Phuket's real-estate market is poised for another upturn, says Michael Ayling, managing director of Laguna Resorts and Hotel, Phuket's five-star 1,000-rai resort and residential developer.

Ayling says with return direct flights from Hong Kong's Dragonair and Australia's Jetstar, Phuket's property market stands to regain much of its attraction to global investors in the coming months. Direct flights were suspended following the tsunami on December 26 2004.

Until recently, Singapore's Tiger Airways was the only direct link internationally to the island, he says. The 40-year old executive who heads both the resort and real-estate arm Laguna Property said already the volume of transaction this year has been rather healthy.

Ayling says business is picking up so fast these days that "it is hard to deliver the homes on time".

"Our biggest challenge today is to finish homes in time for visitors to sample. Every time we complete one unit, it is quickly reserved," he says.

Ayling expects prices of Laguna's homes to surge, because a new wave of buyers from Europe is emerging. From his promotional trips to European cities, the response has been encouraging.

"Our traditional markets were Hong Kong and Singapore. In recent months, however, more buyers from Britain and other European countries have been buying in Phuket.

Ayling, who assumed the top post shortly after his predecessor, James Batt, departed to helm a hotel chain in the United States, says his posting in Phuket these past six years as chief financial officer has helped him understand the dynamics of what drives people to invest in properties here.

Originally from Kent, England, Ayling migrated to Australia a few years ago and worked in Papua New Guinea and Sydney before settling down in Phuket.

He believers in Laguna's homes so much that he bought one town home some years ago for about Bt12 million. It has proven to be a windfall.

"These units on resale are going for Bt22 million," he says.

Also, Ayling has benefited from the stronger baht, because its exchange rate against the dollar has added an extra gain of 20 per cent to his punt.

Laguna has four building sites. Its Banyan Tree pool villas are leasehold products that come with a rental guarantee of 6 per cent annually.

"The largest Banyan 'double-pool' villas, covering 450 square metres of built-up space, sell for US$2 million (Bt73.23 million) each", he says.

Another site is the Dusit Villas project, which sells units for Bt32 million to Bt54 million.

The leased villas come fully furnished, including with furniture, kitchens and appliances.

For freehold properties, Laguna offers detached residences for Bt25 million to Bt28 million and semi-detached town homes for Bt18 million near its 18-hole golf course.

The company recently acquired 1,000-rai adjoining plot for a massive housing development called Laguna Village.

Its first phase, covering about a fifth of the new estate, has detached and semi-detached units that are already selling strongly, being priced a bit lower. "Town homes at the new location will start from about Bt11.5 million.

While Thai buyers can obtain freehold titles to the property, foreigners will need to purchase a leasehold agreement carrying a maximum 30-year term plus provisions for two additional renewable 30-year terms, or a total 90-year agreement.

Investors who want to buy the units can enter Laguna's rental pool but will not be guaranteed a fixed rate of return.

Ayling says property sales account for roughly 40 per cent of Laguna's revenues.

 Itthi C Tan

 The Nation

Bang Tao, Phuket