PHUKET April 2006

1
CONDOMINIUM FOCUS
PHUKET April 2006
2
PART I Market Research
Update of Phuket Condominium Market

• Top 10 Nationalities in 2005
• (No of Hotel Guests)
• Thais 824,330 (-14)
• Australian 127,815 (-33)
• Korean 102,964 (-14)
• U.K 98,713 (-60)
• German 77,052 (-63)
• Swedish 68,844 (-66)
• USA 51,113 (-51)
• Chinese 51,078 (-57)
• Japan 44,662 (-78)
• Middle East 32,643 (-58)

3
PART I Market Research
Update of Phuket Condominium Market
List of Projects under RAIMON Coverage
4
PART I Market Research
Update of Phuket Condominium Market
Sales Volume and Price Transactions

• There were 377 condominium units sold in 2005. At
  an average price of Baht 64,480/ m². An
  improvement since 2004, when 276 units were sold
  at the average of Baht 52,780/ m²
• In Quarter 1 of 2006, there were 76 units sold
  with the average price at Baht 72,646/ m². After
  a drop in Q1/05-Tsunami (-42), sales in Q1/06
  were even higher than Q1/04 (9.2).
• Latest lands suitable for sea view developments
  are running out in the West Coast, pushing up the
  price of sea view properties.

5
PART I Market Research
Update of Phuket Condominium Market
Breakdown of Phuket Condominium Market
6
Raimon Land Phuket Sales office Traffic
Statistics
High Season
Tsunami
Low Season
7
Raimon Land Phuket Customer Profiles
8
PART I- Market Research
Update of Phuket Condominium Market
Outlook

• We expect to see strong growth in demand for
  properties in Phuket supported by new financing
  options given to foreign buyers, improving
  facilities and infrastructure (direct flights,
  marinas, shopping centers etc..)
• Based on current construction progress, 1/3 of
  units under development will be completed in 2006
  (approx. 400 units), with the remainder not
  before 2007. As a result, we believe that the
  unsold stock will be cleared upon completion of
  the developments.
• The influence of world-class architects,
  designers, contractors and professional service
  companies are ensuring smoother transactions and
  have boosted the Phuket real estate market to
  international levels, leaving Bali as the only
  resort rival in the region.
• The West Coast of the island is now seeing a
  shortage of land suitable for developments with
  sea views, leading to upward pressure on the
  price of units in existing and future projects in
  these areas. Following recent price trends
  observed on the island, we believe that the
  prices of quality condominiums could increase
  into the range of Baht 80,000 120,000/ m² over
  the next two years.

9
PART II- Phuket International Marketing
A Proactive and Co-operative Opportunity

• Objectives
• Evaluate the perceived value(s) of Phuket - Look
  in from the outside
• Identify the USPs that both define and
  differentiate Phuket and attach them to the
  current demand
• Comprehensive competitor analysis who and what
  are we up against and why ?
• Leading to
• Positioning Phuket as a prominent option for
  property investment across a variety of markets.

10
PART II- Phuket International Marketing

• Current Marketing Dilemmas
• Cost and value for money / Gauging the
  effectiveness of various mediums / Too many
  options with unknown or exaggerated benifits
• Aggressive competitive nature agents,
  location, product and developers
• Zoning a level playing field . Encourage
  sensible and positive regulation
• Ownership structures identify the pros and
  cons of each and subsequent tax implications
• Traffic, intra-island transport, marine industry
  constraints solve them sooner than later

11
PART II- Phuket International Marketing

• Solutions
• Determine the most productive target markets
  based on research and potential
• Find or develop a universal vehicle for
  promoting the Phuket property market
• A collective drive to emphasize the diversity in
  product and price
• Constructive engagement with Thai organizations
  that can foster property aligned tourism and
  investment
• Focus on cost effective marketing activities and
  media PR, DM and Online driven
• Coordinated Events Program that responds to both
  tourists and residents interests over all seasons

12
(No Transcript)