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Lift off for luxury villa rentals 
Lift off for luxury villa rentals
Over the last 10 years in
places like Koh Samui, Phuket and Bali, luxury properties have been
replacing coconut trees faster than the tourists can rent them. The
luxury holiday market has not only expanded, but also shifted to Asia
from the Caribbean, while private regional investment has increased
sharply as rental yields from second homes offer opportunities for
owners to enjoy an income at the same time as their property
appreciates. Although recent economic concerns have certainly cooled new
investment in resort markets across Asia, on the rental side the
downturn has prompted a concentrated effort to increase yields while
investors wait for sales to recover.
When compared to a 4 or 5
star resort, the construction of a luxury villa is both cost-effective
and swift. Consequently, in Southeast Asia potential rental clients can
now choose from an impressive stock of high quality beach and hillside
properties that offer as much, if not more, than hotel accommodation in
similar price ranges. With hundreds of standalone properties now
available for long and short term holiday rental in Thailand alone, the
range of designs, sizes and locations already rivals those offered by
hotels and resorts. In fact, branded hotel chains such as Four Seasons
and W have already launched their own private residences, in order to
capture a share of what many industry voices say will continue to be a
growing market.
"Private villas offer greater value for money and
privacy compared to a hotel," explained Terry Blackburn, long time
property publisher and the founder of the Elite Collection, a
fast-growing luxury villa agency. "They are perfect for families who
don't want babysitting hassles every night, groups of friends looking to
party in private or people just looking for a relaxing break. The only
demographic they don´t have a considerable advantage for is probably
couples travelling alone. Villas in Asia are also the best quality in
the world, which helps."
The Elite Collection is significant
because of its luxury focus and comprehensive regional coverage. The
company´s target market is primarily regional expatriate residents,
which means it has to watch the changing economy closely in order to
match expectations. "Expats on short term contracts who have just
arrived in Asia are perhaps not on as generous a package as previously,
so they are a lot more cost conscious – especially if they have
families, " explained Blackburn. "A typical 5-bed villa can accommodate
either two families staying together with 1 or 2 kids each or a single
family with nannies etc. However, there´s also groups of financial
industry workers – even now – in Hong Kong and Singapore who take a
villa for a lads’ weekend and people travelling from the US and Europe
checking in for a week or two as their main annual holiday, so there´s
plenty of variation."
According to those within the industry, the
wider market for villa rentals is still growing fast. Over the last 3-5
years, several agencies have been transforming tourism in Thailand´s
top destinations, steering international visitors toward private rentals
by adding ever more sophisticated options and services. Firms like
Samui Villa and Homes have brought luxury villas to the fore with
targeted marketing campaigns, comprehensive online descriptions and
reviews, photo galleries and video tours. Easy online booking systems,
promotional offers and bespoke services now make private villas just as
accessible and appealing as hotel accommodation.
"The key is to
offer more privacy, more personalised services, more facilities, and to
match the design aspirations of each guest thanks to the variety of
styles offered." said Marc Ribail, Chief Operating Officer at SVH.
"Sharing a villa is certainly cheaper than staying at 4-5 star hotels
despite their best deals, especially when you consider the low daily
cost of living. Guests can source their food and beverage at local
market prices and additional services such as a private chef or driver
can be enjoyed without adding considerable cost to the holiday."
Thanks
largely to Samui Villas and Homes, Koh Samui leads the field in
Thailand when it comes to rental villas and the company has now also
expanded to Phuket and Krabi with a full suite of added services. Beyond
the land of smiles, it´s Bali that has taken up the rental mantle with a
huge choice of properties on offer in several price categories,
generally situated in stunning tropical locations. The island´s unique
atmosphere and stunning scenery now consistently draws rental clients
from around the globe. "On Bali, we like to say it´s a cottage industry
which has grown up," said Ian Macaulay, President Director of Elite
Havens Group, Bali´s best known rental firm. "There are probably about
500 villas on the island worthy of being rented. New ones are being
added every day."
Macaulay believes it is personalization that
gives villa rentals a major advantage over hotels and the flexibility to
define your own special needs. "If you want to have a breakfast buffet
laid out for 10 people at three in the afternoon every day - a villa can
do it easily," he added. "You can do all kinds of things in the
swimming pool at any time and in any state you choose."
Of
course, as well as personal service, cost also comes in to play in
today´s climate, and for those considering renting a villa on Bali, even
at the high-end, prices remain highly competitive. A five-bedroom villa
on two acres of grounds with 700sqm of living space, 14 dedicated staff
and a 20m private swimming pool costs around US$800-1200 per night in
low season. That´s US$165 per bedroom, or US$83 per person, per night.
But choosing the right property to suit is not always easy and the most
successful agencies also have to carefully guide their clients beyond
price.
"In our experience, first-hand knowledge is essential,"
said Blackburn. "A lot of Australian guests for example are very
concerned about swimming pool safety for toddlers. So being able to
provide accurate answers to their questions can make a big difference to
their booking decisions."
By providing such choices and
freedoms, villa rental agencies across Asia are increasingly challenging
the hotel and resort market, while at the same time helping redefine
the Asian holiday experience.Source: http://www.property-report.com/thailand-property-magazine.php?id=20...
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