Best real estate Phuket

Statistics published by the Airports of Thailand PLC (AOT) have revealed a clear recovery in the number of passengers to Phuket. During the January to July 2006 period, there were 2.9 million arrivals at Phuket International Airport, twice the traffic of January-July 2005 post-tsunami. The domestic market has now recovered fully to match the 2004 figures while the international in-bound market still has room to grow. Re-opening of direct flights from abroad will boost tourism. It was reported that there were almost 5 million arrivals to Phuket in 2006.

"We are not surprised that 2006 surpasses 2005 in terms of sales. The demographic of clients remains based in favour of expats coming out of Hong Kong followed by expats in the regional capitals. European buyers have been significant and this market area seems set to continue to be important as long as the Euro remains strong", says a real estate agent.

Phuket’s property market is enjoying a boom fuelled by rising demand from expatriates and across the entire spectrum of properties available. Transaction numbers and values in 2005 and 2006 so far have exceeded those for the same period in 2004.

According to real estate agents in Phuket, the Phuket market is experiencing an upward trend which appears in no danger of ending anytime soon. Transaction numbers and values in 2005 and 2006 so far have exceeded those for the same period in 2004. Indeed, signals suggest that we are at the early stages rather than the later stages of growth, both in demand and prices.

More buyers seeking the same type of idyllic properties with a good location and view will create an increase in land prices. When widely available financing becomes available, expect the rate of price increase to exceed that currently occurring. Thus, if you want to be close to the beach, buying now before better locations become even scarcer and costly makes sense.
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Total condominium supply on the island has more than doubled over the past two years, and we are starting to see more affordable projects on the island’s east coast, which has long been a favourite of villa developers.

The West Coast of the island remains the preferred location for condominium developers, with 73% of units under development on this coast. According to a survey conducted by Raimon Land on the condominium sector, clearly shows that prices of condominiums have risen in the last two years.

There were 377 condominium units sold in 2005 at an average price of Baht 64.480/m2 - a 20% rise over 2004 when 276 units were sold at the average of Baht 52,780/m2. During the January to June 2006 period, the average price is Baht 73,953/m2 and shows the same trend.

In term of enquiries, 90-95% of the demand is foreign with 65% from prospects living outside of Thailand, mainly from the USA, UK, Australia and Scandinavia.
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For Raimon Land, "Given new financing options, the growing influence of world-class architects, designers and professional service companies, plus fast improving infrastructure and facilities, strong growth in demand for well-located condominiums is expected.

The West Coast of the island is now seeing a shortage of land suitable for developments with sea views, leading to upward pressure on the unit prices in existing and future projects which encompass these traits. Higher development costs, especially for those with sea views combined with high beachfront land prices, have convinced developers to focus on condominium projects, rather than villas.

Due to the scarcity on beachfront land in Phuket, most condominium developments are built on the hillside to maximize views of the Andaman Sea. Building codes in Phuket force developers to build smaller scale projects with low-rise buildings. In addition, developments can be no higher than 80 meters above sea level, which further protects the island from over-development."
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Phuket is also experiencing a very positive response to the private home, apartment rental market. Many regular visitors who are familiar with the island find that the facilities offered by the traditional hotels or resorts to be somewhat cloistered.

With the current upswing in development in many areas of the island, Phuket is becoming known as a destination where you can take advantage of renting a privately owned home for either short or long term.
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Phuket has not escaped the impact of building materials increases over the last 18 months, one developer recently remarked about three identical homes he has built.

The first began in early 2003 and cost 10 million Baht to build. A more or less similar home begun seven months ago, and is on target to cost 13 million Baht. Even allowing for some simplification on these figures, the point is clear. If you are holding out on buying into this market, you will have to contend with higher land prices and higher building costs.

As far as the condominium sector is concerned, following recent prices trends observed on the island, we believe that the prices of quality condominiums could increase into the range of 80,000-120,000 Baht per square meter over the next two years.
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