Connect with us


By The Book: Market signals in the new year



PHUKET: Last year, Thailand experienced a record number of tourist arrivals – 32.6 million (up 9 per cent year-on-year), generating 1.6 trillion baht in revenue (up 12.6 per cent year-on-year).

As we go further into 2017, occupancy rates for rental properties over the high season look good – albeit slightly lower than previous years – especially for pool villas, which seem to be like gold dust right now.

In some respects, 2016 was a tremulous year, both in Phuket and abroad. However, many seem to hold a positive view for the year ahead.

Thailand, while going through a period of transition, has once again proven itself to be resilient, with tourist arrivals at record highs, a stable currency and one of the best performing equity markets in 2016 (up 20 per cent year-on-year). With elections due in early 2018 and infrastructure improvements planned, the outlook is positive.

On a global scale, 2017 – under a Trump presidency and most likely populist policies – will improve the American economy. The US stock market clearly thinks so and a healthy US economy will be good for the global economy.

In Europe, we will see the UK enact article 50 and be the first nation to leave the Euro Zone. So far, none of the doomsday predictions have come to fruition. There are some bright sparks in Europe, particularly the economies of the northern EU countries.

An improvement in both US and EU economies would be advantageous for the property market here.
Since reaching a peak in 2013-14, resale prices in Phuket have come down, in some cases by as much as 20 per cent. At some current levels, buyers could not purchase land and build for the same cost as purchasing a property in the secondary/resale market here.

This, coupled with a reduction in the number of new developments in Phuket, has led to an increase in resale transactions.

Land prices still haven’t come down in Phuket, as land owners tend to be willing to hold on longer for prices to recover, rather than chase the market down.

However this trend cannot last forever – eventually the prices of resale properties will have to realign. As the global economy improves and people begin to see stability in Thailand, investors will return.

The current lack of new developments will push demand for resale property and thus prices. As already mentioned, rental occupancy has remained strong, proving that people cannot stay away from Thailand.

When the global economy improves, we should expect an improvement in rental rates and tourist arrivals as well.

As the sayings go, ‘The time to buy is when there’s blood in the streets’, and ‘You pay a very high price for a cheery consensus’. While there certainly isn’t blood in the streets, by buying now you are likely to achieve attractive returns, that will no doubt become even more attractive in the coming years.

Kevin Hodges can be reached at Siam Real Estate Tel: 076-324042 Email:;

— Kevin Hodges


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:

Bangkok10 mins ago

MRT says Bangkok won’t suffer any Seoul-type metro flooding

Politics11 mins ago

Exiled Sri Lanka president expected to arrive in Thailand tomorrow

Northern Thailand12 mins ago

Tourists can see rare orchids in bloom at northern Thailand waterfall this month

Sponsored4 hours ago

LASIK eye surgery with state-of-the-art procedures in Thailand

Tourism59 mins ago

StyleCation: latest TAT campaign aims at young domestic tourists

Thailand2 hours ago

Thailand to consider Chinese engines for S26T Yuan submarine

Weather2 hours ago

Tropical storm ‘Mulan’ to hit several provinces of Thailand between August 11-13

Join the conversation on the Thaiger Talk forums today!
Pattaya3 hours ago

Pattaya’s tourist busses are back at the floating market, but missing Chinese

Phuket3 hours ago

TikTok post accuses Phuket restaurant of unfair, unlisted prices

Krabi3 hours ago

Whale shark washed up on a Krabi beach in Thailand

Thailand3 hours ago

Thailand introduces fine for not wearing seat belt in the back seat

Eastern Thailand4 hours ago

Baby’s birthday party turns violent in eastern Thailand

Thailand4 hours ago

Thailand’s new narcotics laws offers drug offenders treatment

Thailand4 hours ago

Toad travels from Thailand to Wales in student’s suitcase

Crime4 hours ago

Thai stunt director released from Myanmar

Economy4 hours ago

US’s Chips & Science Act good news for Thailand’s car industry

Thailand11 months ago

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

Thailand1 year ago

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

Tourism1 year ago

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

Phuket1 year ago

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

Tourism1 year ago

Phuket Thai food treats you need to try | VIDEO

Thailand1 year ago

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

Tourism1 year 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