HIGH SEASON PROPERTY SURGE Will Bonus Market Return?
One of the most overlooked drivers of high end Phuket real estate the past decade has been the mega bonus phenomenon in nearby Hong Kong and Singapore. For much of the past 10 years bankers, financial services and those working for blossoming Asian enterprises enjoyed huge annual bonus windfalls.
While 2007 to 2008 were no doubt a glitch in the cycle, company earnings are now back in full force and Asia has indeed led the global market recovery. For the Phuket property sector the question is, will this coming season see the return of these buyers?
All too often there is a misconception between tourist high season and a correspondence to this driving property. While in the broader market this is more relevant at the upper end hope springs eternal with the virtually coming of spring and announcement of individual bonuses.
While some pundits have correctly speculated the in the age of luxury guilt some companies may be looking at stock offerings or non cash payouts, in the broad terms the local industry is seeing an uplift in transactions and potential buyer activity.
In a market where cash remains king, no doubt the twining of cashed up buyers and real estate sold for cash create a potent mix.