Connect with us

Property

By the book: Not all doom and gloom on Phuket

Legacy Phuket Gazette

Published

 on 

PHUKET: People who spend time on Phuket or reside here will surely have heard expats grumbling about the island’s property market.

Of course there are some nagging issues: there is a lack of easily accessible information for buyers, similarly and most certainly a lack of regulation and there is no Multiple Listing Service [MLS].

However, while the market here is a little soft with the resale/secondary side yet to get into full swing, we believe it is not all doom and gloom because it does have a bright future ahead with many strengths already in place and many more opportunities on the horizon.

Moreover, property prices in Phuket have been very stable mainly because nearly all foreigners are cash buyers as it is impossible for them to get a mortgage in this country. This greatly reduces the amount of debt in the market.

A large segment of foreign-owned property is made up of retirees and these buyers will not slash prices to sell because the property is part of their retirement plan so they will instead wait for the market to recover. The upshot of this is more stable pricing than in other property markets.

The build quality and standard of materials used has improved considerably over the past decade and now Thailand is producing quality properties to international standards. There is a huge amount of choice on offer to buyers in Phuket covering different types of property, locations and price ranges.

Compared internationally, Thailand’s property transaction taxes are relatively low and there are no municipal taxes (details here)

From the perspective of the Greater Mekong Sub-region, Thailand also has excellent infrastructure. Phuket in particular has good roads, first-class hospitals and international schools and its infrastructure is improving all the time. This is clearly visible as the island becomes increasingly accessible with the expansion of Phuket’s International Airport. Direct flights to Phuket are now available from Europe, the Middle East, Russia, Australia and many other countries within Southeast Asia. More arrivals to Phuket will surely mean more potential property buyers.

An improved lifestyle offered by living in Phuket is a major attraction for many expats. The weather, Thai culture, Thai and international cuisine, beaches, established expat community and sporting activities are some of the main advantages of living in Phuket.

Tourism in Phuket has been booming for a while now with tourist numbers growing year on year. This is supported by a first class hotel industry that provides huge economic benefits for Phuket and with more luxury hotel brands coming online the industry looks set to prosper well into the future.

For those looking to purchase or develop property here in Phuket, or other related business, there are many opportunities.

There are also good value resale options with Siam Real Estate’s Residential Market Report pointing out that resale properties in Phuket are on average priced lower than new properties. This provides opportunities for above average return on investment [ROI] through rental returns and capital gains. New off-plan condo and villa developments also offer interesting deals to those who buy early.

There is also a growing trend of more families using Phuket as a hub to do business throughout the Southeast Asian region. This is supported by the strong infrastructure here and, as previously mentioned, because Phuket is becoming a destination for international-level education, a trend which sees no sign of abating.

Phuket is also benefiting from another regional trend: property in Singapore and Hong Kong is now extremely expensive compared to this island. A lot of property investors in these locations are looking to invest on the island as they see more opportunity here and perhaps have been priced out of their own cities.

Despite what you might hear, Phuket is not yet overdeveloped and there is continuing market demand for new property developments.

Phuket already has a well-established and successful marine industry and, with the support of the government, Phuket’s marine industry is expanding. Much publicized recently was Phuket’s plans to attract more superyachts to the island’s marinas.

As with any business and investment, there are always threats that could derail the best laid plans. It is nearly impossible to predict the next black swan event, even though in hindsight some will say ‘I told you so.’ With this in mind we mention some potential threats to the market below.

Growth in popularity of competing tourist destinations inside Thailand and within the Southeast Asian region could attract tourists at the expense of Phuket. However, they have a lot of catching up to do.

Further strengthening of the Thai baht is unlikely as the US has ended its QE program and is very likely to start increasing interest rates later this year or next year, while Thailand seems set on keeping rates low. This will see funds flow out of Thailand and back to the west, which in turn will see the baht weaken against the US dollar and other major currencies.

Renewal of political instability is currently not an issue as the military government has provided much stability to the Thai economy and political environment. Prior to returning power to the electorate, the NCPO plans to implement political reforms that will provide a stable base for future Thai politics.

Having analyzed the market here we believe that the strengths and opportunities Phuket offers far outweigh the weaknesses and potential threats. Although the market is currently soft, we expect this to be nothing more than the usual economic trend that affects property markets all over the world. Phuket’s brightest days lie ahead of us.

For more information, contact Kevin Hodges by calling 076-324042 or emailing: kevin@siamrealestate.com.

— Kevin Hodges

 

Get more from The Thaiger

Looking for your next home in Thailand? Let us match you with a local expert in minutes!

Thank you for your interest!

One of our agents will
reach out to you soon.

I want to:
  • Thailand (ไทย)+66
  • United States+1
  • United Kingdom+44
  • Australia+61
  • Afghanistan (‫افغانستان‬‎)+93
  • Albania (Shqipëri)+355
  • Algeria (‫الجزائر‬‎)+213
  • American Samoa+1684
  • Andorra+376
  • Angola+244
  • Anguilla+1264
  • Antigua and Barbuda+1268
  • Argentina+54
  • Armenia (Հայաստան)+374
  • Aruba+297
  • Australia+61
  • Austria (Österreich)+43
  • Azerbaijan (Azərbaycan)+994
  • Bahamas+1242
  • Bahrain (‫البحرين‬‎)+973
  • Bangladesh (বাংলাদেশ)+880
  • Barbados+1246
  • Belarus (Беларусь)+375
  • Belgium (België)+32
  • Belize+501
  • Benin (Bénin)+229
  • Bermuda+1441
  • Bhutan (འབྲུག)+975
  • Bolivia+591
  • Bosnia and Herzegovina (Босна и Херцеговина)+387
  • Botswana+267
  • Brazil (Brasil)+55
  • British Indian Ocean Territory+246
  • British Virgin Islands+1284
  • Brunei+673
  • Bulgaria (България)+359
  • Burkina Faso+226
  • Burundi (Uburundi)+257
  • Cambodia (កម្ពុជា)+855
  • Cameroon (Cameroun)+237
  • Canada+1
  • Cape Verde (Kabu Verdi)+238
  • Caribbean Netherlands+599
  • Cayman Islands+1345
  • Central African Republic (République centrafricaine)+236
  • Chad (Tchad)+235
  • Chile+56
  • China (中国)+86
  • Christmas Island+61
  • Cocos (Keeling) Islands+61
  • Colombia+57
  • Comoros (‫جزر القمر‬‎)+269
  • Congo (DRC) (Jamhuri ya Kidemokrasia ya Kongo)+243
  • Congo (Republic) (Congo-Brazzaville)+242
  • Cook Islands+682
  • Costa Rica+506
  • Côte d’Ivoire+225
  • Croatia (Hrvatska)+385
  • Cuba+53
  • Curaçao+599
  • Cyprus (Κύπρος)+357
  • Czech Republic (Česká republika)+420
  • Denmark (Danmark)+45
  • Djibouti+253
  • Dominica+1767
  • Dominican Republic (República Dominicana)+1
  • Ecuador+593
  • Egypt (‫مصر‬‎)+20
  • El Salvador+503
  • Equatorial Guinea (Guinea Ecuatorial)+240
  • Eritrea+291
  • Estonia (Eesti)+372
  • Ethiopia+251
  • Falkland Islands (Islas Malvinas)+500
  • Faroe Islands (Føroyar)+298
  • Fiji+679
  • Finland (Suomi)+358
  • France+33
  • French Guiana (Guyane française)+594
  • French Polynesia (Polynésie française)+689
  • Gabon+241
  • Gambia+220
  • Georgia (საქართველო)+995
  • Germany (Deutschland)+49
  • Ghana (Gaana)+233
  • Gibraltar+350
  • Greece (Ελλάδα)+30
  • Greenland (Kalaallit Nunaat)+299
  • Grenada+1473
  • Guadeloupe+590
  • Guam+1671
  • Guatemala+502
  • Guernsey+44
  • Guinea (Guinée)+224
  • Guinea-Bissau (Guiné Bissau)+245
  • Guyana+592
  • Haiti+509
  • Honduras+504
  • Hong Kong (香港)+852
  • Hungary (Magyarország)+36
  • Iceland (Ísland)+354
  • India (भारत)+91
  • Indonesia+62
  • Iran (‫ایران‬‎)+98
  • Iraq (‫العراق‬‎)+964
  • Ireland+353
  • Isle of Man+44
  • Israel (‫ישראל‬‎)+972
  • Italy (Italia)+39
  • Jamaica+1
  • Japan (日本)+81
  • Jersey+44
  • Jordan (‫الأردن‬‎)+962
  • Kazakhstan (Казахстан)+7
  • Kenya+254
  • Kiribati+686
  • Kosovo+383
  • Kuwait (‫الكويت‬‎)+965
  • Kyrgyzstan (Кыргызстан)+996
  • Laos (ລາວ)+856
  • Latvia (Latvija)+371
  • Lebanon (‫لبنان‬‎)+961
  • Lesotho+266
  • Liberia+231
  • Libya (‫ليبيا‬‎)+218
  • Liechtenstein+423
  • Lithuania (Lietuva)+370
  • Luxembourg+352
  • Macau (澳門)+853
  • Macedonia (FYROM) (Македонија)+389
  • Madagascar (Madagasikara)+261
  • Malawi+265
  • Malaysia+60
  • Maldives+960
  • Mali+223
  • Malta+356
  • Marshall Islands+692
  • Martinique+596
  • Mauritania (‫موريتانيا‬‎)+222
  • Mauritius (Moris)+230
  • Mayotte+262
  • Mexico (México)+52
  • Micronesia+691
  • Moldova (Republica Moldova)+373
  • Monaco+377
  • Mongolia (Монгол)+976
  • Montenegro (Crna Gora)+382
  • Montserrat+1664
  • Morocco (‫المغرب‬‎)+212
  • Mozambique (Moçambique)+258
  • Myanmar (Burma) (မြန်မာ)+95
  • Namibia (Namibië)+264
  • Nauru+674
  • Nepal (नेपाल)+977
  • Netherlands (Nederland)+31
  • New Caledonia (Nouvelle-Calédonie)+687
  • New Zealand+64
  • Nicaragua+505
  • Niger (Nijar)+227
  • Nigeria+234
  • Niue+683
  • Norfolk Island+672
  • North Korea (조선 민주주의 인민 공화국)+850
  • Northern Mariana Islands+1670
  • Norway (Norge)+47
  • Oman (‫عُمان‬‎)+968
  • Pakistan (‫پاکستان‬‎)+92
  • Palau+680
  • Palestine (‫فلسطين‬‎)+970
  • Panama (Panamá)+507
  • Papua New Guinea+675
  • Paraguay+595
  • Peru (Perú)+51
  • Philippines+63
  • Poland (Polska)+48
  • Portugal+351
  • Puerto Rico+1
  • Qatar (‫قطر‬‎)+974
  • Réunion (La Réunion)+262
  • Romania (România)+40
  • Russia (Россия)+7
  • Rwanda+250
  • Saint Barthélemy+590
  • Saint Helena+290
  • Saint Kitts and Nevis+1869
  • Saint Lucia+1758
  • Saint Martin (Saint-Martin (partie française))+590
  • Saint Pierre and Miquelon (Saint-Pierre-et-Miquelon)+508
  • Saint Vincent and the Grenadines+1784
  • Samoa+685
  • San Marino+378
  • São Tomé and Príncipe (São Tomé e Príncipe)+239
  • Saudi Arabia (‫المملكة العربية السعودية‬‎)+966
  • Senegal (Sénégal)+221
  • Serbia (Србија)+381
  • Seychelles+248
  • Sierra Leone+232
  • Singapore+65
  • Sint Maarten+1721
  • Slovakia (Slovensko)+421
  • Slovenia (Slovenija)+386
  • Solomon Islands+677
  • Somalia (Soomaaliya)+252
  • South Africa+27
  • South Korea (대한민국)+82
  • South Sudan (‫جنوب السودان‬‎)+211
  • Spain (España)+34
  • Sri Lanka (ශ්‍රී ලංකාව)+94
  • Sudan (‫السودان‬‎)+249
  • Suriname+597
  • Svalbard and Jan Mayen+47
  • Swaziland+268
  • Sweden (Sverige)+46
  • Switzerland (Schweiz)+41
  • Syria (‫سوريا‬‎)+963
  • Taiwan (台灣)+886
  • Tajikistan+992
  • Tanzania+255
  • Thailand (ไทย)+66
  • Timor-Leste+670
  • Togo+228
  • Tokelau+690
  • Tonga+676
  • Trinidad and Tobago+1868
  • Tunisia (‫تونس‬‎)+216
  • Turkey (Türkiye)+90
  • Turkmenistan+993
  • Turks and Caicos Islands+1649
  • Tuvalu+688
  • U.S. Virgin Islands+1340
  • Uganda+256
  • Ukraine (Україна)+380
  • United Arab Emirates (‫الإمارات العربية المتحدة‬‎)+971
  • United Kingdom+44
  • United States+1
  • Uruguay+598
  • Uzbekistan (Oʻzbekiston)+998
  • Vanuatu+678
  • Vatican City (Città del Vaticano)+39
  • Venezuela+58
  • Vietnam (Việt Nam)+84
  • Wallis and Futuna (Wallis-et-Futuna)+681
  • Western Sahara (‫الصحراء الغربية‬‎)+212
  • Yemen (‫اليمن‬‎)+967
  • Zambia+260
  • Zimbabwe+263
  • Åland Islands+358

    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

    You must be logged in to post a comment Login

    Leave a Reply

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

    image

    Follow Thaiger by email:

    Thailand3 hours ago

    Thailand News Today | Thai parents fear vaccine side effects on children

    Coronavirus (Covid-19)4 hours ago

    In Thailand, Covid numbers plummet, but restrictions remain

    Video5 hours ago

    Phuket Night Life Entertainment | Bangla Walking Street is Busier Than Ever

    Sponsored8 hours ago

    Siam Paragon wins the Best Luxury Shopping Mall 2022 Award

    image
    Phuket8 hours ago

    UPDATE: German woman found in Phuket

    Environment9 hours ago

    More Thai national parks to close to allow for recovery during monsoon season

    Tourism10 hours ago

    TripAdvisor’s 2022 Best of the Best Awards includes 2 Thai hotels

    image
    Join the conversation on the Thaiger Talk forums today!
    Coronavirus (Covid-19)10 hours ago

    Survey shows fear of side-effects preventing Thai parents from vaccinating children

    Thai Life10 hours ago

    Dengue hasn’t gone away – Dengue fever in Thailand 2022, and how to avoid it

    Phuket11 hours ago

    Elderly German woman still missing in Phuket as search enters seventh day

    Thailand11 hours ago

    Getting Goosebumps in Bangkok | GMT

    Coronavirus (Covid-19)11 hours ago

    Studies show Omicron infection in vaccinated people “turbo-charges” immunity

    Thailand12 hours ago

    Thai Golf website has 36% jump in views since borders reopen

    Thailand12 hours ago

    Visakha Bucha Day 2022. Today is the substitute public holiday.

    Chon Buri1 day ago

    Authorities worry too many elephants in Chon Buri, eastern provinces

    Politics1 day ago

    Yet another allegation of sexual crimes against Thailand’s Prinn

    Thailand8 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

    Thailand1 year ago

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

    Thailand1 year ago

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

    Thailand1 year ago

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

    Thailand1 year ago

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

    Thailand1 year ago

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

    Thailand1 year ago

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

    Thailand1 year ago

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

    Thailand1 year ago

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

    Trending