Is buying a property in Bang Tao a good investment?

Last updated on December 20, 2023

Yes, the analysis of Phuket's property market is included in our pack

If you've admired the upscale resorts and seaside allure of Bang Tao, you might have contemplated calling this scenic Phuket district your elegant and tranquil coastal sanctuary.

Is it a good idea though? What's the current state of the real estate market in that area? Are property values appreciating or depreciating? Are investors seeing returns on their real estate investments? How's the demand for rentals?

We'll answer all these questions for you! When building and updating our property pack for Thailand, our team has been researching and surveying this area. In fact, there is significant customer interest in investing there. Therefore, we believe it would be beneficial to include some information about it in our property pack.

Why do property buyers like investing in Bang Tao?

Bang Tao in Phuket has emerged as a highly sought-after location for property buyers, distinguished by its unique blend of attributes that set it apart from other real estate markets.

Its allure is rooted in several factors, including its stunning natural beauty, upscale amenities, and the blend of tranquility and accessibility it offers.

One of the key aspects that make Bang Tao stand out is its exquisite beach. Stretching over six kilometers, Bang Tao Beach is one of Phuket's longest and offers a serene, less crowded experience compared to the bustling Patong or Kata beaches.

This tranquility, combined with the clear waters and white sandy beach, creates an idyllic setting that's hard to find elsewhere on the island.

Moreover, Bang Tao has developed a reputation for luxury. The area is home to some of the most upscale resorts, villas, and high-end developments in Phuket. The Laguna Phuket, a prominent resort complex, is a prime example, featuring world-class facilities and a golf course.

This concentration of luxury properties has attracted a discerning clientele looking for premium living experiences, which further adds to the area's exclusivity.

The rise in popularity of Bang Tao can be traced back to the early 2000s. This growth was fueled by the development of the Laguna complex and the subsequent influx of high-end restaurants, boutiques, and entertainment options.

Unlike some hyped-up destinations that tend to fade, Bang Tao has managed to maintain its appeal. This sustainability is largely due to the careful balance between development and preserving the natural beauty of the area.

In terms of the demographic it attracts, Bang Tao is particularly appealing to affluent buyers and expatriates seeking a luxurious lifestyle, privacy, and a high standard of living.

It's also favored by retirees and families who appreciate the peaceful environment and the high-quality international schools in the vicinity.

However, every location has its drawbacks, and Bang Tao is no exception. One of the potential weaknesses of the area is its relatively high cost of living and property prices, which can be prohibitive for some buyers.

Additionally, during the peak tourist season, certain parts of Bang Tao can get quite busy, which might detract from its usually tranquil atmosphere.

Furthermore, while it offers seclusion and peace, this can also mean that it's less connected to the vibrant local culture and nightlife found in other parts of Phuket, which might be a downside for those seeking a more immersive Thai experience.

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Why is Bang Tao a nice place to live?

Bang Tao stands out as a desirable place to live, offering a unique blend of lifestyle, culture, and amenities that cater to a diverse range of needs and preferences.

The lifestyle in Bang Tao is often characterized by its laid-back and luxurious atmosphere. The area is known for its beautiful, long beach which provides a serene backdrop for residents.

This tranquility, combined with the high-end resorts and villas in the area, contributes to a lifestyle that is both relaxed and upscale. The local culture is a harmonious blend of traditional Thai elements and international influences, thanks to the diverse community living there.

Speaking of the community, Bang Tao has a significant expatriate population. This expat community is quite vibrant and diverse, comprising individuals and families from around the world.

This multicultural aspect has led to a variety of international restaurants, clubs, and community groups, making it easier for newcomers to feel at home and build social networks.

Regarding the cost of living, it's important to note that Bang Tao is one of the more upscale areas in Phuket. The cost of living here can be higher compared to other parts of Thailand, especially in terms of housing, dining, and entertainment. For many, the high quality of life and amenities justify the expense.

Safety is a crucial factor for any residential area, and Bang Tao is generally considered safe. The region benefits from a steady presence of security, often provided by the resorts and private communities, and the local authorities are quite proactive in maintaining a secure environment.

Amenities and facilities in Bang Tao are comprehensive. For educational needs, there are several international schools like the British International School, Phuket.

Healthcare is well catered for with facilities such as the Thalang Hospital and several international clinics offering high-quality medical services.

For shopping and leisure, the Boat Avenue and Porto de Phuket are popular spots with a range of shops, supermarkets, and restaurants.

The infrastructure in Bang Tao is well-developed. Roads are generally in good condition, making driving around the area comfortable. Utilities like electricity and water supply are reliable, and internet connectivity is excellent, which is a significant plus for expats and remote workers.

Accessibility is another strong point for Bang Tao. It's relatively easy to travel to other parts of Phuket, with major roads connecting it to the rest of the island. The Phuket International Airport is just about a 20-minute drive away, making travel in and out of Phuket convenient for residents.

Public transportation options, however, are somewhat limited, which is a common issue in many parts of Phuket. While there are some bus services and taxis available, many residents prefer to have their own vehicle for convenience.

How much does it cost to buy real estate in Bang Tao?

If you need a detailed and updated analysis of the prices, rents and yields, you can get our full guide about real estate investment in Thailand.

When considering buying property in Bang Tao, it's essential to understand the variety of options available and the dynamics that influence the local real estate market.

In Bang Tao, you'll find a diverse range of residential properties, including apartments, houses, and luxury villas. Each of these caters to different preferences and budgets. The high-end luxury villas, often located close to the beach or within exclusive communities, are particularly in demand.

Their popularity is driven by their spacious layouts, private settings, and often, exclusive amenities like private pools and lush gardens.

Apartments, including condominiums, also have a significant market presence, appealing to those looking for more compact, easy-to-maintain living spaces.

The property market in Bang Tao is a mix of new developments and resale properties. In recent years, there has been a surge in new developments, particularly luxury villas and condominiums, catering to the growing demand for upscale residential options. These new developments often come with modern amenities, adding to their appeal.

The price range for properties in Bang Tao varies widely, depending on the type, location, and amenities. For instance, luxury villas can command prices significantly higher than more modest houses or apartments.

To give you a general idea, prices per square meter can range from around THB 60,000 to over THB 150,000. It's important to note that these figures can fluctuate based on market conditions and specific property features.

Over the recent years, property values in Bang Tao have seen a steady increase. This trend is attributable to the area's growing popularity, ongoing development, and the overall allure of Phuket as a prime destination for both investment and lifestyle purposes.

Looking ahead, there are indications of potential new developments and city planning changes in and around Bang Tao that could impact property values.

For example, the expansion of infrastructure or introduction of new amenities and attractions in the area can make properties more desirable, potentially driving up prices.

Predicting the real estate market's future in Bang Tao involves considering various factors. The area's ongoing popularity, the steady influx of expatriates, and the continuous development of high-end properties suggest a potential for continued growth in property values.

Additionally, as Phuket continues to evolve as a premier tourist and expat destination, areas like Bang Tao stand to benefit.

Specific factors that indicate a potential increase in property values include the ongoing demand for luxury properties, the strategic location of Bang Tao with its beachfront allure, and the area's reputation as a tranquil yet upscale living environment.

Moreover, as infrastructure improves and new developments continue to emerge, these factors collectively create an environment conducive to real estate growth.

Where is the best area to buy a property in Bang Tao?

When you're considering buying property in Bang Tao, it's important to recognize that different parts of this area offer varied atmospheres, types of properties, and price points.

Your choice of the best area depends on what you value most – be it tranquility, proximity to the beach, or access to amenities.

One of the most coveted parts of Bang Tao is near the beachfront. This area is renowned for its serene atmosphere and stunning natural beauty.

Properties here are typically high-end, with luxury villas and upscale condominiums being the most common. The proximity to Bang Tao Beach, one of Phuket's longest and most beautiful beaches, adds a premium to these properties.

As a result, prices in this beachfront area are among the highest in Bang Tao, reflecting the luxury and exclusivity of the properties.

Moving inland, you'll find a different scene. The properties here tend to be more diverse, ranging from modest houses to mid-range villas and condos. This area offers a more laid-back, local atmosphere, with easier access to everyday amenities like local markets and schools

Prices here are generally more affordable compared to the beachfront area, making it a good option for those who prioritize value over beach proximity.

Recently, some up-and-coming areas within Bang Tao have started gaining attention. For example, the areas surrounding the Laguna Phuket, a large resort complex, are becoming increasingly popular.

These areas are known for their well-developed infrastructure, community feel, and a mix of residential options, from apartments to luxury villas. The development of these areas is ongoing, suggesting potential for future appreciation in property values.

For those looking to buy property, areas near Laguna Phuket and the beachfront are highly recommended. These areas offer a blend of luxury, convenience, and natural beauty, making them highly desirable.

The properties here are more likely to retain their value and even appreciate over time, thanks to the continuous development and enduring popularity of Bang Tao.

On the other hand, areas that are further away from the beach and main amenities might not be as advisable for those seeking a typical Phuket lifestyle or investment appreciation.

These areas might lack the charm and convenience of the more central parts of Bang Tao and might not offer the same potential for rental income or property value appreciation.

Here is a summary table to help you visualize better. If you need more detailed data and information, please check our property pack for Thailand.

Area	Atmosphere	Property Types	Price Range
Beachfront	Serene, Natural Beauty	Luxury Villas, Upscale Condominiums	Highest in Bang Tao
Inland	Laid-back, Local	Diverse Range, from Houses to Mid-range Villas and Condos	More Affordable
Near Laguna Phuket	Developing, Community Feel	Mix of Residential Options	Mid to High Range

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Is there a strong rental demand in Bang Tao?

Bang Tao indeed experiences a strong rental demand, attributed to its appealing blend of tranquility, natural beauty, and upscale amenities.

The rental market here caters to both short-term and long-term tenants, each with distinct preferences and requirements.

In terms of short-term rentals, the target demographic primarily includes tourists and holidaymakers. These renters are often attracted to Bang Tao for its picturesque beaches and luxury resorts.

The profile of these short-term tenants usually comprises international travelers, families on vacation, and couples looking for a serene getaway. For them, the preferred type of properties are furnished apartments, beachfront villas, or condos that offer a blend of comfort and luxury.

Short-term renters typically look for properties close to the beach, such as those in the beachfront area of Bang Tao or near upscale complexes like Laguna Phuket, where they can enjoy easy access to the beach, restaurants, and leisure activities.

Long-term rentals, on the other hand, attract a different set of tenants. These are often expatriates, digital nomads, or retirees who choose to spend extended periods in Phuket.

Their focus is more on the quality of life and convenience. They tend to look for well-furnished apartments, townhouses, or villas that offer comfort for longer stays.

Preferred areas for long-term rentals include both beachfront properties and those slightly inland, where tenants can enjoy a more immersive local experience while still having access to necessary amenities.

Certain amenities can significantly reduce vacancy rates in rental properties. Features such as swimming pools, fitness centers, high-speed internet, and proximity to international schools, shopping centers, and healthcare facilities are highly valued.

These amenities cater to the lifestyle expectations of the target renters, making the properties more attractive and reducing the likelihood of long vacancy periods.

When it comes to potential returns on investment, properties in Bang Tao can offer attractive yields, especially given the strong demand. While exact figures vary, rental yields in desirable areas of Bang Tao can be quite competitive.

Properties near the beach or in developed complexes like Laguna Phuket tend to fetch higher rental prices due to their location and the amenities they offer.

Currently, there's an increasing demand for properties that offer a blend of luxury and practicality. High-end apartments and villas with modern amenities, good security, and convenient access to the beach and other attractions are becoming more popular.

These properties not only appeal to short-term holiday renters but are also attractive for long-term tenants seeking a comfortable lifestyle in Phuket. As such, investing in these types of properties could potentially yield better returns in the current market.

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Is it easy to buy a property as foreigner in Bang Tao?

Before we answer the question, please know that we have an article dedicated to the experience of buying real estate as a foreigner in Thailand.

Buying property as a foreigner in Bang Tao, Phuket, involves navigating certain regulations and understanding the local real estate market, which can be challenging but is feasible with the right knowledge and assistance.

Firstly, it's crucial to understand that Thai property law has specific regulations for foreign buyers. Foreigners are generally not allowed to own land outright in Thailand. However, they can own condominium units, as long as at least 51% of the building is owned by Thai nationals.

Another common method for foreigners to invest in property is through a long-term leasehold, typically for 30 years with the option to renew. Leaseholds can apply to both land and houses.

Alternatively, some foreigners opt to set up a Thai Limited Company to purchase land, but this route is complex and requires adherence to specific legal requirements.

The purchasing process in Bang Tao involves several steps. It usually starts with choosing a property, negotiating the price, and then conducting due diligence to ensure the property has a clean title and there are no legal encumbrances.

The next steps typically include signing a sales agreement, paying a deposit, and finally, completing the transaction at the Land Department, where the property is officially transferred.

There are primary risks associated with property investment in Bang Tao, as with any real estate market. These include market volatility, changes in property laws, and potential issues with property titles. It's also not uncommon for foreign buyers to encounter challenges due to language barriers and differences in legal processes.

Common pitfalls or mistakes when buying property in Thailand include not conducting thorough due diligence, misunderstanding the legal restrictions on foreign ownership, and underestimating additional costs like taxes, fees, and maintenance expenses.

One unique aspect in Thailand is the complexity of land title systems, with some land having unclear ownership or usage rights, which can lead to legal complications.

Working with a local real estate agent or lawyer is highly important. They can provide valuable insights into the local market, help navigate the legal complexities, and ensure that all procedures are correctly followed.

A reputable local expert can also assist in overcoming language barriers and understanding cultural nuances in business transactions.

For exit strategies, property investors in Bang Tao generally have a few options. These include selling the property outright, which can be more challenging for leasehold properties, or transferring the lease to a new buyer.

Another strategy is to hold the property and generate rental income, which can be a viable long-term investment given the area's popularity as a tourist destination.