Connect with us

Property

By The Book: Market signals in the new year

Legacy Phuket Gazette

Published

 on 

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@siamrealestate.com; www.siamrealestate.com

— Kevin Hodges

 

Get more from The Thaiger

📱 Download our app on Android or iOS
👋 Have your say on our Thailand forums
🔔 Subscribe to our daily email newsletter
📺 Subscribe / Join YouTube for daily shows
👍 Like/Follow us on Facebook
🐦 FOLLOW us on Twitter
📷 FOLLOW us on Instagram

image

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.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

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

Follow Thaiger by email:

Coronavirus (Covid-19)23 mins ago

Despite Covid-19 Phuket Sandbox continues at least 2 weeks

Coronavirus (Covid-19)2 hours ago

Chulalongkorn University progressing on domestic mRNA vaccine

Koh Samui7 hours ago

Black Club Covid-19 outbreak on Koh Samui widens

Sponsored10 hours ago

Experience Phuket’s Islands with 5 Star Marine

Welcome back to Thailand!

Thaiger is getting behind local businesses for the restart of tourism in Thailand - up to 50% discounts across all advertising packages!

Thailand7 hours ago

Possible earthquake in Nonthaburi this morning

Best of8 hours ago

Chiang Mai’s 8 most indulgent spa hotels

Coronavirus (Covid-19)8 hours ago

Bangkok Bang Sue scam under investigation, 7 volunteers and counting to be questioned

image
Join the conversation on the Thaiger Talk forums today!
Thailand9 hours ago

Thailand News Today | ‘Crowding’ due to camera angles, train hospitals | July 29

Thailand9 hours ago

Spray guns ineffective and dangerous, says TFDA

Drugs9 hours ago

Methamphetamine pills hidden in instant noodle packets delivered for Covid patient

Coronavirus (Covid-19)10 hours ago

Anonymous “Dr Sandy” says pray the Covid situation gets better

Coronavirus (Covid-19)10 hours ago

Thursday Covid Update: Record high of 17,669 new cases; provincial totals

Phuket11 hours ago

Phuket governor eyes construction camps for stricter Covid measures

Best of12 hours ago

Top 5 spas in Chiang Mai

Coronavirus (Covid-19)12 hours ago

Health Minister says Bang Sue not crowded, blames “camera angles”

Cambodia13 hours ago

Cambodia plans lockdown with 8 provinces that border Thailand

Thailand5 months ago

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

Tourism5 months ago

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

Phuket5 months ago

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

Tourism5 months ago

Phuket Thai food treats you need to try | VIDEO

Thailand5 months ago

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

Tourism5 months ago

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

Thailand6 months ago

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

Thailand6 months ago

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

Thailand6 months ago

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

Thailand7 months ago

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

Thailand7 months ago

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

Thailand7 months ago

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

Thailand7 months ago

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

Thailand7 months ago

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

Thailand7 months ago

Thailand News Today | Southern floods, Face mask fines, Thai Air Asia woes | January 8

Trending