The latest reports from a Phuket-based property consultancy firm suggest that the high-end property market in Phuket has finally begun its comeback in recent months after the gloomy period of the economic crisis.
“As the world slowly emerges from the global economic issues of the past years, market demand is beginning to rise, with the 16 sales in 2010 coming as proof of that. 35% of those sales were recorded in the price interval of 100 million to 200 million baht, with the highest value sale being a single villa traded for 768 million baht”. However, “the shortage of new development and the increase in resale listings of premium properties mean that secondary sales should be anticipated to continue leading the market during next year as well, with the primary segment remaining rather obstructed”.
The charts included in the report suggest that the Russians topped property spendings during last year, totalling expenses of 1 billion baht for three villas, or a third of all the spending on Phuket. However, this figure also includes the Beyond Villa at Natai Beach in Phang Nga, traded for approximately 768 million baht (US$25 million), which represented a clear outlying value in terms of both size and price.
Tailing the Russians at approximately 400 million baht were buyers from Hong Kong, who also made three acquisitions, while buyers from Europe, India, Singapore and Thailand each bought two properties, with Australia and China ending the list at one acquisition each.
The current market conditions favouring buyers will see a short-term trend development towards secondary sales; that emerging markets in Europe and North America may lead to a fall in investments in Phuket; that the increasingly powerful Thai baht will tempt many buyers to seek business elsewhere or wait; and that the island’s international profile may benefit over the upcoming year from the rise in planned deluxe projects.
There are 65 high-end villas that have yet to be sold on Phuket, 44 of which lie on the west coast. of the others, six are found on the east coast and eleven in the south, with the remaining four in the north and Phang Nga.