Phuket-based Blue Horizon Developments Co remains committed to continuing guaranteed-return condominium development in Phuket to capitalise on the rising trend of investment buyers.
The company plans to launch a new project worth 4.2 billion baht near Kamala Beach in the next three months.
Chief executive Andres Pira said individual investors worldwide have shifted to property investment because stocks are volatile and bank deposit rates are too low.
"Property for an investment with an offer of a guaranteed return has become more and more attractive, particularly residential units in the world's resort destinations like Phuket," he said.
In the fourth quarter, Blue Horizon will launch Heavena Residences by the Sea worth 4.2 billion baht, with 740 condo units sized from 33 square metres and priced from 3.7 million baht a unit with a guaranteed return of 7% a year for five years.
The project will be operated by an international hotel chain, Wyndham Hotels & Resorts, as part of a mixed-use development on a 39-rai site 200 metres from Kamala Beach.
The residences will be the company's fourth project offering a guaranteed return after the developer detected a trend of investment buying in Phuket a few years ago.
"Five years ago, buyers in the Phuket property market were mainly European and Russian," Mr Pira said. "Today they are Chinese. We are not worried about a crackdown [by the Chinese government] on money transfers overseas, as the buyers will find their ways."
Mr Pira, a Swede who settled in Phuket 15 years ago, said the proportion of Chinese buyers in Phuket has grown from 5% in 2014 to 15% in 2015, 25% in 2016 and 60% at the moment.
For an earlier condo-for-investment project, the Ramada Plaza Grand Himalai Oceanfront Residences, half the buyers were Chinese, followed by Russians at 25%. The rest included Thais, South Africans, Europeans and Australians.
Launched in August 2017, this project will occupy a 15.5-rai site in the Kamala Beach area, comprising 426 units priced from 3.9 million baht with a guaranteed return of 7% a year for five years. The project, worth 2.9 billion baht, is 89% sold and will be run by Wyndham for 10 years.
"Beachfront or ocean-view land in Phuket has become very scarce," Mr Pira said. "We will look to Phangnga and Krabi instead."