20-30 Million Baht Segment Liveliest in Phuket

18 October 2013

While easily upholding its position as Thailand’s key resort market Phuket also flexibly adapts to the times with the latest shift being towards the 20 to 30 million baht segment where most of the action is currently taking place, Martin Phillips, managing director of the Phillips Group Company said recently.

That is not to say that the super luxury end is not moving as enquiries still flow in with the highest amount seen by this agency being a hefty 20 million dollars but it is also clear that most of the activity is now in the 20 to 30 million bath range.

“We are selling villas up to a couple of million dollars and we are selling condos at about 800,000 dollars, around that area, but we are also doing a bunch of more affordable resort properties.

There has been some increase in smaller properties and it depends on what sort of a deal a buyer can get but the important point with smaller properties is that they are quite rentable”

Although Phuket’s real estate market has stabilized after being rocked by the western economic crisis Mr Phillips thinks it still remains a buyer’s market.

“We are seeing domestic developers doing a lot of projects but not so many foreign developers doing projects here at the moment but they are all aimed at the low- to mid-range end.

“There are still very little new launches of what I would call super luxury projects”

This agency recently circulated an email highlighting the distressed sale of a plush villa with the price discounted from 79 to 60 million baht bur Mr Phillips explained that such properties occasionally surface due to people’s personal circumstances rather that being a function of the market.

“They do move very quickly because it’s an opportunistic investment for somebody so even if the economy is bad there are always people with cash who are looking for property and so those types of investors will come out”

“The other factor is that prices have skyrocketed in places like Hong Kong and Singapore leading to some locals looking to overseas for investment. That their market has escalated is due to heavy purchases by mainland Chinese but mainlanders have yet to move into Phuket”

“They have introduced a lot of cooling measures in Singapore and equal amount of cooling measures in Hong Kong so I think people who would normally play in the local market are now considering playing in safer overseas markets but London is getting the prime chunk of money”

That the throngs of mainland Chinese tourists and the increasing number of Korean visitors are not buying property in Phuket is because their second home market is cities”

“So they are heavy investors in London, they are heavy investors Singapore, they are heavy investors in Hong Kong and I guess heavy investors in Macao as well”

“We are getting the younger generation, you know early 30s who are looking for a small getaway home here, but this is only after they have visited a few times and like Phuket”

Land transactions too are taking place and although Phillips Property has not handled a lot of these deals it did complete the safe of some plots at Phang Nga’s Natai beach which is just across the bridge from Phuket.

“Natai is an extremely popular and now it’s quite difficult to find beach-front land in that area. We could almost say that we have a waiting list of people who are interested in beachfront land in Natai”

“There are a lot of very high-end luxury villas out there at the moment and we have villas on our books between 2.5 to 7 million dollars”

Source: The Bangkok Post