Property
Chinese funds trickle down to Phuket

PHUKET: The expected rush of Chinese money to overseas safe-haven properties after the recent crash of Shanghai’s stock market is an unlikely surge for this popular resort island, which will continue attracting some of the outflow, but less than what people might expect, Robert Collins, managing director of Savills (Thailand), says.
It is clear that Thailand is not the preferred choice of wealthy Chinese, although some of the money is coming here, but this is not at an institutional level and is more in terms of private, small amounts which go to single homes and condominiums, rather than block sales.
“I think the opportunity is there for the Thai market to understand what the Chinese buyer is looking for, rather than this assumption that they are going to come here because it is a good value and the sun shines,” Mr Collins said.
There is a bigger dynamic driving purchase requirements and it is expected that more mainland Chinese groups will come here to co-develop with Thai companies, just as Charn Issara Development Plc recently did by partnering with China-based Junfa Real Estate Company in developing the 42-rai Baba Beach Club on Phang Nga’s Na Tai Beach.
“There will be a few others.
“I think CP [Charoen Pokphand Group] has a very good mainland connection. The Chinese have a herd mentality and for historical reasons, they are not particularly individualist – like for going overseas; it’s at a very early stage and they are cautious, relatively speaking, in terms of overseas buying. It has bearing on this too, but I think the outlook is pretty good; there is money and there is desire to invest overseas,” Mr Collins noted.
While Chiang Mai captured the imagination of the Chinese with the 2012 smash-hit movie ‘Lost in Thailand’, Mr Collins pointed out that the mainland buyer is not going in for the really big ticket properties in the northern city, with this typically being more in the 10-million-baht price point.
“In Phuket there is a very, very small number of buyers, but it is at a multimillion dollar price point.”
As Greece lurches from one nail-biting crisis to another, with the latest deal leading to the release of an interim loan of 7 billion euros, the world remains fearful of the repercussions of a still-possible Grexit. However, Mr Collins says Thailand, and Phuket in particular, are unlikely to be affected to any great extent.
“From a tourism perspective, I would say there is a secondary impact, but the decline in Russian visitors has had a far greater impact.
“We have gone through a rolling series of crises, of various magnitudes, every seven and half years or so and the markets plow on.”
Turning to the Thai market, Mr Collins said weak consumer confidence, underscored by Kasikorn Research Center’s household Economic Condition Index in June hitting a record 11-month low of 43.8 percent, is affecting the property market to some extent, but the natural trend is for there to always be ebb and flow and peaks and troughs.
“We are in quieter days right now, which is understandable and, generally speaking, good products in good locations will continue to sell,” he said.
“We are certainly not seeing prices come down. There is a large volume of property in the market, but the market follows cycles and we are just in a quieter patch right now. It is completely natural.”
— Nina Suebsukcharoen
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.

-
Best of4 days ago
Beachfront restaurants in Phuket to dine with a view (2022)
-
Best of4 days ago
Italian restaurants in Koh Samui for pasta, pizza, red sauce, and everything else
-
Best of7 mins ago
Best diving schools in Koh Samui for 2022
-
Thailand4 days ago
CCSA to give thumbs up to 4am licensing in Thailand next week
-
Thailand4 days ago
Thailand workers could earn over 100,000 baht in Saudi Arabia
-
Indonesia3 days ago
Unexplained plane mysteriously sitting in a field in Bali
-
Bangkok4 days ago
Lots of Hong Kongers are searching for flights to Bangkok
-
Pattaya4 days ago
Free noodles for beach cleaners after Pattaya Music Festival mess