Minor International unveils latest Phuket branded residence, Kiara Reserve
By Timothy Tay
/ EdgeProp Singapore |
Kiara Reserve comprises 17 villas and 25 condo units. (Pictures: Minor International)
Thailand-based real estate conglomerate Minor International and its Japanese partner Kajima Corporation have unveiled their third branded residence project in Phuket, Thailand. The new branded residence is named Kiara Reserve, their fifth joint development in Layan Bay, Phuket.
So far, They have completed two other branded residence projects — Avadina Hills by Anantara and Layan Residences by Anantara — and supporting F&B and leisure facilities.
Minor International was established in 1978 and started with a single beachfront resort in Pattaya named Royal Garden Resort Pattaya. Today it is known as Avani Pattaya Resort & Spa. Over the past 50 years, the company has grown into an international property development, hospitality, and leisure conglomerate. Its portfolio comprises more than 530 hotels, resorts and serviced suites in 63 countries.
The development and operation of its hotels and resorts fall under its hospitality arm, Minor Hotel Group, which has several hospitality brands such as Anantara Hotels, Resorts & Spas. The Thai conglomerate also has restaurant and F&B businesses managed by its subsidiary, Minor Food Group, and its retail trading business is overseen by Minor Corporation.
An artist impression of a condo unit at Kiara Reserve.
The parent company, Minor International, considers the Southeast Asia region its primary focus, delivering most of its new projects in key holiday destinations, says Micah Tamthai, COO of lifestyle and real estate at Minor International.
The development of Kiara Reserve and other branded residences and facilities in Layan Bay is part of a long-term development project by Minor International and Kajima Corp to turn 40 acres of prime beachfront land into a new holiday destination.
Slated for completion in 2025, Kiara Reserve comprises 17 villas and 25 condominium units with a mix of three- and four-bedroom apartment types. Units range from 2,700 sq ft to 8,920 sq ft.
Avadina Hills by Anantara comprises 14 hillside villas facing the beach, and Layan Residences by Anantara consists of 15 hillside villas with beachfront views. Other supporting facilities have been completed, such as Beach House, an all-day beachfront dining venue, and Layan Active Zone, a family-friendly sports complex.
Kiara Reserve will be serviced by an experienced hospitality team from Anantara Hotels, Resorts & Spas, a hotel brand under Minor International.
According to Tamthai, Minor is pricing units at Kiara Reserve between US$1 million ($1.36 million) and US$3 million — a price range the developer believes most buyers of branded home and holiday homes are willing to fork out over the last three years.
“With apartment sizes of this range, we are opening Layan Bay to a new segment of buyers, and the price range opens up opportunities for more people to buy into our development,” he says.
At Kiara Reserve, about half of the buyers are local Thais, while the rest are expatriates living in Southeast Asia or buyers from Singapore, Indonesia, Malaysia, and European countries. “Generally, the profile of our buyers are business owners looking for a holiday home,” says Tamthai.
Most local Thai buyers have opted into the rental programme Anantara Hotel offers. “When you aren’t staying in your property, you can give it to the hotel to rent out. We don’t insist on blackout dates, nor do we limit the number of usage days by the owner,” says Tamthai, adding that typically, these owners utilise the villas for about six weeks each year.
Under this programme, which has no rental guarantee, owners receive about 60% of the rental proceeds while the hotel keeps the remaining 40%. Usually, the amount the owners make from this rental programme more than covers the regular expenses to maintain the unit, such as utilities and management expenses, he says.
An artist impression of one of the three-bedroom villas at Kiara Reserve.
Tamthai says that while the developer will not share the sales progress of Kiara Reserve, a “substantial’ number of units were sold in private pre-sales earlier this year. He adds that most buyers have already snapped up several condo units compared to villas.
“Most of our residential developments are branded residences supported by our in-house hospitality operations, Minor Hotel Group,” he says. “We were one of the first hospitality and leisure companies in the Asia Pacific region to pioneer branded residences in the early 1990s.”
As branded residences mature in Southeast Asia, Minor has seen growing demand for this type of full-service residential product. These buyers prioritise convenience and good service that hotel operators can provide, says Tamthai.
A growing class of wealthy buyers in Southeast Asia also view these branded residences from an investment perspective. He says that its rental programme has been popular as these owners look for ways to generate rental income from their assets.
He adds that successive rounds of property cooling measures and rising property prices in Singapore have made many locals and expatriates living in the country feel increasingly priced out of the private residential market in the city-state.
This group of buyers has clearly preferred established holiday destinations in the region, such as Phuket in Thailand and Desaru in Malaysia. “Since the end of the pandemic, we have seen a spike in the number of Singapore-based buyers enquiring about our properties in these locations,” says Tamthai.
Priced between US$1 million and US$3 million, it is the sweet spot for most buyers of branded residences or holiday homes, says Tamthai.
The market for branded residences has also evolved in tandem with the spike in post-pandemic demand. Increasingly, he says new branded residences are not paired with an accompanying hotel property, which had been the norm since the concept took root here.
“This shows that consumers understand the standalone appeal of a branded residence, as well as the assets’ ability in driving premium rents and prices in this region,” he says. “For our projects in Thailand and Malaysia, domestic demand has always been strong, contributing up to 80% of the buyers in each project. However, in recent years we have seen many more enquiries from buyers based in European countries and other countries in the Asia Pacific region.
But freehold branded residences are still the choice for most foreign buyers, and Tamthai says that up to half of a freehold branded residence they develop gets snapped up by overseas buyers.
A new generation of young and wealthy buyers is also starting to dominate sales of luxury branded residences, says Tamthai. “In addition to their high expectations for a good quality product, excellent location, and outstanding service, these younger buyers focus a lot on environmental sustainability and energy savings … They are willing to pay more for larger living spaces, especially after the pandemic.”
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