A recent article taken from the Investment International Magazine, shows that Phuket is still one of the best places in the world to invest in property:

Thailand Property Market Synopsis:
The Thai property market continues to thrive with sophisticated destinations like Phuket leading the way, attracting international buyers with its unique blend of western luxury and exotic Asian environment.

However, developments are now also branching out into surrounding islands such as Phang Nga and Krabi as buyers demand untouched paradise. David Simister, Chairman of CBRE Thailand, explains “Tourism has always paved the way for resort property markets in Thailand and the recent upsurge as we recover from the Tsunami is motivating the development of both hotels and residential property projects.

Reasons for Phuket still leading the way are outlined by Andrew Howard of The Village, Coconut Island, “Phuket features an international airport, five beautiful golf courses and unspoilt white sandy beaches, but with all the necessary facilities such as banking, 24 hour international hospitals, department stores etc."

A large Bangkok residential developer, recently published research that reported the tourist market is booming again and the property market has followed suit with buyers attracted by Phuket’s increasing reputation as both a holiday and retirement destination.

According to CBRE Chairman David Simister, “Phuket’s property market has in seven years seen prices increase (on quality developments) by 300-400 per cent. Even today, many projects see their value double between launch and completion.” Andrew Howard describes the types of purchasers who are snapping up Phuket property. "Europeans purchase villas on Phuket as both holiday homes and investments, they are finding it more difficult to generate decent returns on their Spanish and French properties.

The Far East expatriates from Hong Kong, Singapore and Kuala Lumpur are using Phuket as a holiday base largely due to its extensive transport links, Phuket International Airport has over thirty flights a week to Singapore, Hong Kong and Kuala Lumpur and these short flights mean that business people can leave their offices and be sitting beside their swimming pools in Phuket, with a cool drink in hand within a few hours.

"Families and retiring couples also find security in Phuket through the high standard of medical services from the international hospitals, communications are excellent and the British International School stands as a beacon of educational integrity within the entire Southeast Asian region. Plus with 3 marinas and another being built, Phuket has established itself as a sailing hub within the region."

In 2006 SEA Property International conducted a study that discovered they had 1,200 units under construction with 60 per cent having been sold before completion. Factors that have overshadowed those looking to purchase in Thailand might include the military coup that took place in September 2006. Those in Thailand at the time will no doubt speak of how little the coup impacted business activities and day to day life in Thailand.

It was indeed business as usual. David Simister commented: “In the week following the coup, CB Richard Ellis has received instructions to acquire land for developments in Phuket and Phang Nga, and inspected several prime sites with investors seeking to develop resort properties.
For the level of enquiries over the past few days, we see continuing healthy interest in Thai real estate, especially in resort areas.”

The buoyant positive outlook was once again softened recently with prospective changes to the Foreign Business Act (FBA); however the recommended leasehold option remains as the way forward for purchases.

Property in Thailand has indeed performed very well in the past few years and that trend seems set to continue with high build quality firmly established coupled with competitive pricing. Howard said: "I expect the market to remain strong for many years there are not many places that can truly offer a beach or waterfront property in what is going to be one of the Far East’s biggest holiday destinations.”

(Part of the Island Oasis Resorts Group), are the developer of the three projects mentioned here. We only sell our own property, and all our properties are subject to both availability, and possible price changes.



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