The islands of Phuket and Koh Samui in Thailand and the Indonesian island of Bali, in particular, always featured at the top of the global travel industry's rankings for Asian travel destinations.

Mr Webb said: 'Increasing worldwide demand for these destinations is seeing both local and international money driving these property markets forward.

'Be it the international hotel chains or wealthy individuals building fantastic villa retreats, these locations are attracting anyone who is seeking a piece of island paradise.'

Besides Asian buyers in the region, many Europeans are interested in buying into exclusive resorts and luxury villas on beautiful islands in Asia either because they want a holiday home or for investment purposes. Western buyers include expatriates working in the region, such as pilots.

Mr Webb said luxury serviced apartments at resorts, much like those commonly found in cities, were increasingly popular with investors.

The company's sales record for recent residential resort developments in Koh Samui and Bali proved beyond doubt their growing appeal - both projects sold out quickly.

'The key factor is that they appeal to those who prefer something more spacious than a hotel room but without compromising on service,' he said. From the owner's point of view, maintenance costs were significantly lower and yields were likely to be consistently higher.

Lighthouse International's clients are predominantly western expatriates or western-educated Asians. The company seeks to help them create an internationally balanced property portfolio as part of their overall investment strategy.

Mr Webb said the company was launching a new project for Hong Kong buyers -Tamarind Hills on Phuket. The project, located just north of the existing Laguna Phuket development, comprises 300 two- to three-bedroom apartments due for completion in 2007.

Phuket attracted the company's attention in part because of client interest and also because of its growing appeal to property investors. And the island's appeal was likely to continue for years to come, he said.

Mr Webb said the Phuket property market remained intact despite the tsunami disaster, with healthy demand and interest from investors.

Mr Webb said the disaster had had no impact on the project's sale schedule.

The initial sale, involving 63 units in two blocks, will be launched at a promotion campaign in Hong Kong later this month, followed by marketing activities in Singapore and Tokyo. Prices start from just under US$200,000 a unit. He expected all units to be taken soon and would look at raising prices for the future releases.

'Phuket is an island large enough to accommodate the different income levels of the regional and international travellers' booming demand for Asia,' he said.

'The island's tourism and property market is currently focused along the beautiful beaches and hillsides of the west coast. This coastline is fast evolving into a north/south divide, with the demarcation point being based around the north end of Patong Beach.'

The south was seen as catering for the mid-market - high density with package tours - whereas the north tended to attract the high-end, villa owners and independent travellers and investors, Mr Webb said.

He said there was a gap in the luxury serviced apartment sector in the north of the island which was currently dominated by, and somewhat oversupplied with, villas worth US$500,000 or more.

Tamarind Hills served to fill the gap in property ownership in the sought-after area.

Mr Webb said investors in countries with strong currencies could take advantage of buying dollar-based assets cheaply in an already proven tourist destination.

He also anticipated strong capital appreciation because of the serviced-apartment model adopted for the project.

To increase sales appeal, the management company of Tamarind Hills offers to lease the apartments back from buyers for an initial period of two years. It will offer a return of 8 per cent a year based on the original purchase price.