Phuket, Thailand, October 18, 2009- According to a recent market report released by Bill Barnett, noted industry analyst and Managing Director C9 Hotelworks, shared ownership sales in Phuket represented over THB2 billion for the full year 2008.
Barnett says that with a total customer base of 22,498, the developing industry while still in its early years is the sleeping giant of the islands property industry. Acting as a natural accompaniment to the destination’s tourism market which has moved well toward recovery through the 3rd quarter of 2009; the emergence of fractional ownership of properties and yachts is becoming a notable component of the real estate sector. The company expects the shared ownership to increase market share during the next 12-24 months.
According to the C9 report, the total current market size of shared ownership in Phuket is 554 accommodation units, with vacation ownership holding 87 per cent of the market share in the first half of 2009 and fractional sales accounting for the balance.
Research data also indicates an emerging base of fractionally owned yachts in Phuket, with US$ 2.8 million in sales having been recorded since the launch of this type of ownership scheme only two years ago.
“The 2009 trend marks a continued shift, with 68 per cent of volume from point-based systems versus week-based programs in the core segment. Brand pricing by international affiliates is also on the rise, reaching a 62 per cent premium over ‘non-branded’ product,” Mr Barnett said.
He added that while consumer spending is in retreat and 2009’s revenue will fall short of the previous year, there is a greater emphasis on lower entry points, financing options and an increase in domestic customers. These factors should provide sound performance foundations during difficult times.