Connect with us

Pattaya

Tread carefully in budget condo market

Published

 on 

PHUKET: Regardless of whether the Thai gross domestic product expands at the lower target of 3 to 3.8 per cent, as earlier expected this year, it would not help the Phuket budget condominium market, or that of other major provincial cities, as they have already been affected, Phanom Kanjanathiemthao, managing director of Knight Frank Chartered Company, said in an exclusive interview with the Gazette.

One segment that is still looking somewhat vibrant is the development of single houses and townhouses, but the total volume is far lower than the condominium market.

“This is an option for developers, as they still have room to play, but other segments have definitely been impacted. I believe this is because buyers in the mid to low-end range have been hit by the weakening economy,” Mr Phanom said.

Developments in Pattaya are among those suffering because the key buyers, the Russians, have disappeared, while in Hua Hin there is usually more supply than demand can absorb annually.

“Samui can still move along… but I have heard many people say that one has to be very careful about Chiang Mai’s condo market,” Mr Phanom explained.

Currently, Phuket is quite exhausted in the budget and city condominium segment, with projects already built costing from 2 to 5 million baht because of poor sales or large amounts of vacant units in still-developing projects.

“Phuket’s city condos are something which everyone has to be cautious about – more so than normal. At this point, we are actually recommending that such projects not be launched,” Mr Phanom said.

However, he pointed out the bright side.

“As far as we can see, condos along Patong, Kata, Karon, Kamala and Surin beaches in the 3 to 7mn baht price range are still moving.”

The top-notch premium villa segment is flying above the economic malaise, the reason being that there are not that many of this type of project on the island, and each comprises only 10 to 15 pool villas.

“Among the projects launched over the last two to three years is Andara Signature, and this is doing well. As far as we can see, this segment is not something to worry about because it is a tight niche and, to put it bluntly, only wealthy millionaires are buying these villas,” Mr Phanom stated.

Regardless of international crises, particularly the feared exit of Greece from the Eurozone, this group of moneyed buyers will continue purchasing posh villas here if they so wish.

Although it’s feared that the Greek debt crisis will affect tourism, Mr Phanom pointed out that the link between tourism and the premium villa segment is quite flimsy, but certainly more tourists do improve the chances of selling more villas.

“Any widespread repercussions of the crisis in Greece would have some effect on Phuket, but actually those buying mid-range condos on the island come from across the world,” Mr Phanom reassured.

Even as the Russians have disappeared because of the weaker ruble, people from the Eurozone and Scandinavia have been buying property here. There are also other key, healthy markets, including Australia, Singapore, Hong Kong and other Asian countries.

“The Chinese market may continue to grow, so the overall picture is that Asian markets are still on the move,” Mr Phanom said.

— 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.

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

Follow Thaiger by email:

Chiang Rai7 hours ago

2018 Thai cave rescue inspires new attraction in Chiang Rai

Thailand7 hours ago

Thailand News Today | New traffic rule to affect entire country

Economy7 hours ago

Robots now serving people at Thai restaurant chain

Sponsored15 hours ago

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

Bangkok7 hours ago

Patiphan explains to police: It was my twin brother Patiphat!

Thailand8 hours ago

Woman faces jail for trafficking girls after karaoke raid in Thailand

Weather8 hours ago

South Korea’s capital sees record rainfall, at least 9 killed

Join the conversation on the Thaiger Talk forums today!
Protests9 hours ago

Amnesty International urges Thailand to free activists and return bail rights

Drugs9 hours ago

Truck leads police on 100km chase over shockingly small drug stash

Chon Buri9 hours ago

Chon Buri police couldn’t find victim of car crash on back seat

Phuket9 hours ago

Phuket expects recent India road show to bring in even more tourists, and revenue

Press Room9 hours ago

Jungceylon undergoes renovation to become a one-stop shopping paradise

World10 hours ago

Pakistani Taliban commander reportedly killed in Afghanistan

Tourism10 hours ago

Europeans lost in Koh Pha Ngan forest found by tourist police

Chon Buri10 hours ago

Mountain B fire death toll rises to 16

Bangkok11 hours ago

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

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

Trending