established markets has been remarkable, yet the window of opportunity in these new settings presents potential for significant growth,” remarked Ravi Chandran, a 25-year resident of Phuket and Executive Director of Urasaya Property. “The first-mover advantage in areas like Sichon could herald long-term benefits for early stakeholders.”

The recent opening of a new international terminal at Nakhon Si Thammarat Airport, along with other factors such as the “work from anywhere” movement and capital flight pressures are further demand drivers for Sichon. The destination also has access to international education, medical services and retail outlets within a 30-40 minute radius, while retaining the natural beauty and cultural authenticity which first drew the world’s travellers to Thailand 30 years ago.

“Nakhon Si Thammarat is just a stone’s throw away from Phuket and Samui. You can drive from Phuket to Krabi, and on to Nakhon Si Thammarat, then take a ferry to Samui. That whole part of southern Thailand has huge potential, and we would like to contribute to developing that,” Stuart Reading, Managing Director of Banyan Group Property Development.

International hospitality brands such as Banyan Tree have been instrumental in Thailand’s branded residences success story, expanding outside of Phuket to destinations such as Sichon and Khao Yai in the tranquil hills three hours north of Bangkok, where their brand creates assurance among buyers.

With the branded residences sector in Phuket having reached an unprecedented supply value of THB 80 billion, a new historical high according to the expert industry analysts at C9 Hotelworks, the potential for Sichon and other emerging destinations is strong.

“The strength of the branded residence sector is a further evolution of the Thailand’s tourism industry,” said Stuart Reading. “As global connectivity increases and the barriers to life, work and travel are removed, an increasing number of guests are no longer content with visiting Thailand for a few weeks – they want to start a new life here. With its combination of natural beauty, authenticity, connectivity, value-for-money, and Banyan Group’s five-star hospitality, Sichon is an exciting destination we expect to grow in the coming years”.

To learn more about Banyan Tree Residences Sichon, please visit sichon.banyantreeresidences.com and watch here.