Two luxury residential projects coming to Phuket and Hua Hin

Worth over 8.5 billion baht, the projects promise to elevate the country's luxury residential real estate industry with world-class services, modern vibes and design.

Amar Lalvani, executive chairman of Standard International, said at a press conference in Bangkok on Tuesday that the company would assist Sansiri and CG Capital in developing the project under the brand The Standard Residences.

The Standard Residences, he added, highlight the distinct styles and standards associated with the Standard hotel brand. Complemented by unexpected yet exceptional services, these projects are an extension of the brand’s hotels, designed to meet the desires of guests who want to own a piece of this experience.

The decision to bring the branded residences strategy to Thailand came after the company saw significant growth in the luxury residences market around the world, including the Asia-Pacific region, where the branded residences market grew by approximately 216%.

Lalvani pointed out that the trend of branded residences increased as a result of the Covid-19 pandemic, which changed people's attitudes towards their lifestyle and work. The increased flexibility in their work and personal lives has altered their perception of hotels. Rather than looking for a place to stay, they are looking for a place to own and live in.

"Regional executives, digital nomads, expats, and high-net-worth individuals are currently looking for their ideal second home. Thailand is one of their top choices due to its high-quality lifestyle, infrastructure, weather, and environment. Standard would like to meet that demand," he said.

According to a joint statement, Standard will collaborate with Sansiri to create the Standard Residences, Hua Hin. The project is the ultimate seaside retreat, located on Hua Hin's most desirable beachfront. The estimated project value is 4.5 billion baht for 245 units.

Meanwhile, The Standard Residences in Phuket is a collaboration with CG Capital, a Central Group subsidiary. The project is situated in the heart of Bang Tao, Phuket's lifestyle hub. The ultra-low density 188-unit property, valued at around 4 billion baht, offers an exclusive sanctuary amidst Phuket's hotspots.

Sansiri chief operating officer Uthai Uthaisangsuk said that the pre-sale for The Standard Residences, Hua Hin will begin in March 2024, with move-ins expected in the second quarter of 2026. Prices will range from 88.9 million to over 100 million baht.

He expected that this new luxury residential estate, like the company's previous projects over the last four decades, would receive a warm response from its interested clients, both for residential and investment purposes.

He also admitted that 70% of their targets will be Bangkokians looking for a vacation home, and 30% will be foreigners looking for a second home while underlining Hua Hin's potential as a desirable place to live.

"Future infrastructure improvements, such as roads, highways, railways, and high-speed trains, as well as the expansion of Hua Hin Airport, will increase the town’s appeal. Simultaneously, strategic frameworks have been created to target specific industries such as wellness and medical tourism. Hua Hin also wants to be a Smart City with modern amenities and a strong emphasis on safety", he said.

CG Capital managing partner Phoom Chirathivat pointed out that Phuket's real estate market is appealing for both lifestyle needs and new investments. Over the last five years, condominium growth in Phuket has increased by 113%, and CG Capital has identified an excellent opportunity to invest in the development of a mixed-use project in Bang Tao.

“Voted as one of the top 10 best workcation cities in the world, Phuket has seen an increase in tourists visiting the area and thus the introduction of various residential projects in Phuket has increased exponentially. To bring in a unique distinction and a guarantee of success, we [CG Capital] are launching The Standard Residences, Phuket Bang Tao, with confidence that both Thai and international buyers will respond positively,” he said.

Pre-sales are expected to begin in April 2024, with the development scheduled to be completed and ready for occupancy in the fourth quarter of 2026. Prices start at 11.9 million baht.

The announcement of this prominent co-development project came as several property experts predicted that the Thai real estate market, particularly in prime locations such as Bangkok, Phuket and Hua Hin, would experience significant growth in both demand and price.

Meanwhile, the tourist real estate market is projected to rebound due to returning international tourists, particularly Russians purchasing properties in Phuket. Other beachfront locations in Thailand would also be in demand.

According to Mordor Intelligence, Thailand Real Estate Market size is estimated at US$54.01 billion in 2024, and is expected to reach $68.95 billion by 2029, growing at a compound annual growth rate of 5% during next five years.

Mordor Intelligence also reported that Thailand is rapidly gaining international recognition due to its numerous business and real estate investment opportunities. As one would expect, properties in central Bangkok and other desirable areas will be more expensive.

In cities like Bangkok, rental homes are becoming increasingly popular among both tourists and long-term residents. The same higher rental rates apply to islands such as Koh Samui, Hua Hin and Phuket, where real estate is in high demand among locals, foreign visitors, Thais, and expats seeking a luxurious escape from the mainland or city.

Citing its two previous successful projects in Miami and Lisbon, Standard International executive chairman Lalvani predicted that Standard's first two branded residences in Asia would be quickly sold out at higher rates than those in the same market.

According to the company, The Standard Residences, Lisbon, which is set to open in the third quarter of this year, is over 91% sold out, while The Standard Residences, Midtown Miami is over 85% sold and scheduled to open in the third quarter of 2025. Both projects have a 20% higher selling price than others in their respective markets.