Connect with us


Property Watch: Seeing through Phuket property transience



PHUKET: There are many themes of life in Phuket that are either interwoven or operate independently. It is possible, as many local Phuketians will testify, to exist in Phuket without even meeting your friends on a regular basis because you live on ‘different sides of the island’, or ‘don’t like driving over the hill’, or because of the traffic jams.

In terms of property, infrastructure and amenity development, the Phuket transience can also rub off on behavior and business. This requires a lot of adaptation and many newcomers to Phuket and the property market can be taken by surprise by some of the more unusual practices and experiences they might encounter during an investment.

One big issue with transience is maintaining your property, but also watching the costs and being part of a committee or group of owners that oversee the property. If you are never here, your voice will often count for little, and you will be at the whim of the most permanent resident’s voice and actions.

When it comes to use of your property and rentals, unless you happen to have a lot of spare time, you will have to work out a good way to compete in a market where there is now a lot of property for rent. In many developments selling real estate, the first few years of post-purchase is backed by a rental program return, sometimes guaranteed at a fixed rate. However, when that first period is over, you will be subject to the very lengthy monsoon season, with the bursts of monsoon even in the mostly-dry high season.

Therefore, your property will be rented out amid a lot of resort-style property that may be part of a hotel operation and have far more resources than you do in terms of marketing. This will challenge your potential to generate rental revenue, and it is a significant factor in choosing your property – how can it make enough money over the high season to make up for the long low season, and what will that look like in terms of expenses over a year, which will fluctuate a lot less than the rental revenue.

In terms of reliance upon business people, their stability can be compromised by transient behavior and this can affect your business dealings and property investments. If your seller is leaving Phuket post-sale, or your agent is only going to be an agent now and again, floating in and out of Phuket and other places according to the closest commission payment, then if you have any complaints that need to be addressed or post-purchase care requirements, these are not likely to be addressed.

In a stable, non-transient environment, there is naturally more accountability, and an element of self-regulated behavior based on a desire to preserve a good reputation over extended periods of time.

Phuket, with all its benefits, can therefore be disorienting for newcomers – even those possessing good business acumen and good standing – with its ‘temporary friends’, some fly-by-night businesses and companies, and, fortunately, with a healthy mix of established families and businesses that have a track record of success and investment dating back even before roads were installed in the province.

In order to get the most out of a short or long-term investment in property in Phuket, I recommend that a careful analysis of the elements of your investment that are, or could be, transient be conducted. This will help distinguish between a short-term promise, a temporary truth, and a fact that applies now and will apply in the future.

It can be difficult in Phuket to see past what can sometimes be a facade or presentation of success and prosperity, when the truth in most business environments and property markets, unless you are a committed gambling sort, is that appearances aren’t everything. Permanence, stability, certainty, substance, ‘long-termism’, planning and reputation will impact heavily on the success or otherwise of your investment.

— Desmond Hughes


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:

Destination Guide7 hours ago

Best areas to live in Phuket (2022)

Video8 hours ago

Thailand News Today | Fears of shenanigans in Mountain B Pub fire investigation

Travel8 hours ago

5 vineyards and wineries in Thailand all wine lovers should know

Sponsored18 hours ago

Super luxury villas in Phuket with breathtaking ocean views

Thailand8 hours ago

Thai neitzens angry at SUV driver using a siren just to use toilet

Thailand9 hours ago

New poll says people from Thailand more relaxed about Covid-19

Thailand9 hours ago

Rama 2 Road guilty of being a repeat accident offender

Join the conversation on the Thaiger Talk forums today!
Thailand10 hours ago

Body of one teacher found in double suicide pact in SE Thailand

Thailand11 hours ago

Son who tried to starve mother to death dies of TB in NE Thailand

Crime12 hours ago

Mystery 911 emergency service call turns out to be a monkey

Thailand13 hours ago

Hot gran bowled over by Shane Warne before he died in Thailand

Thailand13 hours ago

Soi Dog Foundation pledges to neuter 1 million animals in 2 years

Thailand14 hours ago

EPL praises Thailand for crackdown on illegal footie sites

Pattaya14 hours ago

Sick German man fails in suicide attempt in Pattaya

Video15 hours ago

Thailand approves all time high electricity price | GMT

Economy15 hours ago

Instant noodles, a staple budget food, fighting to increase prices

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