phuket shared ownership state of the invasion bill barnett, managing director c9 hotelworks october...
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AOCAP 2009
Phuket Shared Ownership“State of the Invasion”
Bill Barnett, Managing Director C9 Hotelworks
October 12, 2009
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2009 Trends
Sleeping giant with over THB2 billion sales 2008
Total market size of 554 units as of H1 2009
Natural accompaniment to destination’s tourism market
Evolving from timeshare model; more global brands
Notable component of Phuket real estate sector
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Market Watch
Vacation Ownership (VO) core sector Yacht Fractional Ownership (YFO) sales launched 2007 Property Fractional Ownership (PFO) 2009
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Market Watch
PFO marked 13% of sales 2009 VO market share 2009 decreased from 95% to 83%
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Existing Projects
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Project Pipeline
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Vacation OwnershipAt a Glance Critical mass of units (92%) in Bangtao and Mai Khao Week-based members (68%) vs. point-based (32%) Vacation clubs and point memberships popularity increasing 20% Thai members in favor of local club, shorter duration and
lower entry price Innovative features:
Vacation exchange partnership (RCI, II and DAE) Reward program / privilege card Membership repurchase or resale programs
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Pricing Analysis
Point programs attaining higher selling price
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Branding Penetration Effect
International brands 62% price premium;dominating sales volume
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Property Fractional Ownership
PFO in Phuket Context: Sales started late 2008; a few projects in Patong and vicinity Wide range of week ownership, unit size, and price points All foreign buyers; mostly Australian, British, South African
and Malaysian Purchase on leasehold and share basis Innovative features:
Rental pooling Branded hotel management Exchange affiliation (Register Collection)
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Price and Period Relationship
No significant influence of ownership period on price
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Price and Unit Size Relationship
Smaller units higher price per square meter
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Yacht Fractional Ownership
YFO in Phuket context: 10 fractional ownership shares; each with 28 day entitlement
Local entity developers/sellers with related businesses
All foreign buyers; mostly British, French and Scandinavian over half residing in Asia
Private charter rental during non-usage periods
Relevant expenses i.e. maintenance, insurance, food & beverage, and fuel charges
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Pricing Trend
Price growth slowing down as 2009 sales volume dropped
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Forward Outlook
Emphasis on lower entry products, domestic buyers and financing options
More developers attracted to conversions; pipeline increasing
Branded luxury and mixed use projects to offer fractional options
Rising niche fractional products i.e. yachts, private aircraft and luxury automobiles
Resale market to develop, testing appreciation viability
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Today’s Takeaway
Shared Ownership’s Greatest Advantage is -
“Its Ability to Innovate New Products”
You can download the report and this presentation atwww.C9hotelworks.com market research