Connect with us

Business

Phuket Business: Property executives heed warning

Published

 on 



PHUKET: The island’s property market continues to grow with a high number of new apartments, condominiums and small hotels in line for approval.

This “rising boom” sets the stage for the AEC (ASEAN Economic Community), which will come into effect in 2015.

The Phuket Real Estate Association (PREA) recently held an “Executive Dinner Talk” at the Boat Lagoon Resort, inviting Songkran Issara, MD of Chan Issara Development Plc, as the keynote speaker.

Mr Songkran shared his outlook for the property sector in 2013 as well as views on the AEC.

Mr Songkran also talked about how Phuket’s tourism has thrived, and how the island’s property and tourism sectors complement each other; when tourism is good, the property business will follow, he said.

However, he noted such benefits will only be short lived, and that both the government and private sectors need to understand the importance of other factors, such as safety.

If a problem occurs, it will have immediate, negative impacts, especially in today’s ‘age of online’ in which negative news travels fast.

He talked about the need to keep tourism sites clean and orderly, l as well as looking after natural resources, which are important selling points.

He also stressed the need to improve on conveniences by developing infrastructure projects, namely in transportation.

He suggested that an increasing demand for boat berths, ports and marinas would prove to be another huge source of revenue for the province.

Moreover, he highlighted the importance of developing Phuket airport to a higher standard; building a large conference hall; and various other tourism promotional activities.

Other important speakers were Tanan Tanpaiboon, former head of the PREA, Mr Thanusak Phuengdet, head of the PREA, and Satchaphol Thongsom, a PREA board member.

Mr Tanan, speaking as Head Consultant for the PREA, said that with the advent of the AEC, locals shouldn’t be too concerned with investors from other countries, as investors from Bangkok are expected to be a greater threat to market stability.

He forecast that in two years Phuket will have over 7,000 condominium units, a considerable amount, given that in 1989, when the island experienced its first condo boom, there were less than a hundred units on the market. In the past 3-4 years there have been 800 to 1,000 new units built.

From the start of 2012 through to August, applications for an additional 1,200 condo units have been submitted.

In two years time, he estimates that there will be as many as 3,000 applications submitted annually, growth leap equivalent to 300%.

Aside from this, he said that AEC will have major implications for the house and apartment rental sector, as well as small hotels.

Since the marketing strategies of new property developers tend to offer payment conditions with many ‘hard-to-resist’ incentives, flocks of buyers, most of whom are looking to turn a profit, have been lured into the market.

Mr Thanusak agreed and built on Mr Tanan’s points. He stressed that the high demand we are seeing is not necessarily reflecting the “real market” like in the past, but is increasingly being driven by speculative investment.

Therefore, he warned developers to be careful and to do proper marketing research before launching projects. He stressed that Phuket’s property growth will be relevant to its tourism growth, and that the AEC will thus enhance the market. Therefore, we should be prepared to employ the best defense and offense, he said.

 

Get more from The Thaiger

Join the conversation and have your say on Thailand news published on The Thaiger.

Thaiger Talk is our new Thaiger Community where you can join the discussion on everything happening in Thailand right now.

Please note that articles are not posted to the forum instantly and can take up to 20 min before being visible. Click for more information and the Thaiger Talk Guidelines.

Archiving articles from the Phuket Gazette circa 1998 - 2017. View the Phuket Gazette online archive and Digital Gazette PDF Prints.

Follow Thaiger by email:

Crime14 hours ago

Fans stage simulation of Tangmo’s death in protest of law activist’s defamation case

Thailand14 hours ago

Thai road sweepers get safer new uniform for work

Thailand14 hours ago

Thailand News Today | Police patrol Pattaya Beach looking for guns, booze, prostitutes

Sponsored23 hours ago

Starting a business and obtaining SMART Visa in Thailand is easy with Startup Booster

Phuket15 hours ago

4 Chinese fishermen lost at sea rescued near Phuket

Pattaya15 hours ago

Two lost children found on Pattaya’s Walking Street

Guides15 hours ago

5 underrated apps you need to use in Thailand this year

Join the conversation on the Thaiger Talk forums today!
Phuket15 hours ago

Cheeky Taoist procession spices up Phuket’s veggie fest

World16 hours ago

Avalanche strikes mountaineering team in Indian Himalayas, 4 killed

Cannabis16 hours ago

Can foreigners legally grow cannabis in Thailand?

Tourism16 hours ago

1-billion-baht tourism stimulus back on track

Thailand16 hours ago

Ordination ceremony concert goes on despite flood

Hot News16 hours ago

Flooding may impact Thailand’s tourism recovery

Road deaths17 hours ago

Young woman killed in hit-and-run in Chon Buri

Hot News17 hours ago

Myanmar youth artists hold art challenge to raise awareness of country’s plight

Entertainment17 hours ago

“One For the Road” film is Thailand’s 25th Oscar attempt

Thailand1 year ago

Morning Top Stories Thailand | Police to end protests, Human Trafficking | September 14

Thailand2 years ago

Thailand News Today | Thai Airways in rehab, All go for Songkran | March 4

Tourism2 years ago

Phuket’s nightlife. Yes, bars and clubs are still open | VIDEO

Phuket2 years ago

Thailand News Today | Covid passport talks, Thai Airways heads to court | March 2

Tourism2 years ago

Phuket Thai food treats you need to try | VIDEO

Thailand2 years ago

Thailand News Today | Bars, pubs and restaurants ‘sort of’ back to normal | Feb 23

Tourism2 years ago

In search of Cat & Dog Cafés in Phuket Town | VIDEO

Thailand2 years ago

Thailand News Today | Gambling crackdown, Seafood market to reopen, Vlogger challenge | Jan 21

Thailand2 years ago

Thailand News Today | Covid testing for visas, Business impact, Vaccine approval | January 19

Thailand2 years ago

Thailand News Today | Weekend Bangkok bombs, Thailand fires, Covid update | January 18

Thailand2 years ago

Thailand News Today | Stray car on runway, Indonesian quake, 300 baht tourist fee | January 15

Thailand2 years ago

Thailand News Today | Governor off respirator, sex-trafficking arrest, condo prices falling | January 14

Thailand2 years ago

Thailand News Today | Chinese vaccine, Thailand ‘drug hub’, Covid update | January 13

Thailand2 years ago

Thailand News Today | Bangkok may ease restrictions, Phuket bar curfew, Vaccine roll out | January 12

Thailand2 years ago

Thailand News Today | Covid latest, Cockfights closed down, Bryde’s Whale beached | January 11

Trending