The emerging luxury property markets in Thailand, Bali and Sri Lanka

Ruth Bloomfield explores the surge of luxury property markets across South East Asia. 

Superyacht seasons are well established: summers in the Med and wintering in Florida or the Caribbean. But going off the beaten track can pay dividends. Intrepid sailors are shaking things up by including South and South East Asia on their itineraries, enticed by new marinas and the chance to enjoy unspoiled coastlines, explore jungles, climb mountains and immerse themselves in new cultures. And an explosion in luxury tourism and property in the region means that there is no need to forsake mod cons when taking this road less travelled.

There are already almost 80 five-star hotels – and counting – on Thailand’s largest island, Phuket, numerous spas and high-end restaurants, and four marinas catering for superyachts.

And according to a report by property analyst Colliers there has also been a “remarkable surge” in building on the island, with almost 9,000 new homes going on sale last year alone. Another 4,500 apartments are due to go on sale during 2024.

The most popular location for buyers is the west coast, particularly close to Bang Tao Beach, and at nearby resorts like Laguna Phuket and Layan Beach, where owners can avoid the tourist hordes. These locations are also close to the international airport and international schools.

Prices on the island have increased by an estimated 30 to 40 per cent since the pandemic, says Pramaporn Nimpinij, senior sales manager at Knight Frank, driven by international demand.

Many buyers come from Europe, Australia and Russia. Average prices stand at 150,000 to 170,000 Thai baht (£3,220 to £3,650) per square metre.

Phuket is highly developed, with plenty of shops, beach clubs, bars and restaurants, but the island also has an interior landscape of unspoiled forests and waterfalls. Nimpinij believes prices will continue to rise next year although she is concerned that if building continues apace supply could start to overwhelm demand. “Only the really good projects will survive and thrive, which is why it is so important to choose carefully,” she says.

Another popular choice is the idyllic Indonesian island of Bali, where buyers tend to head to either the south coast resort village of Canggu or to nearby Sanur, says Rhodri Ellis Owen, director of Polarius Real Estate.

“They have a very developed infrastructure, and people appreciate that they have got a lot of cafés, shops and restaurants, and are also close to the airport,” adds Ellis Owen. “They are popular with expats and digital nomads as well as investors who can see double-digit returns on investment.”

This infrastructure includes several marinas – Bali Marina, the oldest on the island, can accommodate boats up to 45 metres. The newest, Benoa Marina, Indonesia’s first international-standard marina, opened in 2020.

Property on the island is becoming increasingly luxurious, and a substantial four-bedroom villa in these locations costs anywhere from $1 million to $5 million (£790,000 to £3.9m), Ellis Owen says. “One thing you have to look at is that some of the properties here are sold on a leasehold basis, with a lease of between around 25 and 50 years,” he adds. “There are some which are freehold, but you do need to check.”

Traditionally his international buyers hailed from Australia, but more recently they have been overtaken by North Americans. “There seems to have been a resurgence in terms of awareness of Bali, and American buyers seem to be looking more at longer-haul destinations.”

Bali stands out not only for its stunning coastline, but also because it offers the opportunity to visit ancient temples, trek through jungle and admire an wide variety of wildlife, from macaques to sea turtles and manta rays. “In Bali you can experience a completely different culture,” says Ellis Owen.

Buyers with a taste for adventure might want to house-hunt in Sri Lanka, which is less developed than Phuket or Bali, but still beautiful.

“The luxury property market is emerging here,” says Max Duddy, founder of The New Sri Lankan House estate agents. “It caters to a more adventurous type of investor than those who buy in the South of France or the Caribbean. The infrastructure is less smooth, but you get much more for  your money, and Sri Lanka is an unpredictable, colourful and rich place to be, with a nice expat community.”

Most seafront villas are clustered in “the Golden Mile” between Talpe and Habaraduwa, which is blessed with wide sandy beaches and is just a two-hour drive along a new highway to the international airport in Colombo.

Colombo has the Port City Colombo Marina, part of a $15 billion regeneration of reclaimed land, and the Sri Lankan government is keen to build more facilities for superyachts in an attempt to compete with Dubai.

A front-line four-bedroom villa along the Golden Mile costs around $1.2 million, although the most expensive properties sell for much more. The Nugadola Wallauwa estate, formerly owned by actor Gillian Anderson, was listed in 2020 for €5.8 million. And when you’re not relaxing on the immaculate beaches or sailing, opportunities abound for exploring, from elephant safaris, where you can view them in their natural habitat, to visiting ancient Buddhist temples and former tea plantations, or going rock climbing.

“It may not have wonderful restaurants yet,” says Duddy, “but life in Sri Lanka is never dull.”

First published in the September 2024 issue of BOAT International. Get this magazine sent straight to your door, or subscribe and never miss an issue.