Property in Phuket yet to reach pre-credit crunch values
Wednesday 6th of July 2011
A new report has found that while property prices in one of Thailand’s most popular tourist destinations are rising, they have yet to reach their pre ‘credit crunch’ levels.
The research from property company Colliers Thailand found that the high end coastal market in Phuket is yet to return to the values seen in 2007.
High end property values yet to reach 2007 levels
Whilst property prices in the Thailand resort have been increasing over the last couple of years, the report found that it has yet to reach its pre-financial crisis peak. Antony Picon, Associate Director of Research at Colliers said: “In many ways the glass at present can be perceived as half full or half empty depending on whether you are comparing with the period around 2006-7 or the situation in 2009.
“High end buyers are coming from a wider range of countries, not just Europe, with Hong Kong, Russia and the Middle East becoming key markets now.”
Low cost flights and yachting the main reasons for demand for property in Phuket
The continued demand for property in Phuket has been attributed to the increasing number of low cost international flights to the destination. Colliers believe that this increase in tourist numbers to Phuket will ultimately result in an increase of property buyers.
Mr Picon added: “The residential market in Phuket for foreigners has yet to return to the pre-Lehman days but it is well positioned when buyers from the traditional markets in Europe and the United States return to compliment to growth of the emerging markets.”
Phuket is also enjoying a growth in demand as a cruising destination to rival the Mediterranean or Caribbean. Patima Jeerapaet, managing director of Colliers Thailand, said: “Wealthy Asians are now a strong buying force for super yachts and Phuket’s status as a renowned yachting destination through its marinas and exotic outlying islands could be enhanced through further development and boost the high end property market still further.”
