Savvy investors see new potential in Phuket

14 November 2008

Interest in the Phuket property market has increased in recent weeks despite the troubled financial markets as savvy, cashed up investors focus on Thailand’s most popular island.

According to Martin Phillips from Engel & Volkers (Thailand) Ltd, the attraction is simple. Thailand, while not totally unaffected by the world’s economic woes, has taken a very conservative approach to the financial crisis. Banks have cleaned up their balance sheets and are now careful lenders with no sub-prime exposure. Phuket property transactions are principally a cash purchase, and as such, there is usually little mortgage or debt in place.

This means there is less risk of asset values falling other than through supply and market demand.

In fact prices have held stable in Phuket while in other parts of the world, property prices are experiencing steep property price declines.

There are also guaranteed yields of up to 8per cent in place for properties on Phuket which are attached to resort facilities.

Completed and near completed projects are also offering guaranteed yields of up to 8 per cent per annum subject to, terms and conditions such as placing the property into a rental pool.

Obtaining a good yield is one positive point, but when you consider the additional benefits of buying a great holiday home and possible long-term capital appreciation, buying property on Phuket can be a very favorable investment alternative.

Source: Phuket Post